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Banking and Finance Law

University of Michigan Law School

1932

Michigan

Articles 1 - 6 of 6

Full-Text Articles in Law

Bills And Notes - Acceleration Clause As Affecting Negotiability Dec 1932

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 - Preferred Claims Of Savings Depositors - Set-Offs Jun 1932

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 Jun 1932

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).


Trusts - Tracing Of Assets - Preference Apr 1932

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 …


Suretyship - Revocation By Death Mar 1932

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; …


Bills And Notes-Payee Of Note Is Holder In Due Course Unless Contrary Appears Jan 1932

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.