Document ID: chunk:federal_register_of_legislation:C2012C00128:section:65
Version: federal_register_of_legislation:C2012C00128
Segment Type: section
Provision Reference: s 65
Character Range: 56805–57656

65  Banker paying demand draft whereon indorsement is forged

 (1) When a bill payable to order on demand is drawn on a banker, and the banker on whom it is drawn pays the bill in good faith and in the ordinary course of business, it is not incumbent on the banker to show that the indorsement of the payee or any subsequent indorsement was made by or under the authority of the person whose indorsement it purports to be, and the banker is deemed to have paid the bill in due course, although such indorsement has been forged or made without authority.

 (2) An order on demand, drawn by or on behalf of a banker at one place of business on and payable by the banker either at the same or at some other place of business, shall, for the purpose of the protection of the banker under this section, be deemed to be a bill payable to order on demand.