Law Commons^™

Banks And Banking - Deposit Of Trust Funds In Individual Account Of Trustee - Liability Of Depositary

Michigan Law Review

Committee for an incompetent was directed, by the court order appointing him, to deposit in X bank all funds which might come into his possession. In violation of this order he deposited checks payable to himself as committee in his individual account in the defendant bank. Plaintiff, as substituted committee, sued the depositary for alleged diversions by the original committee, on the theory that the defendant aided the diversions by accepting the deposit of trust funds in the individual account of the committee. Held, under the rule of Bischoff v. Yorkville Bank defendant bank is not liable for the …