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Banking and Finance Law

Michigan Law Review

Journal

1937

Articles 1 - 10 of 10

Full-Text Articles in Law

Bills And Notes - Execution By Uauthorized Representative - Effect Of Knowledge By Payee, Erwin B. Ellmann Dec 1937

Bills And Notes - Execution By Uauthorized Representative - Effect Of Knowledge By Payee, Erwin B. Ellmann

Michigan Law Review

Payee accepted defendant's promissory note, executed as guardian, and agreed not to hold him personally accountable. Though familiar with all material facts, the parties mutually mistook defendant's authority to bind the estate of his ward, and when such lack of authority was discovered, plaintiff sued on the instrument for personal judgment. Held, the maker is not liable, since Section 20 of the Negotiable Instruments Law will not be allowed to override the intention of the parties declared at the time of issuance of the instrument.Annis v. Pfeiffer, 278 Mich. 692, 271 N. W. 568 (1937).

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Mortgages - Deed In Lieu Of Foreclosure - Validity, Elbridge D. Phelps Nov 1937

Mortgages - Deed In Lieu Of Foreclosure - Validity, Elbridge D. Phelps

Michigan Law Review

Depression years have brought to the fore a question much controverted in the early law, but now said to have become settled. That question regards the effect and efficacy of a conveyance of the mortgaged land, or a transfer of the equity of redemption, by the mortgagor to his mortgagee. It seems to have been cheerfully assumed by some lawyers, and by laymen in general, that in the absence of liens subsequent to the mortgage, the procedure is perfectly safe and proper in every case. It is the purpose of this discussion, however, to point out certain dangers inherent in …

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Mortgages - Subrogation Of One Whose Loan Is Used To Pay A Senior Mortgage, Theodore R. Vogt Nov 1937

Mortgages - Subrogation Of One Whose Loan Is Used To Pay A Senior Mortgage, Theodore R. Vogt

Michigan Law Review

S mortgaged the property in question to U, then conveyed the land and certain water rights to H, who gave a second mortgage on the land to M. Thereafter H conveyed the land and water rights to F, who borrowed from Z funds to retire the first mortgage, giving to Z a mortgage which it was agreed between F and Z should be a first mortgage, and transferring to Z the water rights as additional security. In an action by M to foreclose, held, Z was entitled to subrogation to the position of first mortgagee …

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Banks And Banking - Countermand Of Bank Drafts, Michigan Law Review May 1937

Banks And Banking - Countermand Of Bank Drafts, Michigan Law Review

Michigan Law Review

Plaintiff purchased of defendant bank its draft on a correspondent bank, made payable to the order of the plaintiff, who indorsed it to a third party in part payment on a contract. Six days later, deciding that the contract was tainted with illegality, plaintiff requested defendant bank to stop payment on the draft. Defendant refused to do so unless the plaintiff posted a bond. A few days later the draft was paid. Plaintiff sought damages for defendant's refusal. Held, that although defendant bank could have countermanded the draft if it so chose, it was under no duty to do …

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Trusts -Tracing Principles Applicable Where Funds Of Two Or More Cestuis Are Wrongfully Commingled, Michigan Law Review May 1937

Trusts -Tracing Principles Applicable Where Funds Of Two Or More Cestuis Are Wrongfully Commingled, Michigan Law Review

Michigan Law Review

Public funds of a school district, of the village of Vassar, and of ten other municipalities were deposited in defendant bank without securing the deposit bond required by statute. After defendant bank had been declared insolvent, the school district intervened and sought to have the amount of its deposit impressed upon the cash assets of the bank as a trust, on the ground that the bank became a trustee ex maleficio. The total of the illegal deposits was greater than the cash on hand and the credits established in solvent correspondent banks at the time the receiver took over the …

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Basic Monetary Conceptions In Law, Arthur Nussbaum Apr 1937

Basic Monetary Conceptions In Law, Arthur Nussbaum

Michigan Law Review

While in various periods of American legal history American courts have been confronted with problems of a monetary character, the importance and multiplicity of these questions have never been more strongly felt than within the last few years, and there is certainly no indication that this situation will change in the near future. The jural difficulties arising from monetary troubles are unusual, not only because of their financial and social implications, but also because of their theoretical intricacies. No wonder, therefore, that arguments advanced by courts in cases of a monetary nature are very often highly unsatisfactory. Again and again, …

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Banks And Banking - Collections - Trust Or Debt, Michigan Law Review Apr 1937

Banks And Banking - Collections - Trust Or Debt, Michigan Law Review

Michigan Law Review

A certificate of deposit issued by A bank and owned by plaintiff was presented for collection in a routine clearance transaction between defendant bank and A bank. A bank paid for the several items presented with other items and a draft. The draft was dishonored. After both banks closed, defendant bank collected the amount of the draft from A bank as a preferred claim. Plaintiff seeks full payment of the certificate of deposit. Held, payment terminated the agency for collection and gave rise to a debtor-creditor relation, and, for this purpose, payment by draft was equivalent to any other …

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Exemptions - "Implements Of The Debtor's Trade", Jacob L. Keidan Apr 1937

Exemptions - "Implements Of The Debtor's Trade", Jacob L. Keidan

Michigan Law Review

In an action for conversion by wrongful attachment, it was held that printing equipment constituted "implements of the debtor's trade" within the meaning of the exemption statute. Flaxman v. Capitol City Press, 121 Conn. 423, 185 A. 417 (1936).

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Trusts - When Is The Beneficiary Of A Trust A Necessary Party In A Proceeding Involving The Trust Estate, Charles William Allen Feb 1937

Trusts - When Is The Beneficiary Of A Trust A Necessary Party In A Proceeding Involving The Trust Estate, Charles William Allen

Michigan Law Review

Two recent cases present the problem of the power of the trustee to represent the beneficiary in proceedings involving the trust estate. In Hood v. Cannon, arising in South Carolina, the trustee of an estate, upon merger of A bank into B bank, had applied to the probate court for permission to exchange A bank stock, held by the estate, for B bank stock. The court authorized the exchange in an ex parte proceeding to which the beneficiaries were not parties. B bank later failed, and the commissioner of banks brought suit against the defendant, the successor trustee, to …

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Principal And Agent - Imputing Knowledge Of Agent To His Principal, Michigan Law Review Feb 1937

Principal And Agent - Imputing Knowledge Of Agent To His Principal, Michigan Law Review

Michigan Law Review

Harriman, acting for himself, by fraudulent misrepresentation obtained some collateral from the plaintiff. He pledged these securities through a dummy corporation to the Harriman National Bank & Trust Co., of which he was president at that time, and over which he exercised considerable control. The loan was formally approved by the loan committee of the bank. Held, plaintiff could recover his collateral because the agent's knowledge of the fraud was imputed to the bank. Munroe v. Harriman, (C. C. A. 2d, 1936) 85 F. (2d) 493, affirming (D. C. N. Y. 1935) 16 F. Supp. 341.

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