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Articles 361 - 390 of 752

Full-Text Articles in Banking and Finance Law

Corporations - Preference Rights On Dissolution, Robert B. Fiske, Jr. S.Ed. Apr 1955

Corporations - Preference Rights On Dissolution, Robert B. Fiske, Jr. S.Ed.

Michigan Law Review

The capital structure of the defendant corporation consisted of class A, class B, and preferred stock. According to the articles of association, the class A stock was entitled to a ten percent dividend before any dividend was paid on the class B. After the class B stock had also received a ten percent dividend, the two classes were to share equally in any further dividends. The charter further provided that on dissolution the holders of the class A stock were entitled to cash to the amount of the par value of their stock before any payment in …

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Municipal Corporations - Validity Of Covenant To Maintain Parking Meters In Bond Issue To Finance Off-Street Parking Facilities, William G. Cloon, Jr. S.Ed. Apr 1955

Municipal Corporations - Validity Of Covenant To Maintain Parking Meters In Bond Issue To Finance Off-Street Parking Facilities, William G. Cloon, Jr. S.Ed.

Michigan Law Review

An act of the state legislature authorized the issuance of municipal bonds to finance off-street parking facilities. The city was authorized to pledge revenue from existing on-street parking facilities to service the bonds but was to retain the right to change the location of the parking meters and other on-street facilities for enumerated reasons so long as the change did not materially lessen the revenue to be derived from those facilities. Acting in pursuance of authority granted by the enabling act, the city covenanted to maintain its parking meters subject to the reservations required by the act. In an action …

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Responsibilities In The Transfer Of Stock, Francis T. Christy Mar 1955

Responsibilities In The Transfer Of Stock, Francis T. Christy

Michigan Law Review

During the past few years there have been increasing efforts on the part of a number of organized groups to establish statutory definitions of the responsibilities of corporations and their transfer agents in the transfer of stock. Among these groups are the Commission on Uniform State Laws, which sponsored the Uniform Fiduciaries Act, the American Law Institute and the National Conference of Commissioners on Uniform State Laws, which have jointly produced the new Uniform Commercial Code, the Committee on Simplification of Security Transfers of the Real Property, Probate and Trust Law Section of the American Bar Association, of which Committee …

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Obligations Of A State-Created Authority: Do They Constitute A Debt Of The State, Elizabeth Gaspar Brown Jan 1955

Obligations Of A State-Created Authority: Do They Constitute A Debt Of The State, Elizabeth Gaspar Brown

Michigan Law Review

Although provisions in a number of state constitutions limit the amount of debt a state may incur state legislatures frequently have attempted to circumvent such limitations. Recent decades have seen increased use of the "authority," set up by the legislature to accomplish a particular objective and given power to issue evidences of indebtedness to finance the objective, repayment to come from the revenues of the authority, with the declaration that the obligations of the authority are not those of the state. The enabling legislation has been challenged as unconstitutional, often on the ground that the obligations of the authority are …

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Bills And Notes - Ficticious Indorsee - Immaterial Alteration, Lawrence N. Ravick S.Ed. Dec 1954

Bills And Notes - Ficticious Indorsee - Immaterial Alteration, Lawrence N. Ravick S.Ed.

Michigan Law Review

Thomas and Betty Gallegos asked defendant bank for a loan to purchase an automobile from Schneider Motors. Defendant gave them a cashier's check for $1,000 payable "To the order of Betty J. and Thomas Gallegos." To assure itself that the check would be used to purchase the car, the bank, before delivering the check to the payees, had them indorse it "to the order of Schneider Motors," signed "Betty J. and Thomas Gallegos." The Gallegoses then went to Schneider Motors, but a partner of that firm refused to accept the check and returned it to Thomas Gallegos. Having taken it …

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Banks And Banking - Validity Of Exculpatory Clauses In Stop-Payment Orders, Lawrence N. Ravick S.Ed. Nov 1954

Banks And Banking - Validity Of Exculpatory Clauses In Stop-Payment Orders, Lawrence N. Ravick S.Ed.

Michigan Law Review

Plaintiff, a depositor in defendant commercial bank, in seeking to stop payment of his check, executed and left with the bank a printed form supplied by the bank, entitled ''Request to Stop Payment of Check." Among the terms of the paper was a provision which constituted a release of the bank from all liability should it pay the check through "inadvertence, accident or oversight." The bank subsequently honored the check and charged its amount against the plaintiff's account. Plaintiff demanded that the defendant refund this amount, but the defendant refused to do so. Plaintiff thereupon brought an action against the …

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Contracts - Usury - Dual Contracts Designed To Evade Usury Prohibitions, Richard W. Young S.Ed. Nov 1954

Contracts - Usury - Dual Contracts Designed To Evade Usury Prohibitions, Richard W. Young S.Ed.

Michigan Law Review

Plaintiff applied to the defendant finance company for a loan of $100. The lender agreed to advance this amount and accordingly required the plaintiff to execute a note in the sum of $114.04 payable in one year and secured by a chattel mortgage on an automobile, but insisted in addition that plaintiff purchase an investment certificate in the amount of the note, issued by the defendant company and bearing percent interest, which certificate was to be paid for in twelve monthly instalments. Contending that the interest thus exacted was usurious, the plaintiff brought suit for cancellation of the note and …

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Banks And Banking-National Banks-Amenability To State Statute Restricting Use Of Word "Savings", Donald M. Wilkinson, Jr. S.Ed. Jun 1954

Banks And Banking-National Banks-Amenability To State Statute Restricting Use Of Word "Savings", Donald M. Wilkinson, Jr. S.Ed.

Michigan Law Review

Defendant, a bank organized under the National Bank Act and transacting business in the State of New York, used the words "saving" and "savings" in various ways in the advertising and conduct of its banking business. The state brought suit, seeking an injunction restraining the use of these words, alleging that in- so using them defendant had violated subdivision 1 of section 258 of the New York Banking Law. In defense, the bank contended that this provision, as it applied to national banks, was unconstitutional as a contravention of federal statutory provisions. The trial court dismissed the complaint on its …

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International Law-Power Of Government-In-Exile To Enact Valid Legislation, John C. Hall S.Ed. Mar 1954

International Law-Power Of Government-In-Exile To Enact Valid Legislation, John C. Hall S.Ed.

Michigan Law Review

After occupying the Netherlands, Germany confiscated bonds of Netherlands nationals and sold them in the black market. Archimedes, an American national, purchased such bonds from a Swiss firm in violation of the Trading with the Enemy Act and executive freezing order. The bonds were placed in a blocked account in the Federal Reserve Bank. A suit by the Netherlands was removed to the New York federal district court and Archimedes was interpleaded. The Netherlands claimed title under a decree made in exile vesting protective title in the Netherlands government. While holding that the complaint stated a cause of action, the …

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Securities - Rights Of Used Car Purchasers Under Trust Receipt Financing, Walter H. Weiner S.Ed. Dec 1953

Securities - Rights Of Used Car Purchasers Under Trust Receipt Financing, Walter H. Weiner S.Ed.

Michigan Law Review

The recent enactment of the Uniform Trust Receipts Act: by the Michigan legislature was an important and much needed revision in the Michigan law of chattel security. Although the UTRA has been referred to as a " . . . perplexing maze of technical phrases ... ," it is submitted that the act contains a clear presentation of the changes which are to be effected, and should go far in freeing the financing of goods in the flow of commerce from some anachronistic shackles. The particular intent of this comment is to explore the impact of the UTRA and other …

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Bills And Notes-Holders In Due Course-Receipt Of Stolen Instruments, David W. Belin Apr 1953

Bills And Notes-Holders In Due Course-Receipt Of Stolen Instruments, David W. Belin

Michigan Law Review

In the course of employment by defendant, X handled large amounts of cash. To facilitate this work, plaintiff gave X access to its banking house, enabling X to steal $5,000 in paper currency. X used the money to repay a shortage in his accounts with defendant, placing the money in the treasury of defendant as a credit to himself and obtaining a receipt from defendant's cashier. Defendant had no knowledge of the theft. Plaintiff sued for the money, claiming defendant was unjustly enriched by the acts of X and had no right to the money. Defendant contended that the pre-existing …

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Chattel Mortgages In Floor Financing-Validity Of Recorded Chattel Mortgage As Against Purchaser In Ordinary Course-Effect Of Certificate Of Title Act When Certificate Retained By Mortgage, Walter H. Weiner S.Ed Apr 1953

Chattel Mortgages In Floor Financing-Validity Of Recorded Chattel Mortgage As Against Purchaser In Ordinary Course-Effect Of Certificate Of Title Act When Certificate Retained By Mortgage, Walter H. Weiner S.Ed

Michigan Law Review

Plaintiff, buyer of an automobile from a used-car dealer, brought suit against the dealer and a bank, to which the dealer had given a duly filed chattel mortgage covering the automobile, to have the mortgage declared invalid as to the automobile in question, and for specific enforcement of the promise by the dealer to deliver the certificate of title to the buyer. The mortgage contained a clause giving the dealer-mortgagor the right to sell automobiles mortgaged to the bank-mortgagee, but the bank retained possession of the certificate of title to the automobile. The Circuit Court in Chancery entered judgment for …

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Banks And Banking-Deposits-Resulting Trusts Under The Contract Theory Of Joint Bank Accounts, Warren K. Urbom S. Ed. Nov 1952

Banks And Banking-Deposits-Resulting Trusts Under The Contract Theory Of Joint Bank Accounts, Warren K. Urbom S. Ed.

Michigan Law Review

A husband carried a bank account in his own name. Subsequently, he and his wife signed a signature card at the bank upon which appeared the following: 'We agree . . . that all funds now, or hereafter, deposited to this account are, and shall be, our joint property and owned by us as joint tenants with right of survivorship, and not as tenants in common; and upon the death of either of us any balance . . . shall become the absolute property of the survivor. The entire account or any part thereof may be withdrawn by . . …

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Bills And Notes-Negligent Conduct By Drawer Preventing His Claim That Drawee Paid On A Forged Indorsement, John S. Slavens S. Ed. Nov 1952

Bills And Notes-Negligent Conduct By Drawer Preventing His Claim That Drawee Paid On A Forged Indorsement, John S. Slavens S. Ed.

Michigan Law Review

X and Y, owners of a joint savings account with the plaintiff bank, delivered their bankbook to Z with a withdrawal receipt signed by both depositors in the amount of $75. Z fraudulently altered the receipt, a form used only in paying directly to a depositor, by raising the amount to $5,000, and then presented the bankbook and altered instrument to a teller employed by plaintiff, asking for $5,000. The teller, unwilling to give Z the money, was then instructed to alter the receipt so as to give it the appearance of a check. Then on behalf of plaintiff, …

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Bills And Notes-Right Of Maker Of Promissory Note To Set-Off In An Action By A Post-Maturity Transferee, Harold S. Lentz S.Ed. May 1952

Bills And Notes-Right Of Maker Of Promissory Note To Set-Off In An Action By A Post-Maturity Transferee, Harold S. Lentz S.Ed.

Michigan Law Review

In an action upon a promissory note by a holder who was a transferee after maturity, the maker sought to set-off collateral claims which he held against the holder's transferor. Section 58 of the Negotiable Instruments Law provides: ''In the hands of any holder other than a holder in due course a negotiable instrument is subject to the same defenses as if it were non-negotiable." Another statute of the jurisdiction allowed set-off of collateral claims against third persons in actions on negotiable instruments. The lower court refused to allow the set-off. On appeal, held, reversed. Section 58 of the …

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Restitution-Unjust Enrichment, Robert L. Sandblom S.Ed. Mar 1952

Restitution-Unjust Enrichment, Robert L. Sandblom S.Ed.

Michigan Law Review

Plaintiff brought an action of assumpsit against defendant national bank on a theory of unjust enrichment. Plaintiff and plaintiff's father were two of the nine directors of defendant bank when the bank holiday was declared in 1933. As a condition to reopening, the Comptroller of the Currency required that unconditional contributions be made to undivided profits in the amount of $32,000. Each director agreed to advance a one-ninth part, with the understanding among themselves that repayment would be made when the bank was able to do so. With the knowledge of the other directors, plaintiff advanced his own share and …

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Bills And Notes-Indorsements-Liability Of Collecting Bank To Drawer For Payment On Forged Indorsement, Richard Darger Jun 1951

Bills And Notes-Indorsements-Liability Of Collecting Bank To Drawer For Payment On Forged Indorsement, Richard Darger

Michigan Law Review

Plaintiff was the drawer of a series of checks which were signed by, an authorized agent because of the fraudulent representation of one of its employees. These checks were never delivered to the payees but were cashed by defendant bank for the guilty employee upon indorsements forged by him. Defendant indorsed the checks and collected thereon from the drawee bank which, in turn, charged the checks to plaintiff's account. Plaintiff discovered the fraud after the statute of limitations had run on any action by plaintiff against the drawee bank. Plaintiff brought this action seeking recovery on the basis of (1) …

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Bills And Notes-Indorsee Taking An Incomplete Instrument As A Holder In Due Course, Cleaveland J. Rice S.Ed. May 1951

Bills And Notes-Indorsee Taking An Incomplete Instrument As A Holder In Due Course, Cleaveland J. Rice S.Ed.

Michigan Law Review

Plaintiff purchased from the payee defendant's note which was blank as to amount, date, and provisions for installment payments. Plaintiff immediately filled up the blanks in accordance with actual authority given by defendant. Held, plaintiff took free of an agreement between defendant and payee that the note was not to be negotiated until completion of work for which note was given, plaintiff having no knowledge of such agreement. First National Bank of Springfield v. Di Taranto, (N.J. Super. Ct., App. Div. 1950) 75 A. (2d) 907.

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Usury And Purchases On Credit, Harold G. Christensen S.Ed. May 1951

Usury And Purchases On Credit, Harold G. Christensen S.Ed.

Michigan Law Review

Defendant purchased goods of the plaintiff on credit, giving his note, secured by a chattel mortgage, for the balance of the purchase price. The total price included a "time price differential" which exceeded the lawful rate of interest computed on the unpaid balance. Defendant defaulted in payment of the note and plaintiff sued to recover the goods. Defendant pleaded that the mortgage and note included usurious interest. Held, there was a bona fide sale on credit and the note was not usurious. Brown v. Crandall, (S.C. 1950) 61 S.E. (2d) 761.

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Bills And Notes-Limitation Of Actions-Running Of The Statute Of Limitations Against The Holder Of A Check, Gordon I. Ginsberg Feb 1951

Bills And Notes-Limitation Of Actions-Running Of The Statute Of Limitations Against The Holder Of A Check, Gordon I. Ginsberg

Michigan Law Review

Defendant issued a check to plaintiff's intestate on July 1, 1942 for services rendered. On April 21, 1943, the payee deposited the check in her bank, but it was returned to her uncollected because the bank on which it was drawn refused to make payment on account of its "stale" date. Nothing further was done to enforce payment of the check during the payee's lifetime, and she died on September 20, 1948. This action on the check was brought by her administrator on July 28, 1949. On appeal from a judgment for plaintiff, held, the action is barred by …

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Bills And Notes-The Meaning Of "Next Business Day", Richard B. Gushée S.Ed. Nov 1950

Bills And Notes-The Meaning Of "Next Business Day", Richard B. Gushée S.Ed.

Michigan Law Review

Two checks, payable to the plaintiff, were forwarded to the defendant drawee for payment on February 13, 1949. After the close of banking hours on February 14, the defendant telegraphed the presenting bank advising that it would not pay the checks. The applicable Illinois statute allowed banks until the end of the "next business day" following the day of presentation to decide whether or not they would pay checks. The plaintiff argued that "business" qualified "day" and that defendant therefore should have indicated its decision within business hours on the day following the day of presentation, and that since it …

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Bills And Notes-Negligence Of The Depositor-Right Of The Drawee To Charge The Account, Thomas Hartwell Jun 1950

Bills And Notes-Negligence Of The Depositor-Right Of The Drawee To Charge The Account, Thomas Hartwell

Michigan Law Review

A depositor in the defendant bank was a large firm with a payroll clerk who prepared the employees' checks for signing by the proper officer. The clerk prepared checks for employees not then on the payroll, which the officer signed without investigation. The clerk then indorsed as the named payee, signed in her own name as final indorser, and cashed the checks at various banks. Such conduct did not seem unusual to the banks, as she would frequently cash properly indorsed checks as a favor to other employees. The returned vouchers were not examined by the depositor to detect errors. …

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Bills And Notes-Liability Of Indorser After Statute Of Limitations Has Barred Action Against Marker, James F. Gordy S.Ed. May 1950

Bills And Notes-Liability Of Indorser After Statute Of Limitations Has Barred Action Against Marker, James F. Gordy S.Ed.

Michigan Law Review

Defendant company made a note which was indorsed personally by defendant Heiselt, its president. The lower court, in rendering judgment against defendant Heiselt personally, held that the statute of limitations had run in favor of the defendant company but that it had not run in favor of the defendant Heiselt, as his absence from the state during a portion of the period had tolled the statute as to him. On appeal, held, affirmed. Under section 120(3) of the N.I.L. there had been no "discharge of a prior party" which would allow one secondarily liable to escape liability. Upton v. …

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Bills And Notes--Indorsement "For Deposit Only"--Effect On Negotiability, Stephen A. Bryant S.Ed. May 1950

Bills And Notes--Indorsement "For Deposit Only"--Effect On Negotiability, Stephen A. Bryant S.Ed.

Michigan Law Review

Defendant, in payment for goods purchased, drew two checks payable to W which W indorsed "pay to order of plaintiff bank for deposit only" and deposited with plaintiff. Plaintiff credited W's account with the amount of the checks, which sum was immediately withdrawn. Defendant then stopped payment of the checks as W failed to deliver the goods purchased; and, since W was bankrupt, plaintiff sought to recover the amount of the checks from defendant. Defendant sought to assert a defense which was good against W, on the theory that plaintiff, as restrictive indorsee, was merely a trustee for …

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Negotiable Instruments Under The Uniform Commercial Code, George E. Palmer Jan 1950

Negotiable Instruments Under The Uniform Commercial Code, George E. Palmer

Michigan Law Review

The ambitious undertaking of the American Law Institute and the National Conference of Commissioners on Uniform State Laws to draft a "Uniform Commercial Code" includes a proposed revision of the Negotiable Instruments Law. This is not merely an attempt to patch up the present statute. It is virtually a complete rewriting. It includes many changes and additions in substance as well as a radical reorganization and rephrasing of language where no change in substance is designed. · It includes the much needed separation of the provisions relating to investment instruments such as corporate bonds from those relating to bills, checks, …

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Wills-Advancements-Joint Bank Deposit As Advancement To Child, James F. Gordy S.Ed. Nov 1949

Wills-Advancements-Joint Bank Deposit As Advancement To Child, James F. Gordy S.Ed.

Michigan Law Review

Decedent opened a joint bank account in the name of himself and his daughter. Only two deposits were made, both by him, and solely from his funds. Decedent died intestate before any withdrawals had been made. The administratrix of his estate contended that the funds remaining in the joint bank account constituted an advancement to the daughter, and sought to have them brought into hotchpot in determining the distributive shares of the other heirs. A Colorado statute provided, inter alia, that when such a joint deposit is made, it may be paid to any one· of the joint depositors whether …

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Bankruptcy-Set-Off-Bank Deposits, A. E. Anderson S.Ed. Jun 1948

Bankruptcy-Set-Off-Bank Deposits, A. E. Anderson S.Ed.

Michigan Law Review

Endorsers of a corporation's notes caused the corporation to make deposits in the payee bank in the regular course of business, knowing the corporation to be insolvent, and the bank took over the deposits within four months of adjudication in bankruptcy. It was contended that under the amended definition of "transfer" as set out in section 1 (30) of the Bankruptcy Act of 1938, this transaction resulted in a voidable preference to the endorsers under section 60. The trial court rejected this contention. On appeal, held, affirmed. Although the 1938 amendment gave a broader significance to the term "transfer" …

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Bills And Notes-Imposters In The Law Of Bills And Notes, Ralph W. Aigler Apr 1948

Bills And Notes-Imposters In The Law Of Bills And Notes, Ralph W. Aigler

Michigan Law Review

Two crooks, Baron and Brasch, now apparently residents of the New Jersey penitentiary, yielded to the temptation to acquire money by supposedly easy means. They selected as their victim a Miss Russell, a retired school teacher with more cash than is usual in the cases of people with her background. She seems to have had a strong leaning towards charitable contributions, and it was this trait which commended her to Baron and Brasch.

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Contracts-Bills And Notes-Precedent Debt As Consideration In The Law Of Contracts And Negotiable Instruments, Shubrick T. Kothe S.Ed. Dec 1947

Contracts-Bills And Notes-Precedent Debt As Consideration In The Law Of Contracts And Negotiable Instruments, Shubrick T. Kothe S.Ed.

Michigan Law Review

Today, there is little left of the sixteenth century rule that a precedent debt is consideration sufficient to ground an action of assumpsit. Modern cases, such as those where a debt is barred by the Statute of Limitations or discharged in bankruptcy, where it is historically applicable, generally do not rest upon that theory. As a practical matter, it makes little difference. These cases achieve a just result, and have been confined to standard fact situations. The doctrine seems clearly at variance with the rule that consideration cannot be past, and serves no useful purpose today. Cases where this problem …

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Chattel Mortgage--Validity Of Recorded Chattel Mortgage As Against Ordinary Purchaser--Possession Entrusted To Mortgagor-Dealer Regularly Engaged In Sale Of Similar Articles, Edwin F. Uhl S.Ed. Dec 1947

Chattel Mortgage--Validity Of Recorded Chattel Mortgage As Against Ordinary Purchaser--Possession Entrusted To Mortgagor-Dealer Regularly Engaged In Sale Of Similar Articles, Edwin F. Uhl S.Ed.

Michigan Law Review

Plaintiffs purchased from a retail dealer, in the ordinary course of trade, automobiles which were subject to properly recorded mortgages given by the dealer to defendant finance company. The certificates of title which the mortgage-dealer had been permitted to retain indicated that the vehicles were free from lien. Claiming default in payments by the dealer, the defendant seized the automobiles. Plaintiffs brought actions seeking repossession and damages. As the evidence clearly disclosed, defendant anticipated that the dealer would make no disclosure of the encumbrance at the time of sale, but rather expected that the lien would subsequently be discharged with …

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