The ordinary commercial deposit normally results in a debtor-creditor relationship between bank and depositor. It is familiar doctrine that in this situation a duty rests upon the bank to honor its creditor's properly drawn orders to the extent of the depositor's balance. Payments by the bank, ostensibly according to such orders, but which are in truth not in accordance therewith, are the bank's loss at least so far as the supposed drawer is concerned. In bookkeeping terms this means that payments by the bank not strictly in pursuance of genuine orders ordinarily cannot be charged against the account of the apparent drawer.
BANKS AND BANKING - INCIDENCE OF LOSS RESULTING FROM PAYMENTS BY DRAWEE BANK NOT IN ACCORDANCE WITH DEPOSITOR'S ORDERS,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol33/iss5/5