If a bill payable to order on demand is drawn on a bank, and the bank pays the bill in good faith and in the ordinary course of business, it is not incumbent on the bank to show that the indorsement of the payee or any subsequent indorsement was made by or under the authority of the person whose indorsement it purports to be, and the bank is deemed to have paid the bill in due course, although such indorsement has been forged or made without authority: Provided such indorsement does not purport to be that of a person who is a customer of the bank at the branch on which the said bill is drawn.

[Section 58 amended by section 19 of Act 56 of 2000.]