BANKS ARE LIABLE.
Money Paid Out on Forged Cheques.
When payments, big or small, are made by banks on forged cheques the customer on whose account the order is drawn is adequately protected and the bank concerned is liable for the full amount.
The recent case at Napier where £IOOO was paid out on a forged cheque prompted an inquiry this morning from a city banker regarding the tv
The banker declared that cases of payments on forged cheques were rare, but whenever such a payment was made the bank had to foot the bill, no matter how large it might be. In the past there had been a few instances of forged cheques deceiving bank officials, and in one or two instances large amounts had been handed over, but such incidents were the rarest thing possible in the banking world.
The banker added that a cheque was an order , signed by a customer to pay a certain specified amount out of his account, but in the case of a forger)’ the signature was not that of the customer. He had given no authority for a payment to be made from his account with his bank, and the customer accordingly could in no way be liable.
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https://paperspast.natlib.govt.nz/newspapers/TS19350306.2.103
Bibliographic details
Star (Christchurch), Volume LXVI, Issue 20556, 6 March 1935, Page 7
Word Count
206BANKS ARE LIABLE. Star (Christchurch), Volume LXVI, Issue 20556, 6 March 1935, Page 7
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