BANKING LAW – Banker-Customer Relationship – Collecting Bank’s Right to Debit Customer’s Account – Where Customer Draws Against Uncleared Cheques That Are Subsequently Dishonoured

When a customer draws against uncleared cheques that are later dishonoured, the bank is entitled to debit the customer's account for the value received. The bank must present cheques within a reasonable time—delay may cause liability. Mere crediting before proceeds are received does not make…