Journal of the Institute of Bankers

Dividend Warrant-Endorsement.

QUESTION 1414.-A dividend warrant is presented through the Clearing House payable to John Jones and James Thompson. It bears the endorsement " John Jones, for self and co-trustee.'

Is this in order, and if not how should it have been endorsed?

ANSWER: The endorsement is not strictly in order. It should be "for John Jones and James Thompson." "John Jones" if on a dividend warrant. But if on a cheque or draft both signatures would be required.

Cheque of Syndicate-Endorsement by Trustees.

QUESTION 1415.-A cheque is made payable to the order of "The Kamtchatkan Syndicate," and is endorsed as follows:

"Kamtchatkan Syndicate,

J. Jones, Trustee."

Is this endorsement correct or sufficient?

ANSWER: The endorsement is unusual, and the bank to whom it is presented would be quite justified in asking for confirmation.

In payment of Overdraft or Acceptance-Banker's Right. QUESTION 1416.-An amount of £200 is paid over the counter of a bank for the credit of a firm's account: at the same time an advice to retire an acceptance of the same firm is handed over with the credit note for the same amount within £1, although the paying-in clerk did not state to the receiving cashier that the payment was to cover the acceptance. The bank receive the credit and return the advice slip. The next day the firm for whom the credit was received call a meeting of their creditors. They had an overdraft at their bankers and the credit received went towards its reduction.

Can the trustees of the estate recover the amount from the bank, or has the drawer of the bill any remedy against them?

ANSWER: The bank were quite within their rights in placing the amount towards the reduction of the overdraft, and the Trustees have no remedy against them.

QUESTION 1390 (Journal for March, 1898). The answer to this question is under re-consideration.