7. Directly a customer becomes bankrupt, he is commercially dead: and he has lost all power to deal with his property, which is gone to his Creditors.

Consequently a banker may receive money on a bankrupt customer's account, because he does so as trustee for the Creditors: but he must not pay away any money to his customer's order: and if he does so, he will have to refund it to the Creditors.

He may retain any security he holds for any debt to which it is specially appropriated, but he is the trustee of the Creditors for any excess.

If a banker pays any of his customer's cheques after he has notice of his having committed an act of bankruptcy, he will have to refund the money and will not be allowed to prove for the amount.

On The Appropriation Of Payments

8. If a customer keeps several accounts with a banker, and is indebted to him, he has a right to say to which of them any money he pays in shall be appropriated. But if he makes a payment generally, the banker has the right to appropriate it to which he pleases, and may take reasonable time to determine which.