ay cheques is
terminated by the death, insanity or bankruptcy of the customer, or by
notice of an available act of bankruptcy committed by him.

The banker is bound to observe secrecy with respect to the customer's
account, unless good cause exists for disclosure, and the obligation does
not cease if the account becomes overdrawn (_Hardy_ v. _Veasey_, L.R. 3 Ex.
107). In England a cheque is not an assignment of funds in the banker's
hands (Bills of Exchange Act 1882, sec. 53). The holder of the cheque has
therefore no claim on the banker in the event of payment being refused, his
remedy being against the drawer and endorser, if any. On this section is
also based the custom of English bankers not to pay part of the amount of a
cheque where there are funds, though not sufficient to meet the whole
amount. The section does not apply to Scotland, where it would seem that
the bank is bound to pay over what funds it has towards satisfaction of the
cheque. A banker is entitled to hold paid cheques as vouchers until there
has been a settlement of account between him and the customer. The entries
in a pass-book constitute _prima facie_ evidence against the banker, and
when returned by the customer without comment, against him; but the
proposition that such return constitutes a settlement of account has been
much disputed. Indeed where forgery is the ground of repudiation of a
cheque, no dealings or omissions of the customer with regard to the
pass-book would seem to preclude him from objecting to being debited and
throwing the loss on the banker (_Kepitigalla Rubber Co._ v. _National Bank
of India_, 25 Times L.R. 402). As against the banker, however, credit
entries in the pass-book cannot be disputed if the customer has altered his
position in reliance thereon, and cheques drawn against an apparent balance
must be honoured (_Holland_ v. _Manchester & Liverpool District Bank_, 25
Times L.R. 386).

The rule by which the holder of a cheque has no direct recourse against the
banker who dishonours it, holds good even where the banker has before issue
marked the cheque as good for the amount, such marking not amounting to an
acceptance by the banker. As between banker and banker, however, such
marking or certifying probably amounts to a binding representation that the
cheque will be paid, and, if done by request of the drawer, the latter
cannot subsequently revoke the authority to pay. In certain circumstances,
marking at the instance