"In strict commercial law, "discounting" is purchasing, not lending. The discounter of a bill becomes the owner. If it turns out to be of less value than the price paid for it, the loss falls upon the discounter; and if a profit is made upon the transaction, it belongs wholly to the discounter: Carstairs v. Bates (1812) 3 Camp. 301 N.P. and London Financial Association v. Kelk (1884) 26 Ch. D. 107 at 134. However, in the case of a banker discounting the bill of his customer, the law is stated to be in these terms:- "When a banker discounts a bill he buys it for its face value less a sum representing interest for the period which the bill has to run. The banker takes the bill as transferee for value, and has the holder's normal right to sue on the bill if it is dishonoured. In the case of a customer the amount of the bill, less discount, is normally carried to current account, and if the bill is unpaid the current account is normally debited and the bill is returned to the customer. If the banker wishes to retain his right to recourse to other parties because his customer's account cannot meet the debit, the banker retains the bill and debits a suspense account. Whether the bill is taken from a customer for collection or as security, or is discounted for him, is a question of fact. The presumption in favour of a bill being taken by way of absolute transfer rather than of pledge or security is not so appropriate in the case of banker and customer as in other cases." 3 Halsbury's Laws of England, 4th Ed. p. 112 paragraph 151." In CHIEF FESTUS S.YESUFU V. AFRICAN CONTINENTAL BANK LTD Suit No; SC.29/1980 Per BELLO, J.S.C. (Pp. 22-23, paras.D-D)