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Articles 61 - 62 of 62
Full-Text Articles in Law
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 …
Suretyship - Release Of Surety
Suretyship - Release Of Surety
Michigan Law Review
Defendant was the surety on a fidelity bond of the treasurer of plaintiff corporation. The principal wrongfully deposited money in X Bank. This bank was about to be closed by the state, but Y Bank proposed to take over the assets and liabilities of X Bank if plaintiff would leave on deposit with them $200,000 for four years without interest. Plaintiff notified two of defendant's officers, but they lacked authority to act, and, prompt action being necessary, the arrangement was concluded without defendant's concurrence. At the end of the four years plaintiff sued defendant for the interest lost by reason …