Bankers and Banking.
622 Sect.
12.
The Banker's Lien.
and
Bills
cheques received for collection.
Whether banker holds for collection or as transferee.
Duty in respect of bills etc.
more than enough
to cover the specific advance, the banker's lien attaches on the surplus proceeds (?). The banker's lien extends to bills and cheques paid in for collection, and even to bills of a customer of another bank transmitted by that bank for collection, unless the receiving banker has notice that the bills are the property of such customer (j). Where bills, notes, or cheques pass from a customer to a banker, a question of fact arises v^hether the banker takes them for collection subject to the lien, or as transferee, so as to become absolute holder for value (k). Where he takes them for collection the banker is, however, holder for value to the extent of the lien (l), and has full beneficial interest to that extent (m), and can sue for the full amount, holding any surplus over the customer's indebtedness as trustee for him. Where he holds as transferee, lien is excluded, but he has the ordinary rights of a holder for value, and can sue for the full amount irrespective of the customer's indebtedness, and without having to account for any balance received by him in excess of such indebtedness (n).
1255. The fact that the banker holds bills, notes, or cheques under a lien does not afi:'ect his duty to present them for acceptance where necessary, and for payment in due course, and to give notice of dishonour (o). Although, as before stated (p), there is some authority for saying that a banker who holds indorsed bills under a lien is entitled to negotiate them when the state of the customer's account renders such a course reasonable, it would be very unusual to do so iq).
Combination of accounts.
1256. Unless precluded by agreement or course of business, a banker is entitled to combine all accounts kept in the same right by the customer, whether deposit or current, and whether at the same branch or different branches, and to exercise his lien for the resulting balance (r). He may, in the absence of agreement or course of business, and either by right of lien or set-off, retain enough of an account in credit to satisfy a debit on another kept in the
Sale
by
of lien.
virtue
same
right.
1257. The banker's lien it is an implied pledge
lien
[i)
m
something more than an ordinary
The
Jones V. Peppercorne (1858), 28 L.
J. (CH.)
where the right (j)
is (s).
is
attributed to set-off.
distinction is not material in
158 Be Boives (1886), 33 Ch.D. 586. Compare Inman v. Clare (1858), J ohn. 769.
See p. 598, ante. See pp. 596 598,
—
ante, and cases there cited. Exchange Act, 1882 (45 & 46 Yict. c. 61), s. 27 (3). (m) See judgment of Court of Appeal in Great Western Rail. Co. v. London and County Banking Co., [1900] 2 Q. B. 464 (not affected on this point by its reversal in the House of Lords). {n) See Great Western Rail. Co. v. London and County Banking Co., supra, per Yau'ghan Williams, L.J., at p. 473. (o) This course is equally obligatory on him either as agent or holder for value. (l)
Bills of
Ip) See note {q)
But
way he
{g), p.
likes.
(r)
See
{s)
See Brandao
p. 806.
599, ante.
he holds them as transferee, he can of course deal with them in any
if
p. 587, ante. v.
As
Barnett (1846), 12 CI.
to pledge, see title
&
E. 787, per
Lord Campbell,
Pawnbrokers and Pledges.
at
