This is not like the case that has been mentioned of a goldsmith's note, where, for the benefit of trade, that being looked upon as money, the drawer has been indemnified, if not offered the drawee in season.
12.
The court chastised both companies for their " neglect and error " in accepting the forged check, and suggested that they should only be permitted to shift the loss to the drawee only when he can demonstrate that the delay in notice caused him damage.
13.
In addition, the risk that stored valued products will be dishonored bythe issuer or drawee's default may be allayed by certain laws to ensurethat issuers invest in high quality, low risk assets and segregate assetsfor the benefit of the holders of stored valued devices.
14.
The drawer writes the various details including the monetary amount, date, and a payee on the cheque, and signs it, ordering their bank, known as the " drawee ", to pay that person or company the amount of money stated.
15.
Expressing this in less formal language, it is a written order from one party ( the drawer ) to another ( the drawee ) to pay a specified sum on demand or on a specified date to the drawer or to a third party specified by the drawer.
16.
With a cheque there are three parties-the person holding the bank account who gives the cheque ( the drawer ), the party the cheque is made out to ( the payee ) and the drawer's bank which promises to pay the money to the payee ( the drawee ).
17.
Before the introduction of this standard ( also known as 2-4-6 for current accounts and 2-6-6 for savings accounts ), the only way to know the " fate " of a cheque has been " Special Presentation ", which would normally involve a fee, where the drawee bank contacts the payee bank to see if the payee has that money at that time . " Special Presentation " needed to be stated at the time of depositing in the cheque.
18.
Justice Douglas chose to follow the rule set forth in " United States v . National Exchange Bank of Providence ",, in which the U . S . Supreme Court held that the U . S . government, " as drawee of commercial paper stands in no different light than any other drawee " and could recover on a check as a drawee from a person who had cashed a pension check with a forged endorsement, despite the government's protracted delay in giving notice of the forgery.
19.
Justice Douglas chose to follow the rule set forth in " United States v . National Exchange Bank of Providence ",, in which the U . S . Supreme Court held that the U . S . government, " as drawee of commercial paper stands in no different light than any other drawee " and could recover on a check as a drawee from a person who had cashed a pension check with a forged endorsement, despite the government's protracted delay in giving notice of the forgery.
20.
Justice Douglas chose to follow the rule set forth in " United States v . National Exchange Bank of Providence ",, in which the U . S . Supreme Court held that the U . S . government, " as drawee of commercial paper stands in no different light than any other drawee " and could recover on a check as a drawee from a person who had cashed a pension check with a forged endorsement, despite the government's protracted delay in giving notice of the forgery.
