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Full-Text Articles in Law
Banks And Banking - Holder Of Draft Paid For By Check On Issuing Bank As Preferred Upon Drawer's Insolvency
Michigan Law Review
A depositor received from his bank in exchange for his check a New York draft drawn by the bank payable to a third person. The draft was dishonored because of the insolvency and closing of drawer. After redemption of the draft the depositor sought to establish a preferred claim therefor against the bank's assets. An Ohio statute declared that when there remains unpaid at the time the bank is closed a check drawn by a depositor which has been presented to the drawee bank "for collection and payment," charged to the depositor's account, and a draft issued in payment thereof, …
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 …