Law Commons^™

Bills And Notes-Discharge-Intentional Destruction Due To Mistake As A Discharge, Richard S. Weinstein S.Ed.

Michigan Law Review

The holder of sixteen bonds issued by defendant destroyed the bonds believing them to be worthless after they had been in default as to both principal and interest for six years. Ten years later the defendant went into bankruptcy for reorganization and the holder learned that under the plan of reorganization the bonds were exchangeable for $400 in cash and $600 in preferred stock. When defendant refused to recognize the indebtedness even though the holder tendered an indemnity bond against wrongful payment, the holder instituted suit to recover the value of the bonds. The lower court denied relief to the …

Gifts--Banking--Gift Of Joint Savings Bank Deposits, Ira M. Price, Ii

Michigan Law Review

A, the mother of B, transferred three savings bank deposits from her sole account to the account of "A or B-either or survivor." Two of the depositors' signature cards contained this language: ''We hereby certify that this account and all moneys to be credited to it belong to us as joint tenants, and will be the absolute property of the survivor of us." There was evidence that one of the reasons for A's transferring her deposits to the joint account was to enable B to draw money therefrom for A while A was in the …

Criminal Law And Procedure - Interpretation Of Statute, Michigan Law Review

Michigan Law Review

Convicted of the statutory crime of falsely uttering a bank check, defendant appealed on the ground that the instrument in question was a promissory note. It was in appearance and form a check except for the substitution of "will pay" for "pay" and the addition of the words "payable at" before the name of the bank. Held, affirmed, the court construing the instrument as a check. State v. Doudna, (Iowa, 1939) 284 N. W. 113.

The Maturity Of Certificates Of Deposit And Promissory Notes Payable On Demand, Orrin B. Evans

Michigan Law Review

In one form or another a dozen cynics have voiced the sentiment that "speech exists to conceal thoughts." Perhaps because language is too intimately integrated with their livelihood, the lawyers have not generally admitted the assertion. However, in the interpretation of written instruments their brethren on the bench have at times so far disregarded the literal meaning of the words under consideration that one must suspect they secretly approve.

Promissory notes "payable on demand" furnish an illustration. Many cases testify that the true intention of the maker is to create an obligation due immediately and that an action to collect …

Banks And Banking - Trusts - Special Deposits - Agreement Between Depositor And Bank, Robert E. Sipes

Michigan Law Review

During a period of widespread bank failures, plaintiff corporation ceased depositing its funds with the defendant bank. To maintain the public's impression that the plaintiff was a regular customer of the bank, an agreement was entered into by the bank and the plaintiff whereby the bank was appointed "agent" of the plaintiff to collect and remit promptly money due plaintiff. Branch offices of the plaintiff deposited money under this agreement to be transmitted to the plaintiff. When the bank failed with some of this money still in its hands, plaintiff sought to be allowed a preferred claim. Held, the …

Bills And Notes - False Impersonation - Effect Of Absence Of Prior Negotiations With Impostor, Edward D. Ransom

Michigan Law Review

The plaintiff obtained a draft drawn on defendant bank with the plaintiff as payee, and indorsed by her in blank. The draft was for payment of a condemnation award to be sold at a discount through a broker. The plaintiff's husband, acting as her agent, went to the broker's office with his attorney. A man came in and was introduced, by one acting as his attorney, as Harry Wolter, the owner of the award. Thereupon plaintiff's husband handed the draft to his attorney, who wrote over the blank indorsements "pay to the order of Harry Wolter." There were no further …

Bills And Notes - Qualified Indorsement - By Assignment Of "Right, Title And Interest'', Michigan Law Review

Michigan Law Review

Defendant, payee of a promissory note, transferred it by writing on the back, "For value received, I hereby assign all my rights, title and interest to the within note .... " Held, defendant's indorsement was qualified, and she was not liable for its payment. Fecko v. Tarczynski,. 281 Mich. 590,275 N. W. 502 (1937).

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 …

Bills And Notes - Post-Dated Checks - Criminal Liability

Michigan Law Review

The defendant was indicted for violating a statute which prohibited the drawing of a check with knowledge that funds were insufficient for payment. (Laws of S. D., 1923, c. 121.) The statute provided for abatement of any criminal prosecution upon the defendant's showing that he had an account with the drawee bank thirty days before the check was delivered and had no intent to defraud, and also paid the amount of the check and costs. It was also provided that the statute was inapplicable if the drawee honored the check. The defendant had drawn what is known as a post-dated …

Trusts-Devices For Defeating Rights Of Creditors

Michigan Law Review

Attempts to protect property rights from the claims of creditors are faced at common law with the initial objection that restraints on the power of alienation are wholly ineffective. An exception has been recognized in this country in the case of equitable interests for life or for years. This exception, criticized severely at the time it was first recognized, has established itself in the law of most states in this country, though rejected in two jurisdictions.