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The banker’s right to [[Combination of accounts|combine accounts]] arises where a customer has multiple [[bank account]]s, usually where some are in debit and some in credit. This stands to reason, obviously — unless there are multiple accounts, all overdrawn, but | The banker’s right to [[Combination of accounts|combine accounts]] arises where a customer has multiple [[bank account]]s, usually where some are in debit and some in credit. This stands to reason, obviously — unless there are multiple accounts, all overdrawn, but only some of them benefit from a [[security interest]] — though see also the rules about [[bailment]]. It is sometimes called a Banker’s ''[[set-off]]'' but, in 1972’s (still leading) case {{casenote|National Westminster Bank Ltd|Halesowen}}, Lord Buckley noted it isn’t a [[set off]] right so much as a function of accounting: | ||
:“Nor is it a [[set-off]] situation, which postulates mutual but independent obligations between the two parties. It is an ''accounting'' situation, in which the existence and amount of one party’s liability to the other can only be ascertained by discovering the ultimate balance of their mutual dealing.” | :“Nor is it a [[set-off]] situation, which postulates mutual but independent obligations between the two parties. It is an ''accounting'' situation, in which the existence and amount of one party’s liability to the other can only be ascertained by discovering the ultimate balance of their mutual dealing.” | ||
Combination of accounts is arguably available in any situation where one party has multiple accounts with another in one currency. Some questions arise when they are in different currencies.<ref>See also {{cite|Fearns|Anglo-Dutch Paint and Chemical Company Limited|2010|EWHC|2366}}.</ref> | Combination of accounts is arguably available in any situation where one party has multiple accounts with another in one currency. Some questions arise when they are in different currencies.<ref>See also {{cite|Fearns|Anglo-Dutch Paint and Chemical Company Limited|2010|EWHC|2366}}.</ref> | ||