Foster v. Peoples Bank

1. As “a general rule, when a hank receives a cheek from a depositor for collection, it must return to him either the cheek or the money. If the collecting bank surrenders the check to the bank on which it is drawn, and accepts a cashier’s check or other obligation in lieu thereof, its liability to its depositor is fixed, as if it had received the cash. It has no right, unless specially authorized to do so, to accept anything in lieu of money.” Empire Cotton-Oil Co. v. Sellars, 18 Ga. App. 377, 379 (89 S. E. 454). While it has been held that custom *448or usage may justify a collecting bank in…