Revised Laws of Saint Lucia (2021)

405.   Protection of banker

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    (1)   Where a banker, in good faith and without negligence—

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      (a)      receives payment from a customer of an instrument to which this section applies;

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      (b)      having credited a customer's account with the amount of such an instrument, receives payment for the instrument; or

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      (c)     receives payment for a customer of a cheques crossed generally or specially to the banker and the customer has not title, or a defective title, to the instrument,

the banker does not incur any liability to the true owner of the instrument by reason only of having received payment for it.

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    (2)   This section applies to the following instruments—

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      (a)      cheques including cheques which under section 404A or otherwise are not transferable;

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      (b)      any document issued by a customer of a banker, which though not a bill of exchange, is intended to enable a person to obtain payment from that banker of the sum mentioned in the document;

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      (c)     any document issued by a public officer which is intended to enable any person to obtain payment from the Accountant General of the sum mentioned in the document but is not a bill of exchange; or

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      (d)     any draft payable on demand drawn by a banker upon the banker, whether payable at the head office or some other office of the banker.

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    (3)   A banker is not to be treated for the purposes of this section as having been negligent by reason only of the failure of the banker to be concerned with—

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      (a)      the absence of an irregularity in the endorsement of an instrument; or

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      (b)      the purported endorsement of a cheque which is not transferable under section 404A or otherwise.

(4)   A banker receives payment of a crossed cheque for a customer within the meaning of this section, notwithstanding that the banker credits the customer's account with the amount of the cheque before receiving payment for it.

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         (Substituted by Act 14 of 2010)