In assessing whether a recipient acted 'on the faith of the receipt' for the change of position defence, the court is not limited to information received from the payer; attendant circumstances including information already known to the recipient may be relevant. State Bank of NSW v Swiss Bank Corporation is not to be followed insofar as it limits the inquiry to information from the payer. A bank that receives funds with instructions to credit a customer's account and then pays out in the ordinary course of banking operations on a plausible forged instruction acts 'on the faith of the receipt'. The question whether estoppel by representation survives as a separate defence where the change of position defence is available remains open.
The full text is available to signed-in members, including the 19 later cases that cite this judgment.
3 of the 19 citing cases carry a classified treatment. How each court treated it is available to signed-in members.