Citizens' Bank v. Commercial Sav. Bank

The general rule is well settled that—

“A bank which pays money by mistake on a raised or altered check or draft may recover it back from the person, provided the bank has not been guilty of culpable negligence in making the payment.” 7 Corp. Jur. 691, § 419.

A more precise statement of the law is made by Judge Freeman as follows:

“The bank or drawee is not bound to know the handwriting in the body of the instrument. Where, therefore, money is by mistake paid by a bank upon a raised or altered check, or by a drawee upon a raised or altered draft, neither party being in fault, it may generally be…