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- Negotiable Instruments Law (6)
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Articles 1 - 19 of 19
Full-Text Articles in Banking and Finance Law
The Banking Act Of 1935, Harold James Kress
The Banking Act Of 1935, Harold James Kress
Michigan Law Review
The purpose of this article is to consider in a non-technical manner the principal changes in federal central and commercial banking law which have been brought about by the enactment of the Banking Act of 1935, and in that connection to take some account of the preexisting law and the announced or ostensible reasons for the changes made.
Bills And Notes - Bills Of Exchange - Assignment
Bills And Notes - Bills Of Exchange - Assignment
Michigan Law Review
Under an agreement with the intervener that the intervener would "finance" his purchases of stock, the defendant shipped stock to the garnishee, drawing on the garnishee in advance for the purchase price, the intervener being named as payee. With knowledge of the drawing of the draft, the garnishee received and sold the stock, but was thereafter served with summons in this garnishment suit before acceptance or payment of the bill. Held, that the intervener is entitled as equitable assignee to the amount of the draft as against the plaintiff. Baird v. Simonstad, (Minn. 1934) 258 N. W. 570.
Banks And Banking - Collections -"Cash Or Solvent Credits"
Banks And Banking - Collections -"Cash Or Solvent Credits"
Michigan Law Review
The plaintiff drew an out of town draft and deposited it with the A bank for collection. The A bank sent the draft to its correspondent, B bank, to collect and make return when actually paid. The B bank collected the amount of the draft and, according to a custom between the two institutions, credited the account of the A bank and sent them a notice of collection. On the very day this notice was received the B bank closed its doors. A statute provided that items deposited for collection should be credited subject to final payment in cash or …
Banks And Banking - Application Of Bank Collection Code To National Banks
Banks And Banking - Application Of Bank Collection Code To National Banks
Michigan Law Review
Defendant national bank received from an out-of-town correspondent bank for collection a check drawn on another local bank. Through the local clearing house this check was presented and paid, whereupon defendant bank sent to its correspondent its draft in payment. Before presentment of the draft, however, defendant bank failed and the draft was dishonored. In an action by the payee of the check, from whom the correspondent bank had taken it, to impress a trust on the assets of defendant bank, it was held, reversing the lower courts, that the state statute (the Bank Collection Code) which was applied …
Bills And Notes -"Massachusetts" Trust- Liability Of Trustee Under Section 20 Of The N. I. L
Bills And Notes -"Massachusetts" Trust- Liability Of Trustee Under Section 20 Of The N. I. L
Michigan Law Review
Plaintiff sued the trustee of a realty business trust in his personal capacity on three notes signed by him as follows: "Robert J. Smith, Trustee of Fair Haven Estates." The notes were given in payment of the purchase price of certain land sold by the plaintiff to the defendant, which was secured by a purchase money mortgage. The indenture of trust under which the business was carried on, and which was recorded, provided that all persons who did business with the organization should look only to the trust funds for reimbursement, and neither the trustee nor the shareholders should be …
Bills And Notes - Bad Faith On Part Of Pledgee Taking Bonds
Bills And Notes - Bad Faith On Part Of Pledgee Taking Bonds
Michigan Law Review
Defendant, a Wisconsin firm, issued certain bearer bonds secured by a mortgage held by the T corporation, as trustee. A provision in the mortgage defining the duties of the trustee in the disposition of bonds delivered to it was incorporated into the bonds by reference. The trustee being insolvent, plaintiff bank, as pledgee of some of the bonds taken to secure personal loans to the trustee, petitioned the referee in bankruptcy for permission to sell them, claiming to be a bona fide pledgee for value. Held, since federal courts are bound to follow state decisions interpreting state statutes declaratory …
Banks And Banking--Collections Of Out-Of-Town Items--Priorities On Insolvency Of Correspondent Bank
Banks And Banking--Collections Of Out-Of-Town Items--Priorities On Insolvency Of Correspondent Bank
Michigan Law Review
In settlement of an adverse balance on the day's clearings, D bank gave to plaintiff a draft on its metropolitan correspondent. D bank then became insolvent, and on presentment the drawee refused to pay, though D bank had sufficient funds on deposit to cover the draft. The receiver allowed plaintiff's claim as a general one. There was no indication that D knew it was insolvent at the time it issued the draft. Plaintiff then brought suit against the receiver to establish a preferred claim. Held, that the issuance of the draft created a trust fund, and plaintiff bank was …
Bills And Notes-Checks-Delay In Presenting For Payment Where Payee Has Deposited In Out-Of-Town Bank
Bills And Notes-Checks-Delay In Presenting For Payment Where Payee Has Deposited In Out-Of-Town Bank
Michigan Law Review
The defendant in Kenosha, Wisconsin, drew a check on a Kenosha bank and mailed it to the plaintiff in Chicago. Fallowing the practice of many other business houses in Chicago to avoid a high collection charge, the plaintiff, instead of depositing the check in Chicago, sent it by air mail the day after its receipt, for deposit and collection to the plaintiff's bank in Minneapolis, which collected the check through the Federal Reserve Bank in Chicago. The result was presentment to the drawee bank at least one business day later than would have been the case if the check had …
Bills And Notes-Alteration By Collateral Written Agreement
Bills And Notes-Alteration By Collateral Written Agreement
Michigan Law Review
Defendant was accommodation indorser on two of four notes executed at the same time with different maturity dates. As part of the same transaction, but unknown to the defendant, the maker, two other indorsers, and the payee, plaintiff in the cause, entered into an agreement in writing whereby the maturity of the unpaid notes would be accelerated on default as to any due. Held, in, an action on the notes, that instruments simultaneously executed and referring to the same subject matter are to be construed together, and the effect of such integration here was to bring about an alteration …
Bills And Notes - Execution Of Instruments By Agents - Liability Under N.I.L.
Bills And Notes - Execution Of Instruments By Agents - Liability Under N.I.L.
Michigan Law Review
The liability of parties on negotiable instruments executed by agents or representatives is a matter which has not been satisfactorily settled by the cases under the N.I.L., due partly to the ambiguity of the statute itself and partly to the obstinate refusal of some courts to adopt the approach of the ordinary business man. Under the law merchant the agent ran a great risk of personal liability in executing a negotiable instrument unless he was careful to spell out that he was signing for a named principal as agent only. If he merely added to his name the phrase "agent …
Bills And Notes - Excuse Of Presentment For Payment
Bills And Notes - Excuse Of Presentment For Payment
Michigan Law Review
The X bank at which a certificate of deposit was payable was in the hands of a receiver at the time of maturity of the certificate. Plaintiff, holder, sued defendant on his liability as an indorser. Defendant claimed a discharge of his liability because of plaintiff's failure to present for payment to the maker (X bank) at maturity. Held, plaintiff was excused from presenting for payment. O'Neal v. Clark, (Ala. 1934) 155 So. 562.
Banks And Banking - Incidence Of Loss Resulting From Payments By Drawee Bank Not In Accordance With Depositor's Orders
Michigan Law Review
The ordinary commercial deposit normally results in a debtor-creditor relationship between bank and depositor. It is familiar doctrine that in this situation a duty rests upon the bank to honor its creditor's properly drawn orders to the extent of the depositor's balance. Payments by the bank, ostensibly according to such orders, but which are in truth not in accordance therewith, are the bank's loss at least so far as the supposed drawer is concerned. In bookkeeping terms this means that payments by the bank not strictly in pursuance of genuine orders ordinarily cannot be charged against the account of the …
Evidence-Use Of Photostatic Copies In Proving Books Of Account-Model Statute
Evidence-Use Of Photostatic Copies In Proving Books Of Account-Model Statute
Michigan Law Review
Private records, books of account, and documentary evidence in general present an evidenciary problem in litigation if one, in proving his case, must use the records and books of account of a third person outside the jurisdiction of the forum. A subpoena duces tecum is limited to the boundaries of the state of the forum. Written evidence in the hands of a third person outside the state where the litigation is being pursued can only be obtained by permission of the owner, and even if the owner does permit the transportation of records and books of account necessary to the …
Banks And Banking - Priorities On Insolvency Of Bank
Banks And Banking - Priorities On Insolvency Of Bank
Michigan Law Review
Plaintiff, clerk of court, deposited in a reputable bank a compensation award known by the bank to be such, pending review in an appropriation proceeding. On the insolvency of the bank, plaintiff sued for the immediate payment of the deposit in full, claiming a preference because: (a) "a special deposit, constituting a trust, was created"; (b) the unauthorized and, consequently, unlawful deposit-of any trust fund in a bank which knows the nature of the fund impresses a trust on the bank. Held, plaintiff was not entitled to a preference over the other depositors in the bank. Busher v. Fulton …
Bills And Notes - Holder In Due Course -Antecedent Obligation As Value
Bills And Notes - Holder In Due Course -Antecedent Obligation As Value
Michigan Law Review
X, entrusted with the safekeeping of negotiable bearer bonds of A and B, stole A's bonds. On A's request for his securities, X, purporting to deliver what was requested, delivered B's bonds. The wrongdoing was not discovered for over a year. B then sued A to recover the bonds. Held, B may recover, for A is not a purchaser for value. State ex rel. Sorenson v. Nebraska State Sav. Bank, (Neb. 1934) 255 N. W. 52.
Bills And Notes - Rule Of Decision In Federal Courts - Application Of Swift V. Tyson To The Uniform Negotiable Instruments Law
Michigan Law Review
Plaintiff, the transferee after maturity of certain promissory notes made by defendant in Florida, sued in his own name on the notes in the Federal District Court for Pennsylvania. Under the Pennsylvania practice, an assignee after maturity could not sue in his own name unless the notes were negotiable. The District Court concluded that the notes, which contained a provision for interest on overdue interest payments, were non-negotiable and sustained a demurrer. This was affirmed by the Circuit Court of Appeals for the Third Circuit on the ground that although the Florida Negotiable Instruments Law was the law of the …
Banks And Banking-Liability On Payment Of Incomplete Check
Banks And Banking-Liability On Payment Of Incomplete Check
Michigan Law Review
Plaintiff's agent signed a check in blank, and placed it in a safe. A thief broke into the safe, removed the check and other papers, inserted "Cash'' as the payee and $486.50 as the amount, and was paid by the drawee bank. In an action against the bank for charging plaintiff's account with this item, the court held that as between the parties, because the bank was negligent in paying the check without sufficient identification, it must bear the loss. Joseph Heimberg, Inc. v. Lincoln Nat. Bank, (N. J. L. 1934) 172 Atl. 528.
Vendor And Purchaser - Mortgaging Of Land By Vendor - Effect On Vendee's Duty To Continue Installment Payments
Michigan Law Review
Plaintiffs agreed in writing to purchase a tract of land from the defendant, the purchase price to be paid in stated installments or in full at any time at the option of the plaintiffs. Two days after the formation of the contract the defendant mortgaged the land, and about eight months later placed a second mortgage on it. Plaintiffs denied having any knowledge of the mortgages until attempts were made to foreclose them. Previous to this, however, they had defaulted in their payments. In an action in general assumpsit to recover the amount of the installments paid it was held …
Bills And Notes-Bonds Payable At Office Of Trustee Which Becomes Insolvent After Deposit According To Agreement But Before Bonds Presented, Ralph W. Aigler
Bills And Notes-Bonds Payable At Office Of Trustee Which Becomes Insolvent After Deposit According To Agreement But Before Bonds Presented, Ralph W. Aigler
Michigan Law Review
By the terms of a trust mortgage securing a large bond issue the debtor agreed that it would punctually pay the principal and interest of every bond according to the terms of the bond and coupons and would "deposit the necessary funds for such purpose with the trustee at least five days prior to the respective due dates." For the maturities of March 1st and September 1st, 1931, the requisite funds were deposited. Plaintiff's coupons of March and his bonds and coupons of September were not presented on the due dates and not until after the trustee had failed and …