Open Access. Powered by Scholars. Published by Universities.®
- Publication Year
- Publication
- Publication Type
Articles 1 - 26 of 26
Full-Text Articles in Law
Nsf Fees, James J. White
Nsf Fees, James J. White
Articles
Overdraft fees now make up more than half of banks' earnings on consumer checking accounts. In the past century, overdrafts have gone from the banker's scourge to the banker's profit center as bankers have learned that there is much to be made on these short term loans at breathtaking interest rates. I note that the federal agencies have been complicit in the growth of this form of lending. I propose that the banks and the agencies recognize the reality and attempt to mitigate these rates by encouraging the development of a competitive market.
Goldstein's Curse, James J. White
Goldstein's Curse, James J. White
Articles
ON April 16, 1980, a man using the name Marvin Goldstein opened a bank account at a Baltimore branch of Union Trust Company. He deposited $15,000 in cash. He told the branch manager that he planned to establish a Baltimore office of his father's New York business, "Goldstein's Precious Metals and Stones." Goldstein identified himself with a New Jersey driver's license and gave a bank reference from New York. On May 6, Goldstein deposited a check for $880,000 at another Union Trust branch near the branch where he had opened the account. Words on this check indicated that it was …
Checks Lost In The Collection Process, James J. White
Checks Lost In The Collection Process, James J. White
Other Publications
Given the millions of checks that are transferred among banks every year, the opportunity for loss and misplacement of such checks is enormous and the liabilities associated with such loss can be significant. This section deals with the collecting bank's liability for the check's loss before it is delivered to payer bank. If the payer bank receives and then loses the check, it will be subject to a different set of liabilities; those liabilities will be discussed elsewhere in the program.
Wrongful Dishonor, James J. White
Wrongful Dishonor, James J. White
Other Publications
Uniform Commercial Code section 4-402. I. Basic Liability II. Damages III. Miscellaneous Asides
Blocking Payment On A Certified, Cashier's, Or Bank Check, Michigan Law Review
Blocking Payment On A Certified, Cashier's, Or Bank Check, Michigan Law Review
Michigan Law Review
When disputes arise between buyers and sellers over completed commercial transactions and payment has been delivered to the seller in the form of a negotiable instrument, a dissatisfied buyer may seek to suspend the instrument's payment obligation. By blocking payment the buyer strengthens his bargaining position and prevents the seller from dissipating the proceeds of the sale before the buyer can establish the merit of his claim. Blocking payment forces the seller to enforce the commercial agreement through court action or satisfy the buyer's grievances.
What Ever Happened To The "Checkless Society"?, Isaiah Baker
What Ever Happened To The "Checkless Society"?, Isaiah Baker
University of Michigan Journal of Law Reform
In the late 1960's and early 1970's, a proliferation of articles in law reviews and other scholarly journals predicted a fundamental change in the payments systems in the United States. The "checkless society" was hailed as the coming thing-the latest and best innovation to come along in the vast areas of law covered by the Uniform Commercial Code provisions governing commercial paper and bank collections. Despite the claims that present technology is capable of effecting basic alterations in the existing check collection and payment systems, changes have been slow to come and are coming with deliberate speed rather than the …
Some Petty Complaints About Article Three, James J. White
Some Petty Complaints About Article Three, James J. White
Articles
IN many ways Article Three of the Uniform Commercial Code (Code) is like a huge machine assembled by a mad inventor and comprised of assorted sprockets, gears, levers, pulleys, and belts. Few thoroughly understand all of the jobs which this machine is to perform; and a search through the reported cases suggests that the machine is either performing so efficiently that it commits no mistakes worth litigating or it is not performing at all. In their study of the intricacies of Article Three, law students resemble persons climbing about on the machine-pulling its levers, testing its belts and pulleys, and …
Bills And Notes-Indorsements-Liability Of Collecting Bank To Drawer For Payment On Forged Indorsement, Richard Darger
Bills And Notes-Indorsements-Liability Of Collecting Bank To Drawer For Payment On Forged Indorsement, Richard Darger
Michigan Law Review
Plaintiff was the drawer of a series of checks which were signed by, an authorized agent because of the fraudulent representation of one of its employees. These checks were never delivered to the payees but were cashed by defendant bank for the guilty employee upon indorsements forged by him. Defendant indorsed the checks and collected thereon from the drawee bank which, in turn, charged the checks to plaintiff's account. Plaintiff discovered the fraud after the statute of limitations had run on any action by plaintiff against the drawee bank. Plaintiff brought this action seeking recovery on the basis of (1) …
Bills And Notes - Rule Of Price V. Neal - Application To Nonnegotiable Instruments And Money Orders, Edward W. Adams
Bills And Notes - Rule Of Price V. Neal - Application To Nonnegotiable Instruments And Money Orders, Edward W. Adams
Michigan Law Review
From a Mississippi post office, B stole fifty-five postal money order blanks. Notice of the theft was sent by the Post Office Department to all post offices. B filled in twelve of the blanks, making them appear genuine in all respects, and presented them to be cashed at defendant bank. In reliance on a confirmation of the validity of the money orders, received by calling a branch post office, defendant cashed them, giving B cash and travelers checks and starting a bank account for the balance. Defendant presented the orders at the main post office, and they were paid without …
Bills And Notes - Price V. Neal - Duty Of Presenter Bank To Make Inquiry, Oscar Freedenberg
Bills And Notes - Price V. Neal - Duty Of Presenter Bank To Make Inquiry, Oscar Freedenberg
Michigan Law Review
A stranger opened an account in the defendant bank and deposited therein several large checks (payable to himself) forged with the signature of the president of the plaintiff bank and drawn on the plaintiff. The checks were indorsed by the forger, and also by the defendant, the latter "guaranteeing prior indorsements." After payment by the plaintiff, the amounts were credited to the forger's account and soon thereafter withdrawn. The plaintiff alleged a local banking custom which required careful watching of new accounts and which the defendant failed to observe. On demurrer to the plaintiff's petition, held, that the rule …
Banks And Banking - Liability Of Bank Upon Payment Of The Check Of An Insane Depositor Without Notice Of The Insanity, William L. Howland
Banks And Banking - Liability Of Bank Upon Payment Of The Check Of An Insane Depositor Without Notice Of The Insanity, William L. Howland
Michigan Law Review
The plaintiff, as trustee for a depositor, sought in this action to charge the defendant bank with the amount of a check drawn by the depositor while insane. On the ground that the depositor was an inmate of the state hospital for the insane, the plaintiff had been appointed his trustee. Subsequent to this appointment, the depositor drew the check in question, and the defendant paid the amount of the check to the payee. Held, in the absence of actual or constructive knowledge of the insanity, a payment by a bank of the check of an insane depositor is …
Principal And Surety - Fidelity Bonds - Effect Of Failure To Make Disclosures Regarding Bonded Employees, Francis T. Goheen
Principal And Surety - Fidelity Bonds - Effect Of Failure To Make Disclosures Regarding Bonded Employees, Francis T. Goheen
Michigan Law Review
The defense on a fidelity bond given by the cashier was the failure of the officers of the obligee bank to disclose that prior to the execution of the bond the bank examiner had discovered and advised the officers that the cashier had, without the knowledge and consent of the officers and directors, become indebted to the bank in the. sum of $889.60 by paying his own checks drawn on the bank. When the overdraft was called to his attention the cashier immediately repaid the bank. The surety insisted that despite the fact that the officers of the bank may …
Banks And Banking-Liability Of Drawee Bank For Payment On Forged Indorsement
Banks And Banking-Liability Of Drawee Bank For Payment On Forged Indorsement
Michigan Law Review
Plaintiff's depositor gave to A a check, payable to A and B, in return for a chattel mortgage and a note, both signed by A and B. The check was indorsed and presented to the defendant bank for collection. The plaintiff paid the check, debiting the drawer's account. Two years later, when the note came due, it was found that B's name had been forged to the note, the mortgage, and the check. Plaintiff then credited its depositor's account with the amount of the check, and now seeks to recover from the defendant. The court held that …
Bills And Notes - Rights Of Holder Of Bill Against Drawee
Bills And Notes - Rights Of Holder Of Bill Against Drawee
Michigan Law Review
An employee of the plaintiff, payee of a check drawn on the defendant bank, indorsed the check without authority and cashed it, retaining the proceeds. The check was sent through the clearance to the defendant bank and charged to the drawer. The plaintiff brought suit against the bank by a complaint in the form of damages for the conversion of a check. It was adjudged for the plaintiff and the defendant appealed. On appeal, the plaintiff insisted that the payment of the check amounted to an acceptance by the defendant bank and that a liability to the plaintiff as payee …
Bills And Notes-What Negligence Of The Drawer Will Enable The Drawee To Charge The Drawer's Account When The Indorsement Of The Payee Is Forged
Michigan Law Review
An attorney, representing himself to be the agent of the owner of a certain piece of real estate, applied to the plaintiff for a mortgage loan. The loan being granted subject to title, a person represented to be the landowner appeared, signed the mortgage and note, and her acknowledgement was taken by a notary public who stated that he knew her to be the identical person described in the mortgage. The title was approved and a check payable to the landowner was delivered to the attorney, who, after forging the payee's indorsement, indorsed personally and cashed. The drawer is suing …
Bills And Notes -What Negligence Of The Drawer Will Enable The Drawee To Charge The Drawer's Account When The Indorsement Of The Payee Is Forged
Michigan Law Review
Plaintiff is the executor of a person who, in his capacity as treasurer of a voluntary loan association, issued a check on the association's account in the defendant bank, supposedly for a loan to a member of the association. The check, when paid, bore what purported to be the indorsement of the payee, and the signature of the president of the loan association. The supposed borrower denied the loan and his signature on the note in July, 1927, and asked to see the check, which he was shown after some months. He denied executing the indorsement and the defendant bank …
Banks And Banking - Misappropriation Of Trust Funds - Liability Of Bank
Banks And Banking - Misappropriation Of Trust Funds - Liability Of Bank
Michigan Law Review
Committee for incompetent deposited checks payable to him as such committee in the defendant bank to the credit of his individual account. The committee's account was entirely dissipated, but, so far as the facts appear in the opinion, the defendant bank at no time had any knowledge of the use to which the money was put. The committee was removed and the substituted committee sued the defendant bank for aiding the original committee in the diversion of the funds. Held, that it was the duty of the defendant bank to inquire whether the committee had authority to deposit the …
Banks And Banking-What Constitutes Payment Of A Check
Banks And Banking-What Constitutes Payment Of A Check
Michigan Law Review
The payee bank forwarded checks to the drawee bank for payment. The checks were entered on the "check journal sheet" and at the close of the business day were entered on the "general cash sheet" of the drawee bank. The drawee bank posted a letter to the payee bank stating that it had been credited with the checks. Later, the cashier withdrew from the mails this letter and altered the records of the drawee bank accordingly. The checks were never charged to the drawer's account on the "individual ledger" of the drawee bank and they were never stamped "paid." Held …
Conflict Of Laws-Bills And Notes-Law Governing Vailidity Of Transfer Of Check By Indorsement
Conflict Of Laws-Bills And Notes-Law Governing Vailidity Of Transfer Of Check By Indorsement
Michigan Law Review
The president of a New York corporation indorsed in blank in the corporate name a check payable to the corporation. He then indorsed the check personally and mailed it to the Banque De Bruxelles, a foreign corporation located in Belgium. The bank in Belgium received it for collection and forwarded it for collection to its correspondent in Washington, D. C. The proceeds were received by the bank in Belgium and credited to the personal account of the president of the New York corporation as directed by him. Later, he withdrew the amount from the bank for his own use. Assignees …
Failed Banks, Collection Items, And Trust Preferences, George Gleason Bogert
Failed Banks, Collection Items, And Trust Preferences, George Gleason Bogert
Michigan Law Review
About 1,200 banks failed in the United States during the year 1930, and failures for the years 1921-1929 averaged over 600 a year. Each of these bank failures doubtless involved several problems regarding collection items. In each case it was almost inevitable that there should be found among the assets in the hands of the defunct bank several items held for collection but not yet collected, and also that a number of items should have been collected but no effective remittance made on account of such collection. There thus arose a series of controversies between the banks or individuals which …
Bills And Notes -- Principal And Agent--Payment To Agent Of Drawer Upon Indorsement Forged By The Agent
Michigan Law Review
A was an agent of P for the purpose of securing applications for loans and disbursing the money to the borrowers. The custom was for P, after approving the application, to send to A a check drawn on D bank, payable to the joint order of A and the borrower. It was also the custom for A, in following out the course of dealing outlined by P, to secure the borrower's indorsement, add his own, deposit the check to an agency account in X bank, and then pay out the money to the borrower by personal checks on his agency …
Bills And Notes-Checks-Right Against Drawer-Presentation For Payment Within Reasonable Time
Bills And Notes-Checks-Right Against Drawer-Presentation For Payment Within Reasonable Time
Michigan Law Review
Defendant delivered a check on an Austin bank to the plaintiff at his farm, seven and one-half miles from Austin. On the fourth business day following, plaintiff deposited the check to his account with another Austin bank. Before the latter could collect, the drawee bank failed. From the date of the check to the drawee's failure, defendant had sufficient funds on deposit to pay the check. The plaintiff, on the three business days after receipt of the check, stacked corn fodder. His home was located on a good gravel road leading to Austin; and he owned an automobile. Held, …
Rights Of Holder Of Bill Of Exchange Against The Drawee, Ralph W. Aigler
Rights Of Holder Of Bill Of Exchange Against The Drawee, Ralph W. Aigler
Articles
“If the question were put to the average layman whether the holder of a check...had any effective rights against the drawee bank, it is believed that the almost universal response would be to the effect that of course the holder may insist upon payment by the bank, if there are funds on deposit to cover the amount. And if the same question were propounded to the average lawyer, the reply generally would be--at least if the lawyer had in mind the provisions of the Uniform Negotiable Instruments Law--that the holder had no rights against the bank. It is the purpose …
Is A Bank Check An Assignment Pro Tanto Of The Fund Or Deposit?, Ralph W. Aigler
Is A Bank Check An Assignment Pro Tanto Of The Fund Or Deposit?, Ralph W. Aigler
Articles
Before the Negotiable Instruments Law there was a clear conflict of authority as to whether a check for a portion of the account to the credit of the drawer was an assignment pro tanto of the fund.
Elements Of The Law Of Negotiable Contracts, Elias Finley Johnson
Elements Of The Law Of Negotiable Contracts, Elias Finley Johnson
Books
“The cases here collected and annotated, have been selected by the undersigned, primarily for the use of students in his classes. To make a wise selection of cases from the large number that are to be found upon a particular subject is a most difficult task … It has been attempted here to select, as far as possible, the very earliest cases upon the particular subject, so that the student would thereby be able to get at the reason of the rule without reference to any statutory provisions. Attention is called to the latest cases, however, in the foot notes.” …