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Articles 481 - 510 of 752

Full-Text Articles in Banking and Finance Law

Bills And Notes - Liability Of "Irregular Lndorser" Of Chose In Action, Gerald L. Stoetzer Jan 1938

Bills And Notes - Liability Of "Irregular Lndorser" Of Chose In Action, Gerald L. Stoetzer

Michigan Law Review

Trustee bank, for the purpose of refinancing a mortgage on trust property, executed a trust deed and instrument, designated as the "principal note," which disclaimed personal liability of trustee and beneficiaries, expressly providing that the sole remedy upon default of payment of "note" or interest installment should be by foreclosure of the trust deed. Before delivery, the beneficiaries of the trust indorsed the "note" though not parties thereto. Upon default the holder brought this action against one of the beneficiaries on his anomalous indorsement. Held, (1) that the "note" was a mere chose in action; (2) that an irregular …

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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 - 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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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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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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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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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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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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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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Effect Of Pledgee's Breach Of Duty On Existence Of The Debt, William H. Farnham Dec 1936

Effect Of Pledgee's Breach Of Duty On Existence Of The Debt, William H. Farnham

Michigan Law Review

When A borrows money from B, and transfers to B possession of A's chattel as pawn, it will be observed at once that B, the pledgee, has become the owner of two things: (a) a contract right or debt against A ; (b) a pledgee's interest in or lien upon the pawn. If the pledgee thereafter, but before payment of the debt, is guilty of a breach of duty in his dealing with the pawn, problems present themselves as to the effect of the pledgee's wrongful conduct on the existence and ownership of the debt and of …

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Principal And Surety - Fidelity Bonds - Effect Of Failure To Make Disclosures Regarding Bonded Employees, Francis T. Goheen Dec 1936

Principal And Surety - Fidelity Bonds - Effect Of Failure To Make Disclosures Regarding Bonded Employees, Francis T. Goheen

Michigan Law Review

The defense on a fidelity bond given by the cashier was the failure of the officers of the obligee bank to disclose that prior to the execution of the bond the bank examiner had discovered and advised the officers that the cashier had, without the knowledge and consent of the officers and directors, become indebted to the bank in the. sum of $889.60 by paying his own checks drawn on the bank. When the overdraft was called to his attention the cashier immediately repaid the bank. The surety insisted that despite the fact that the officers of the bank may …

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International Law - Recognition Of Soviet Russia - Extraterritorial Effect Of Decrees Of Confiscation And Nationalization Nov 1936

International Law - Recognition Of Soviet Russia - Extraterritorial Effect Of Decrees Of Confiscation And Nationalization

Michigan Law Review

The Moscow Fire Insurance Company, the Northern Insurance Company of Moscow, and the First Russian Insurance Company were incorporated in Russia under the Czarist regime, and given authority to do business in New York. Deposits were made in New York for the benefit of policy holders and creditors in this country. Subsequent to the revolution in Russia and the Soviet decrees nationalizing all Russian corporations and confiscating without compensation such corporations' assets in Russia and abroad, these deposits were turned over to the New York State Insurance Commissioner for liquidation. Large sums remained after domestic claims were satisfied and the …

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Constitutional Law - Due Process - Bank Receiving Deposits During Insolvency Nov 1936

Constitutional Law - Due Process - Bank Receiving Deposits During Insolvency

Michigan Law Review

An Ohio statute provided that an officer of a bank who received a deposit therein "when he has knowledge that it is insolvent" shall be subject to criminal liability. The defendant, a director of a state bank, was indicted under the statute for receiving deposits therein knowing the bank to be insolvent. The court of appeals reversed a decision of the common pleas court dismissing the defendant. On appeal the defendant contended that the statute violated the due process clause of the Fourteenth Amendment of the Federal Constitution in that the use of the word "insolvent," without providing a definition …

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Bills And Notes-Negotiability Of Bonds Issued By Massachusetts Trust May 1936

Bills And Notes-Negotiability Of Bonds Issued By Massachusetts Trust

Michigan Law Review

In a replevin action to recover stolen bonds, held that the exclusion of the personal liability of the issuing trustees rendered the instruments nonnegotiable, Lorimer v. McGreevy, (Mo. APP. 1935) 84 S. W. (2d) 667.

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Unforgetable Knowledge, Maurice H. Merrill Feb 1936

Unforgetable Knowledge, Maurice H. Merrill

Michigan Law Review

In another article, the writer had occasion to analyze the concept of notice. He there called attention to the fact that in some instances the existence of notice depends upon awareness by the person to be charged, either of the ultimate facts or of circumstances placing him upon inquiry thereof, while in other cases notice exists entirely independent of such awareness. To characterize notice of the first class he suggested the term "cognitive notice," applying to the latter the designation "absolute notice."

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Bills And Notes-Holders In Due Course-Effect Of Knowledge Of Executory Character Of Consideration Feb 1936

Bills And Notes-Holders In Due Course-Effect Of Knowledge Of Executory Character Of Consideration

Michigan Law Review

In an action on a promissory note the plaintiff claimed, as a holder in due course, to be free from the defense of failure of consideration. When the plaintiff acquired the note it was physically attached to a conditional sales contract by the terms of which the payee was to furnish the maker with an oil burner which in truth was never furnished, this being the claimed failure of consideration. Breach of the sales contract apparently took place after the plaintiff acquired the note. Held, plaintiff, having knowledge of the terms of the contract, was not a holder in …

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Banks And Banking-National Banks Subject To State Statute Providing Reward For Finders Of Lost Goods Jan 1936

Banks And Banking-National Banks Subject To State Statute Providing Reward For Finders Of Lost Goods

Michigan Law Review

Plaintiff found $105,000 hidden in a roadside junk heap. The money had been stolen from defendant national bank in an early morning hold-up, and cached by the robbers in the rubbish pile, With the police, plaintiff returned the money to the bank. Plaintiff then sued the bank for a ten per cent reward provided by an Iowa statute for the return of "lost goods." The Supreme Court of Iowa reversed a decision that the statute did not apply to stolen money. In a rehearing, defendant put in an amended plea that the statute could not impose any liability on national …

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Bills And Notes--Conditions-Negotiable Despite Reference To Trust Agreement Jan 1936

Bills And Notes--Conditions-Negotiable Despite Reference To Trust Agreement

Michigan Law Review

Bonds, stolen from the owner, were subsequently acquired by a bona fide purchaser who received payment from the obligor. The owner sued the obligor on the ground that the bonds were non-negotiable. The first paragraph in each bond contained an unconditional promise to pay. The second and third paragraphs contained the following clauses: "This bond is one of a series . . . executed and delivered in accordance with and subject to the provisions of the Trust Mortgage hereinafter referred to and in pursuance of resolutions of stockholders. . . . The payment of this bond and of the coupons …

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Constitutional Law-Application Of Joint Resolution Of Congress To Gold Clause In Bonds Of Corporations Of Other Countries Jan 1936

Constitutional Law-Application Of Joint Resolution Of Congress To Gold Clause In Bonds Of Corporations Of Other Countries

Michigan Law Review

Plaintiff, a South American corporation, brought suit to recover on bearer bonds of a Finland corporation sold to plaintiff in New York. The bonds contained the stipulation that they were to be paid "in gold coin of the United States of America of the standard of weight and fineness as it existed on July 1, 1924." Both the principal and interest on these bonds were payable in New York. Held, the Congressional Joint Resolution declaring gold clauses in obligations to be against public policy and providing for discharging such obligations on payment, dollar for dollar, of legal tender coin, …

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Banks And Banking-Constitutional Validity Of Statutes Allowing Reorganization Of Insolvent Bank Jan 1936

Banks And Banking-Constitutional Validity Of Statutes Allowing Reorganization Of Insolvent Bank

Michigan Law Review

A statute of Mississippi permitted the reopening of a closed bank, for the purpose of paying off creditors, upon terms proposed by three-fourths of the bank's creditors. The statute required that the proposition of the creditors be approved by the state superintendent of banks and confirmed by the court of chancery. Dissenting creditors opposed such a plan on the ground that the statute was unconstitutional because it impaired the obligation of contracts, and was contrary to the due process clause of the Federal Constitution. The court held that the statute was valid, that all it did was to change the …

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Assignments -Validity Of Gratuitous Written Assignment Jan 1936

Assignments -Validity Of Gratuitous Written Assignment

Michigan Law Review

Deceased took defendant, his son, to a notary and there made and acknowledged written assignments of three mortgages he owned. He handed these assignments to defendant, saying "I give you these. Put them in the safety-deposit box." Defendant went away with the assignments which reappear only after the father's death; they were found in an envelope, marked with defendant's name in deceased's hand, in a safety-deposit box owned jointly by deceased and defendant. Deceased always retained possession and enjoyment of the actual mortgage instruments. Plaintiff, another son, claims these mortgages should be part of deceased's estate. The court held that …

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The Banking Act Of 1935, Harold James Kress Dec 1935

The Banking Act Of 1935, Harold James Kress

Michigan Law Review

The purpose of this article is to consider in a non-technical manner the principal changes in federal central and commercial banking law which have been brought about by the enactment of the Banking Act of 1935, and in that connection to take some account of the preexisting law and the announced or ostensible reasons for the changes made.

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Banks And Banking - Application Of Bank Collection Code To National Banks Nov 1935

Banks And Banking - Application Of Bank Collection Code To National Banks

Michigan Law Review

Defendant national bank received from an out-of-town correspondent bank for collection a check drawn on another local bank. Through the local clearing house this check was presented and paid, whereupon defendant bank sent to its correspondent its draft in payment. Before presentment of the draft, however, defendant bank failed and the draft was dishonored. In an action by the payee of the check, from whom the correspondent bank had taken it, to impress a trust on the assets of defendant bank, it was held, reversing the lower courts, that the state statute (the Bank Collection Code) which was applied …

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Bills And Notes - Bills Of Exchange - Assignment Nov 1935

Bills And Notes - Bills Of Exchange - Assignment

Michigan Law Review

Under an agreement with the intervener that the intervener would "finance" his purchases of stock, the defendant shipped stock to the garnishee, drawing on the garnishee in advance for the purchase price, the intervener being named as payee. With knowledge of the drawing of the draft, the garnishee received and sold the stock, but was thereafter served with summons in this garnishment suit before acceptance or payment of the bill. Held, that the intervener is entitled as equitable assignee to the amount of the draft as against the plaintiff. Baird v. Simonstad, (Minn. 1934) 258 N. W. 570.

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Bills And Notes -"Massachusetts" Trust- Liability Of Trustee Under Section 20 Of The N. I. L Nov 1935

Bills And Notes -"Massachusetts" Trust- Liability Of Trustee Under Section 20 Of The N. I. L

Michigan Law Review

Plaintiff sued the trustee of a realty business trust in his personal capacity on three notes signed by him as follows: "Robert J. Smith, Trustee of Fair Haven Estates." The notes were given in payment of the purchase price of certain land sold by the plaintiff to the defendant, which was secured by a purchase money mortgage. The indenture of trust under which the business was carried on, and which was recorded, provided that all persons who did business with the organization should look only to the trust funds for reimbursement, and neither the trustee nor the shareholders should be …

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Banks And Banking - Collections -"Cash Or Solvent Credits" Nov 1935

Banks And Banking - Collections -"Cash Or Solvent Credits"

Michigan Law Review

The plaintiff drew an out of town draft and deposited it with the A bank for collection. The A bank sent the draft to its correspondent, B bank, to collect and make return when actually paid. The B bank collected the amount of the draft and, according to a custom between the two institutions, credited the account of the A bank and sent them a notice of collection. On the very day this notice was received the B bank closed its doors. A statute provided that items deposited for collection should be credited subject to final payment in cash or …

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Bills And Notes - Bad Faith On Part Of Pledgee Taking Bonds May 1935

Bills And Notes - Bad Faith On Part Of Pledgee Taking Bonds

Michigan Law Review

Defendant, a Wisconsin firm, issued certain bearer bonds secured by a mortgage held by the T corporation, as trustee. A provision in the mortgage defining the duties of the trustee in the disposition of bonds delivered to it was incorporated into the bonds by reference. The trustee being insolvent, plaintiff bank, as pledgee of some of the bonds taken to secure personal loans to the trustee, petitioned the referee in bankruptcy for permission to sell them, claiming to be a bona fide pledgee for value. Held, since federal courts are bound to follow state decisions interpreting state statutes declaratory …

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Banks And Banking--Collections Of Out-Of-Town Items--Priorities On Insolvency Of Correspondent Bank May 1935

Banks And Banking--Collections Of Out-Of-Town Items--Priorities On Insolvency Of Correspondent Bank

Michigan Law Review

In settlement of an adverse balance on the day's clearings, D bank gave to plaintiff a draft on its metropolitan correspondent. D bank then became insolvent, and on presentment the drawee refused to pay, though D bank had sufficient funds on deposit to cover the draft. The receiver allowed plaintiff's claim as a general one. There was no indication that D knew it was insolvent at the time it issued the draft. Plaintiff then brought suit against the receiver to establish a preferred claim. Held, that the issuance of the draft created a trust fund, and plaintiff bank was …

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