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Bills And Notes-The Meaning Of "Next Business Day", Richard B. Gushée S.Ed. Nov 1950

Bills And Notes-The Meaning Of "Next Business Day", Richard B. Gushée S.Ed.

Michigan Law Review

Two checks, payable to the plaintiff, were forwarded to the defendant drawee for payment on February 13, 1949. After the close of banking hours on February 14, the defendant telegraphed the presenting bank advising that it would not pay the checks. The applicable Illinois statute allowed banks until the end of the "next business day" following the day of presentation to decide whether or not they would pay checks. The plaintiff argued that "business" qualified "day" and that defendant therefore should have indicated its decision within business hours on the day following the day of presentation, and that since it …


Bills And Notes-Negligence Of The Depositor-Right Of The Drawee To Charge The Account, Thomas Hartwell Jun 1950

Bills And Notes-Negligence Of The Depositor-Right Of The Drawee To Charge The Account, Thomas Hartwell

Michigan Law Review

A depositor in the defendant bank was a large firm with a payroll clerk who prepared the employees' checks for signing by the proper officer. The clerk prepared checks for employees not then on the payroll, which the officer signed without investigation. The clerk then indorsed as the named payee, signed in her own name as final indorser, and cashed the checks at various banks. Such conduct did not seem unusual to the banks, as she would frequently cash properly indorsed checks as a favor to other employees. The returned vouchers were not examined by the depositor to detect errors. …


Bills And Notes--Indorsement "For Deposit Only"--Effect On Negotiability, Stephen A. Bryant S.Ed. May 1950

Bills And Notes--Indorsement "For Deposit Only"--Effect On Negotiability, Stephen A. Bryant S.Ed.

Michigan Law Review

Defendant, in payment for goods purchased, drew two checks payable to W which W indorsed "pay to order of plaintiff bank for deposit only" and deposited with plaintiff. Plaintiff credited W's account with the amount of the checks, which sum was immediately withdrawn. Defendant then stopped payment of the checks as W failed to deliver the goods purchased; and, since W was bankrupt, plaintiff sought to recover the amount of the checks from defendant. Defendant sought to assert a defense which was good against W, on the theory that plaintiff, as restrictive indorsee, was merely a trustee for …


Bills And Notes-Liability Of Indorser After Statute Of Limitations Has Barred Action Against Marker, James F. Gordy S.Ed. May 1950

Bills And Notes-Liability Of Indorser After Statute Of Limitations Has Barred Action Against Marker, James F. Gordy S.Ed.

Michigan Law Review

Defendant company made a note which was indorsed personally by defendant Heiselt, its president. The lower court, in rendering judgment against defendant Heiselt personally, held that the statute of limitations had run in favor of the defendant company but that it had not run in favor of the defendant Heiselt, as his absence from the state during a portion of the period had tolled the statute as to him. On appeal, held, affirmed. Under section 120(3) of the N.I.L. there had been no "discharge of a prior party" which would allow one secondarily liable to escape liability. Upton v. …


Negotiable Instruments Under The Uniform Commercial Code, George E. Palmer Jan 1950

Negotiable Instruments Under The Uniform Commercial Code, George E. Palmer

Michigan Law Review

The ambitious undertaking of the American Law Institute and the National Conference of Commissioners on Uniform State Laws to draft a "Uniform Commercial Code" includes a proposed revision of the Negotiable Instruments Law. This is not merely an attempt to patch up the present statute. It is virtually a complete rewriting. It includes many changes and additions in substance as well as a radical reorganization and rephrasing of language where no change in substance is designed. · It includes the much needed separation of the provisions relating to investment instruments such as corporate bonds from those relating to bills, checks, …