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Full-Text Articles in Law
Banks And Banking - Bank Collection Code - Preference For Certified Check On Drawee Bank's Insolvency
Michigan Law Review
The petitioner accompanied a bid on construction work with two certified checks drawn on the M Bank and payable to the government. On rejection of the bid the checks were returned, but in the meantime the drawee bank had been closed. The petitioner presented the checks to the receiver of the defunct bank who refused to honor them as preferred claims. An Illinois statute provided that when a bank has presented to it for payment an item drawn upon such bank, and such bank shall fail after having charged such item to the account of the drawer but without having …
Banks And Banking -- Relation Of Bank To Depositor Of Checks Unqualifiedly Indorsed -- Set-Off Against A Failing Correspondent Bank
Michigan Law Review
Checks drawn on the M bank of another city were deposited by the holders in the D bank pursuant to an agreement that "in receiving and handling items for deposit or collection . . . this bank acts only as depositor's collecting agent and assumes no responsibility beyond the exercise of due care. . . . It may decline to honor or pay checks drawn against conditional credits." The checks were unqualifiedly indorsed. The D bank credited each depositor's account and forwarded the checks to M bank which charged the accounts of the drawers and sent its draft to D …
Banks And Banking - Public Moneys As Preferred Claims
Banks And Banking - Public Moneys As Preferred Claims
Michigan Law Review
The State claims a preference in the assets of an insolvent bank on the basis of sovereign prerogative. Held, that the State has no preference now because the prerogative right has been abrogated: first, by the passing of a comprehensive state banking law; and second, by a constitutional provision giving bill holders of insolvent banks preference in payment over all other creditors. Fry, State Treasurer v. Equitable Trust Co., 264 Mich. 165, 249 N. W. 619 (1933). (Potter and McDonald, JJ., dissenting).