568
370
347.
of drafts these drafts have been duly paid. I have checked our records
and in 2nd place drafts are regarded our debit advice. When these
drafts are paid our correspondent bank debited our accounts and sent
these Crafts back as Debit Advice to us. If payee bank paid the draft to another account the bank would be liable for conversion. Receiving
bank ould have no right to credit account other than account shown on
face of draft.
I have checked records of my bank in relation to all the drafts
issued by it in relation to this case as to whether or not these drafts have been paid by our correspondent. I found that they were all paid.
Cross-exa ined by r. Hampton
110
$
A.
..s regards question of crediting another account assuming I had
current account with you and I write you a letter and didn't fill
up application form saying issue me a draft hidlands Bank Ltd. and
debit my account with that amount, you would do that, ould you?
Yes.
And next day after receiving draft from you, I discovered I did not need it and I wrote to you again -sending the draft back: please credit my account back less any exchange los etc. u would do it?
Yes.
Assuming that this craft i wrote you a letter asking you to make
payable to lidland Bank Ltd A/C 123 if I was also the holder of
hidland Bank A/C No. 123 isn't it correat I can write letter to Midland Bank Manager saying I am holder of A/C 123 and ask him to
pay the draft to 321 they could do it?
Yes but they have to check endorsement on craft.
Is it not correct that what bank requires is not an endorsement
because draft payable to Midland Bank and Midland Bank cannot
endorse it to hidland Bank but that bank needs evidence to show
why it did not credit my account draft was made in favour but to
another account?
midland Bank would require letter of indemnity from account
holder.
It would be perfectly possible if i had an account in Midland Bank and someone (corrupt person) know my account number for that person to purchase drafts payable to my account number for large
sums of money on each occasion with a letter of instruction and letter of indemnity to credit this account with money?
569
4.