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- Negotiable Instruments Law (7)
- Michigan (6)
- Checks (4)
- Indorsements (4)
- Liability (4)
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- Insolvency (3)
- New York (3)
- Fiduciary duties (2)
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- New Jersey (2)
- Obligations (2)
- Promissory notes (2)
- Transfers (2)
- Accelerating provisions (1)
- Acceleration provisions (1)
- American Surety Co. v. Greek Catholic Union (1)
- Baach v. Bank of Pocahontas (1)
- Bank superintendents (1)
- Barsness v. Tiegen (1)
- Bischoff v. Yorkville Bank (1)
- Blank notes (1)
- Bookkeeping (1)
- Bronson v. Stetson (1)
- California (1)
- Chase Nat. Bank v. Healy (1)
Articles 1 - 29 of 29
Full-Text Articles in Law
Bills And Notes - Promissory Notes - Negotiability At Common Law
Bills And Notes - Promissory Notes - Negotiability At Common Law
Michigan Law Review
Defendant contractors left a check for materialmen in the hands of a third party who appropriated the check to his own use and then, in lieu thereof, gave his own note to the materialmen who endorsed it to a bank and credited the contractors with the amount of the note. In an action by the materialmen against the contractors for services rendered and materials furnished, held, such acceptance and negotiation constituted a payment of the materialmen's claims. Riedman v. Macht, (Ind. App. 1932) 182 N. E. 87.
Bills And Notes - What Constitutes A Reasonable Time In Presenting A Check For Payment
Bills And Notes - What Constitutes A Reasonable Time In Presenting A Check For Payment
Michigan Law Review
Defendant delivered to the plaintiff, at about 10 o'clock A. M., a check drawn on the B bank. The next morning at 10:30 o'clock the plaintiff's agent went to drawee to cash the check. As there was "a run" being made on the bank that day, the agent was forced to stand in line. After waiting from 10:30 o'clock in the morning to 1 o'clock in the afternoon, he left without cashing the check. The next day the bank failed to open its doors. In an action by the plaintiff to recover the debt covered by the check, the defendant …
Bills And Notes - Acceleration Clause As Affecting Negotiability
Bills And Notes - Acceleration Clause As Affecting Negotiability
Michigan Law Review
Defendant was sued on a note containing, among other acceleration clauses, a provision that if any holder deemed himself insecure at any time, the note should become immediately due and payable. Appealing from a summary judgment against him, the defendant contended that the instrument was nonnegotiable. Held, the acceleration provisions in the instrument did not destroy its negotiability. Dart National Bank v. Burton, 258 Mich. 283, 241 N. W. 858 (1932).
Banks And Banking - Liability Of Stockholders For Debts In Insolvencies Occurring After Transfer Of Stock, Warren W. Kennerly
Banks And Banking - Liability Of Stockholders For Debts In Insolvencies Occurring After Transfer Of Stock, Warren W. Kennerly
Michigan Law Review
The effect of the holding of the Sanders case is of special interest at the present time because of the large number of recent bank failures. This decision may possibly result in former stockholders of Illinois state banks and the heirs of former stockholders being subjected to an assessment on stock that was disposed of several decades ago. The holding is applicable only to state banks, since national banks are not subject to state regulation. It would not be surprising if this Illinois holding should be followed in Nebraska, since the latter state has already based some of its rulings …
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 …
Banks And Banking - Preferred Claims Of Savings Depositors - Set-Offs
Banks And Banking - Preferred Claims Of Savings Depositors - Set-Offs
Michigan Law Review
Members of the Michigan bar who have had to deal with perplexing receivership problems, growing out of the many recent bank failures, should welcome the case of Reichert v. Farmers & Workingmens Savings Bank, 257 Mich. 500, decided April 4, 1932. It involves twelve important questions in banking law, certified from the Jackson circuit court. The answers of the supreme court to these questions should serve to settle the law for the benefit of receivers and their counsel for years to come.
Mortgages -Assignment In Good Faith After Maturity Cuts Off Prior Latent Equities
Mortgages -Assignment In Good Faith After Maturity Cuts Off Prior Latent Equities
Michigan Law Review
M executed a negotiable note payable to the order of P, secured by a mortgage. After maturity, P assigned the note and mortgage without his indorsement to X for value. Y procured an assignment of these from X by fraud and in turn assigned them to Z, a purchaser without notice and for value. In Z's suit to foreclose the mortgage, X intervened, demanding the delivery of the same to himself. Held, Z's bona fide purchase cut off X's latent equity. Frank v. Brown, 255 Mich. 415, 238 N. W. 237 (1931).
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 …
Bills And Notes - Authority To Fill In Blanks - Effect Of Death Of Maker
Bills And Notes - Authority To Fill In Blanks - Effect Of Death Of Maker
Michigan Law Review
H gave W his note in blank with authority to fill it in at $50,000 when she wished, the note representing W's interest in their joint property. W filled in the blanks after H's death and sued H's estate on the note. Held, the authority to fill in was not revoked by H's death, for it was a power coupled with an interest. In re Ferrara (N. J. 19 3 l) 156 Atl. 265.
Bills And Notes-Holders In Due Course-Good Faith Taker
Bills And Notes-Holders In Due Course-Good Faith Taker
Michigan Law Review
The plaintiff bank sued the defendant maker on his promissory note which with several others had been given as collateral by the payees for a loan made to them by the bank. The defendant alleged fraud and that the bank did not take in good faith as required by the Uniform Negotiable Act, Gen. Laws 2921 (N. I. L., sec. 52) because of the following circumstances: inconsistent property valuation reports, knowledge of the slight financial responsibility of one of the makers of the note, insufficient investigation of financial status of one of the guarantors and the lack of a financial …
Bills And Notes - Waiver Of Presentment And Notice Of Dishonor
Bills And Notes - Waiver Of Presentment And Notice Of Dishonor
Michigan Law Review
The defendant was an accommodation indorser on a demand note without interest. Almost three years after date of the note the holder notified defendant that repeated attempts had been made to secure payment from the maker, but without avail, and that the defendant was expected to pay. This resulted in a conversation between holder and defendant in which defendant indicated that it was not convenient for him to pay the note, and some discussion occurred as to the defendant's giving collateral security and an effort on his part to get some protection from the maker, the holder allowing the note …
Trusts -- Self-Dealing Of The Trustee -- Right To Look Through The Corporate Entity
Trusts -- Self-Dealing Of The Trustee -- Right To Look Through The Corporate Entity
Michigan Law Review
One Northrop was appointed by the court as guardian, receiving $2,500 which he deposited in defendant bank of which he was the president, the general manager, and of which he was in complete control. Subsequently he exchanged this deposit for a mortgage owned by the bank. The bank became insolvent, and plaintiff, as substituted trustee, brought this action to have a preference adjudged out of the bank's assets in favor of the ward. Held, plaintiff could ignore the mortgage transaction but could only claim as a general creditor of the bank. Ottawa Banking and Trust Co. v. Crookston State …
Trusts - Tracing Of Assets - Preference
Trusts - Tracing Of Assets - Preference
Michigan Law Review
Public funds were unlawfully deposited in the insolvent bank. At the time the bank closed the cash in its own vault was less than the amount of public funds deposited but it did have, at the time of closing and at all times before, deposits in correspondent banks which, taken with the cash in its own vault, exceeded the amount of the public funds unlawfully deposited. Held, that the unlawful deposit of the public funds, the bank knowing them to be public funds, created a trust of those funds in the hands of the bank, which trust was impressed …
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 …
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 …
Bills And Notes-Waiver Of Demand And Notice In Printed Form
Bills And Notes-Waiver Of Demand And Notice In Printed Form
Michigan Law Review
The defendant, Addison, who was payee of a promissory note, indorsed it "Pay to F. Main, Wm. Addison & Son." The indorsement was directly below a printed waiver in the usual form. Apparently the only defense was failure of demand and notice. Held, the indorser must be presumed to have waived these defenses. Krenerick v. Horton, 254 Mich. 12, 235 N. W. 810 (1931).
Public Officers - When Do They Owe A Duty To A Particular Individual Rather Than A Class?
Public Officers - When Do They Owe A Duty To A Particular Individual Rather Than A Class?
Michigan Law Review
The plaintiff, a stockholder in the Bank of the United States, sued the defendant, superintendent of banks for New York State, for losses sustained when the bank failed as a result of the defendant's failure to perform certain acts required by statute. Held, the defendant, being charged by statute with a duty to all the people of the state, owed no duty to the stockholders as individuals, and was not liable to the plaintiff. Walker v. Broderick, 252 N. Y. S. 559 (1931).
Bills And Notes - Negotiability - Accelerating Factors Extraneous To Instrument
Bills And Notes - Negotiability - Accelerating Factors Extraneous To Instrument
Michigan Law Review
Plaintiff was a good faith purchaser of a trade acceptance payable at a fixed date with a provision for acceleration at the option of the holder [1] " . . . upon the acceptor hereof suspending payment, [2] giving a chattel mortgage, [3] suffering a fire loss, [4] disposing of his business or [5] failing to meet at maturity any prior trade acceptance." In an action by the plaintiff after the fixed date of maturity, defendant-acceptor contended that accelerating provisions 3 and 5 rendered time of payment uncertain and the instrument non-negotiable. Held, the trade acceptance was negotiable. People's …
Suretyship - Revocation By Death
Suretyship - Revocation By Death
Michigan Law Review
In consideration of a promise on the part of the vendor in a land contract to accept from the purchaser the first four installments of interest in the form of four notes, the decedent agreed in writing to indorse said notes and become responsible to the vendor for their payment. The surety died before the first of the notes was to be made and indorsed. A claim was made against the estate of the surety on this writing, the trial judge finding for the estate on the ground that there was no competent evidence from which damage might be determined; …
Banks And Banking -Sending Items Directly For Collection - Liability For Accepting A Draft In Payment
Michigan Law Review
The plaintiff deposited two checks, drawn on the X bank, with the A bank, a member of the B Federal Reserve Bank. The A bank sent the items for collection directly to the defendant Federal Reserve Bank of Minneapolis, which forwarded them directly to the X bank. After marking the checks paid, the X bank remitted to the defendant its draft on the Y bank. The draft was dishonored because of the intervening insolvency of the X bank; and the checks were accordingly charged back by the defendant to the B bank ( of which the A bank was a …
Banks And Banking - Statutory Liability Of Directors Of Insolvent Bank For Issuing Renewal Certificate Of Deposit
Michigan Law Review
The plaintiff renewed certain certificates of deposit with the defendant bank. When each renewal was issued the bank was "unsafe or insolvent," and the directors knew or had good reason to know it to be so. This was not the situation when the original certificates were issued. The plaintiff based his right of recovery from the directors of the bank upon Gen. Stat. 1923 (2 Mason, 1927) sec. 10407, which makes it a penal offense for the officers or directors of a bank to receive deposits knowing the bank is "unsafe or insolvent." Plaintiff recovered in the lower court. Held …
Bills And Notes - Is One Assuming Liabilities To The Creditors Of His Transferor A Holder In Due Course
Michigan Law Review
The plaintiff entered into an agreement whereby it was to receive all the assets of an insolvent bank as consideration for the assumption of certain specified liabilities. Among the assets was a note upon which the plaintiff is now suing a prior indorser. Although it was the intention of the defendant to indorse as agent in accordance with the request of the insolvent bank, on the face of his endorsement he indorsed individually. Held, that since the plaintiff was not a holder in due course, the note was subject to the same defenses in the hands of the plaintiff …
Bills And Notes - Negotiation - Implied Warranties
Bills And Notes - Negotiation - Implied Warranties
Michigan Law Review
In a suit by the payee against the maker of a note, the defense was a failure of the consideration, i.e., several assigned drafts had been paid at the time of the assignment. It did not appear whether these unendorsed drafts were order or bearer instruments. Held, under the Negotiable Instruments Law this is not a failure of consideration because the assignor warrants only facts within his knowledge, and evidence of knowledge of these facts by the assignee is admissible to rebut the implied warranty. Queensboro Nat. Bank. v. Kelly, 48 F.(2d)574 (1931).
Bills And Notes - Price V. Neal - Culpability Of Holder Which Permits Drawee Who Has Paid To Recover
Bills And Notes - Price V. Neal - Culpability Of Holder Which Permits Drawee Who Has Paid To Recover
Michigan Law Review
In an action by the bank to recover money paid on a check from the holder bank which had cashed the check for an unknown payee without requiring identification, and had then presented it to the drawee bank for payment, the drawer's name being forged, it was held that the drawee bank could recover, on the ground that the holder's negligence had lulled the drawee into indifference as to the drawer's signature when paying the check. Louisa Nat. Bank v. Kentucky Nat. Bank (Ky. 1931) 39 S.W. (2d) 497.
Banks And Banking - Joint Deposits
Banks And Banking - Joint Deposits
Michigan Law Review
Funds originally belonging to the wife were deposited in a joint account for the husband and wife, it being stipulated that the money was to be withdrawn upon the order of both, and that, upon the death of either, the survivor should have an absolute right to the balance. The husband died and his administrator brought an action to recover one-half of the funds. Held, the money belonged to the wife on any theory of the case which might be developed. Hollingsworth v. Hollingsworth (Iowa 1931) 235 N.W. 726.
Bills And Notes-Payee Of Note Is Holder In Due Course Unless Contrary Appears
Bills And Notes-Payee Of Note Is Holder In Due Course Unless Contrary Appears
Michigan Law Review
Defendant, who had jointly signed (ostensibly as maker) a note containing the words, "I promise to pay," was held not entitled to show by parol evidence that he was an accommodation indorser, under 2 MICH. COMP. LAWS 1929, secs. 9249, 9266 (N. I. L., sec. 17), and 9309 (N. I. L., sec. 60), the court saying, by way of dictum, that, in the absence of a contrary showing, the payee named in a promissory note payable to order is a holder in due course. Price v. Klett (Mich. 1931) 238 N.W. 253.
Bills And Notes - Restrictive Indorsement
Bills And Notes - Restrictive Indorsement
Michigan Law Review
Plaintiff sued defendant to enforce the collection of two promissory notes which defendant indorsed in blank to X Bank. X Bank indorsed the notes to "Y Bank, as trustee." Y indorsed the notes to plaintiff. All the indorsements were before maturity and for value. Held, on the pleadings, that the order overruling the demurrer to the declaration be sustained. In a concurring opinion, Brown, J., stated that an indorsement to a corporation or person with the words, "as trustee," after the name is not a restrictive indorsement within the meaning of the Uniform Negotiable Instruments Law, sec. 6796, 7, …
Bills And Notes - Estoppel As Against Bona Fide Purchaser Of Non-Negotiable Chose
Bills And Notes - Estoppel As Against Bona Fide Purchaser Of Non-Negotiable Chose
Michigan Law Review
Plaintiffs bought some interim certificates (at that time non-negotiable in New York), and delivery was made to them. Because of inability to make payment that day, they asked the vendor to send a runner for the certificates, and when a person appeared asking for the amount due the vendor, plaintiffs' cashier gave him the certificates. Shortly thereafter the proper runner arrived, and plaintiff's at once gave notice of the theft in newspapers and otherwise. Some of the stolen certificates were pledged with defendant who acted in good faith in taking them. The defense to this suit for recovery of the …