PART H.] ACTS WITHIN THE CORPORATE POWERS. [§ 244. pays out its moneys, collects and pays its debts, and receives and transfers its commercial securities. Tellers and other sub- ordinate officers may be appointed, but they are under his di- rection, and are, as it were, the arms by which designated por- tions of his various functions are discharged. A teller may be clothed with the power to certify checks, but this in itself would not affect the right of the cashier to do the same thing. The directors may limit his authority as they deem proper, but this would not affect those to whom the limitation was un- known." § 244. It has been held in Massachusetts that a teller has no authority, by virtue of his office, to certify a check ; ' but at present for tellers to certify checks seems to be a general cus- tom, which obtains recognition in the courts. 2 Neither a cashier nor a teller, however, has power to certify, unless the drawer has funds in the bank sufficient to cover ; and no person knowing the drawer not to have funds in the bank can recover on the certification. 3 But a bona fide holder for value of a certified check without notice can hold the bank on its teller's certification, although the drawer had no funds in the bank at the time, and the teller certified the check in violation of his duty for the mere accom- modation of the drawer ; 4 for a person is entitled to assume that the facts exist on which depends the right of the teller or cashier to exercise his powers ; and may presume that such officers are doing, not violating, their duty. As Judge Selden Certifica- tion by teller. Accommo- dation cer- tifications. 1 Mussey v. Eagle Bank, 9 Mete. (Mass. ) 306. 2 See Farmers and Mechanics' Bank v. Butchers and Drovers 1 Bank, 16 N. Y. 125. 3 F. and M. Bank v. B. and D. Bank, 16 X. Y. 125; S. C, 14 N. Y. 623. A bank is usually not author- ized to make an accommodation in- dorsement, and is not liable to any one taking the paper with notice of the character of the indorsement. Bank of Genesee v. Patchin Bank, 13 N. Y. 309; Morford r, Farmers' Bank, 26 Barb. 568. Compare Na- tional Park Bank o. Warehousing 14 Co., 116 N. Y. 281. Other corpora- tions as well as banks have no au- thority to make accommodation en- dorsements. Carney v. Duniway, 35 Or. 131. That a cashier has no power to certify unless in funds is presumed to be known generally; and that a postdated check was cer- tified before the day on which it was payable, is a fact sufficient to put any one with knowledge of it on his inquiry. Clarke Nat. Bank v. Bank of Albion, 52 Barb. 592. See Pope v. Bank of Albion, 57 N. Y. 126.
- F. and M. Bank r. B. and D.
Bank, supra. 209
