Skip to main content

Full text of "Case law and index; a complete series of condensed reports, federal, state, and English, including Canadian, Australian, New Zealand and Hawaiian reports. Vol. I. Banks and banking"

See other formats


CASE LAW AND INDEX 



HOWARD ELLIS 



VOL. I— BANKS, AND BANKING 



INDEX 



CORNELL LAW LIBRARY 




OJorn^U ^£um ^rljaol Hibratg 



CORNELL UNIVERSITY LIBRARY 




3 1924 069 459 604 




Cornell University 
Library 



The original of this book is in 
the Cornell University Library. 

There are no known copyright restrictions in 
the United States on the use of the text. 



http://www.archive.org/details/cu31924069459604 



CASE LAW AND INDEX 



INDEX 



TO 

VOL. I— BANKS AND BANKING 



BOARD OF EDITORS 



HON. JOHN H. STINESS 

CHIEF JUSTICE OF RHODE ISLAND 

HON. JAMES McSHERRY 

CHIEF JUSTICE OF MARYLAND 

HON. ALMET F. JENKS 

JUSTICE OF THE APPELLATE DIVISION OF THE SUPREME COURT 
OF NEW YORK 

HON. JAMES ALFRED PEARCE 

lUDGE OF THE COURT OF APPEALS OF MARYLAND 

{This 'Board uill be increased by eight ^American Supreme Court Judges, 
and four English Jurists) 



Q\SE Law and Index 

A COMPLETE SERIES OF CONDENSED REPORTS 
FEDERAL, STATE, AND ENGLISH 



INCLUDING 



CANADIAN, AUSTRALIAN, NEW ZEALAND 
AND HAWAIIAN REPORTS 



INDEX 

TO 

VOL. I— BANKS AND BANKING 



UPON THE PLAN AND METHOD 
OF 

HOWARD ELLIS, Editor 

Editor of Law and Equity Reporter, Reporter, and New York Weekly Digest 

UNDER the direction OK 

A BOARD OF EDITORS 



CASE LAW COMPANY 
NEW YORK 



COPYRIGHT, 1903, BY 
CASE LAW COMPANY 



THE MILLER PRESS 
NEW YORK 



NOTE 



This book contains the Index to the cases on Banks and Bank- 
ing in Volume I of the Case Law and Index series. 

The features, which differentiate this book from other indices, 
render a brief explanation useful, if not necessary. The object has 
been, to give in the Index a complete statement of the proposition 
of law embodied in the case, not a mere reference to the subject 
matter of the case, so that the searcher can determine from the Index 
what cases are applicable to the question in hand. The result is, to 
save the practitioner much valuable time by relieving him of the neces- 
sity of consulting innumerable cases, which may or may not have a 
bearing on the proposition under consideration. 

The plan pursued, it will be observed, combines the distinguishing 
characteristics of both ind.fex and -digest, and unites the analytical char- 
acter of one with the comprehensiveness of the other. Each case has 
been analyzed by some member of the Board of Editors, and the prop- 
ositions of law embodied therein have been extracted and stated by the 
Editors themselves in the tersest form. These propositions have been 
collated and classified under their appropriate heads. In this way the 
Index has been literally built up — the cases control the Index and are 
not controlled by it; the propositions of law group themselves natur- 
ally under distinctive headings, and are not twisted to fit into some 
preconceived scheme of classification. 

The method of classification is also unique. Banks and Banking 
contains five thousand four hundred cases in which fifteen thousand 
propositions of law are laid down. Each proposition has been distrib- 
uted to all heads of which it treats, many naturally falling under three 
or four. In all there are nearly thirty thousand references ; and so 
exhaustive has been the classification, that while the average case is 
indexed five times, many, on account of the multiple classification of 
propositions, appear as often as twenty to twenty-five times throughout 
the Index. 

The heads have been subdivided into subheads. The common 
elements in the propositions, under each subhead, are placed at the 
head of paragraphs, in italics, and the distinguishing elements of the 
different propositions successively subjoined. In this way, a consider- 
able saving of time and space has been effected and an index of 
two hundred pages is made to preserve the distinguishing elements 
of each of the fifteen thousand propositions of law thus treated. 



Ti GUIDE 

The virtue of this method of preparing an index is obvious. As 
Banks and Banking is a condensation of the case law on that subject, 
so the Index is a condensation, as it were, of Banks and Banking. 
The result is, that the investigator can find within a compass of two 
hundred pages, under appropriate headings, all the cases directly 
in point on any proposition connected with banks or banking engag- 
ing his attention. 

Each volume, as published, will be supplied with a separate index, 
prepared on the same plan and with the same thoroughness which have 
characterized the preparation of the present index, until the completion 
of the series. Then, a General Index to the entire series, combining 
and consolidating the separate indices, improved and enlarged, will be 
published, which, it is hoped, will prove to be, together with the 
volumes of Case Law, the most useful guide yet devised through the 
wilderness of adjudicated cases. 



GUIDE 



The references in the Index to cases are by page numbers and letters : — a, stands for the 
first case begun on the page ; b, for the second, etc. 

The jurisdiction is shown in parenthesis, before the case or cases cited. 

The bold-faced side heads — subdivisions of the subject — are to be prefixed, to complete the 
sense, to any statement or series of statements under them beginning with a small letter, but not 
otherwise. 

All itahcized portions, heading paragraphs, are to be prefixed to statements in the same 
paragraph, preceded by dashes, to make the sense complete. The italicized word or words 
following the dash in the body of the paragraph show that the italicized portion at the head of 
the paragraph is to be prefixed. The dash terminates any statement and throws the reader back 
to the italicized portion at the head of the paragraph. 

Cross references in small capitals are to main heads throughout the Index ; in bold-faced 
or the regular text type, to side heads under the same main head where the cross reference is 
made. 



CONTENTS 



Accommodation 

Account .... 

Action ..... 

Administrator . 

Agency ..... 

Alterations 

Assignment .... 

Attachment, Garnishment 

and Trustee Process . 
Attorney 
Attorney's Fees 
Attorney-General 
Bailment . 
Bank Bills 
Banks 

Bank Commissioners 
Bank Comptroller . 
Bank Examiner 
Bankruptcy Act 
Bank Supervisors . 
Bank Visitor 
Bill of Credit 

BiLLHOLDERS 

Bills of Exchange 

Bills of Lading 

Board of Currency 

Bonds 

Books 

Burden of Proof 

By-Laws 

Capital 

Cashier 

Certificate of Deposit 

Charter 

Checks 

City Treasurer 

Clearing House 

Clerk 

Collateral 

Collections . 

Commissioners . 

Comptroller of Currency 

Consolidation of Banks 

Constitutional Law 

Contracts 



PAGE 




PAGE 


1 


Corporations 


54 


1 


County Commissioners 


56 


1 


County Officers . 


56 


5 


Court Clerk 


56 


5 


Courts .... 


56 


7 


Credit .... 


56 


7 


Creditors 


57 




Criminal Law . 


57 


8 


Currency Act 


59 


10 


Custom and Usage . 


59 


10 


Damages 


61 


10 


Days of Grace 


61 


10 


Deceit .... 


61 


10 


Deeds 


61 


13 


Demand .... 


61 


16 


Deposit .... 


61 


16 


Directors 


70 


16 


Discount .... 


77 


16 


Dishonor 


77 


16 


Dissolution 


77 


16 


Dividend 


79 


16 


Domestic Relations . 


79 


16 


Drafts and Bills of Ex- 


16 


change 


79 


16 


Duty of Bank . 


85 


16 


Elections 


87 


17 


Estoppel .... 


87 


17 


Evidence 


87 


18 


Exchange . 


89 


18 


Executors and Administ 


RA- 


19 


TORS .... 


89 


20 


Forged Instruments 


90 


25 


Franchise 


94 


27 


Fraud .... 


94 


33 


Garnishment 


95 


39 


Gifts .... 


95 


39 


Governor 


96 


40 


Grace — Days of 


96 


40 


Guaranty 


96 


44 


Guardian and Ward 


97 


51 


Incorporation 


97 


51 


Indemnity 


97 


51 


Indorsement . 


97 


51 


Injunction 


97 


53 


Insolvency 


98 



viii 


CONTENTS 






PAGE 




PAGE 


Insurance 


105 


Receipt ..... 


162 


Interest 


105 


Receiver .... 


163 


Judge 


107 


Remedies .... 


166 


Judgment .... 


107 


Reorganization 


166 


Jurisdiction 


108 


Reports and Statements 


166 


Laches ..... 


109 


Res Adjudicata 


167 


Legal Tender . 


109 


Revstards .... 


167 


Legislature .... 


109 


Sale ..... 


167 


Letter of Credit 


110 


Savings Bank 


167 


Lien ... 


110 


Seal 


168 


Loan .... 


111 


Secretary .... 


168 


Lost Instruments 


112 


Sequestration . 


168 


Managers of Savings Banks 


113 


Setoff ..... 


168 


Measure of Damages . 


113 


Sheriff .... 


168 


Money .... 


114 


State Auditor 


168 


Mortgage .... 


114 


State Banks 


168 


Municipal Corporations . 


115 


State Board of Equaliza- 




National Bank Act 


115 


tion ..... 


169 


National Banks 


123 


State Senator 


169 


Negotiable Paper 


123 


State Treasurer 


169 


Notary .... 


123 


Statutes .... 


169 


Notary Public 


123 


Stock ..... 


175 


Notice .... 


123 


Stockholders . 


181 


Notice of Dishonor 


123 


Stockholder's Liability 


183 


Notice of Protest . 


123 


Subrogation 


186 


Officers and Agents . 


123 


Successive Banks . 


186 


Orders on Banks 


127 


Summary Proceedings 


187 


Organization 


127 


Superintendent of Banking 


187 


Overdraft 


129 


Surety .... 


187 


Partnership .... 


129 


Surplus .... 


191 


Payment . 


131 


Tax Assessors . 


191 


Pleading .... 


134 


Taxation .... 


191 


Pleading and Proof 


137 


Tax Collector 


198 


Pledge ... 


140 


Tender ..... 


198 


Powers of Banks 


140 


Tort 


198 


Practice 


143 


Town Treasurer . 


199 


Preference 


144 


Treasurer 


199 


President .... 


144 


Trust Company 


199 


Priority .... 


147 


Trustee Process 


199 


Private Banks 


147 


Trusts and Trustees . 


199 


Profits .... 


147 


Ultra Vires 


204 


Promissory Note . 


148 


Usage ..... 


204 


Protest .... 


158 


Usury .... 


204 


Public Funds 


158 


Variance .... 


207 


Public Offcers 


159 


Waiver . • . . 


207 


Ratification 


162 


Warehouse Receipts 


207 


Real Property 


162 


Warrants 


207 



Index to Banks and Banking 



ACCOMMODATION 

(See Checks, Drafts, Promissory Notes) 

ACCOUNT 

Admission 

of correctness supports verdict, where no proof of payment is given (Tenn.) 1285d. 

Correctness 

t)iay be qitestioned in case of open account for collection (Pa.) 1177c. — in case of forgery 

(N. Y.) 902b. —z« case of fraud (N. Y.) 1039e. 
may not be questioned unless objections be made within reasonable time (Mo.) 755a. 

— after acquiescence for six years (Pa.) 1231b. 
may be inferred from three years' silence, a usage so to infer being proved (Md.) 497c. 

Proof 

may be made by cashier's entries (Me.) 460c. — by envelope used as passbook (Mass.) 588a. 
See also Deposit. 

ACTION 
Abatement (see Dissolution) 

Action m.ay be abated by dissolution of bank (Ky.) 351c, (Me.) 463b, (Miss.) 679c, (N. Y.) 

1069b, (Tenn.) 1288b. 
Action not abated by amendment to statute (N. Y.) 1087b. —assignment (Me.) 483b. 

—forfeiture oi chaxtet (Ga.) 145a. — r«o/«/«o« to surrender charter (Ga.) 153b. — 

deatk (Colo.) 107a, (Ind.) 258b, (N. J.) 837e, (N. Y.) 929e. —dissolution of bank 

(Miss.) 679d. —repeal of statute (Mass.) 532b, (N. Y.) 877b. 

Assumpsit 

lies on teller's bond (Mich.) 611c. — to collect license tax (Cal.) 73b. — to recover money 
paid to third person (Me.) 481d. — to recover on bank bill, one-half of which was lost 

(Tenn.) 1289b. 
does not lie to recover taxes paid under protest (111.) 194e. 

Assumpsit (Implied) 

lies to recover excessive payment of check by cashier (Ky.) 341b. 

does not lie on promise to pay for services rendered outside officer's duties (Mass.) 566b. 

— to recover money deposited by husband in name of wife (Mass.) 557b. 

Certiorari 

lies for illegal assessment (Ala.) 29d. — to review taxation (N. J.) 837c. 
does not lie to annul act of court in filling vacancies ( Cal. ) 90a. 

Claim and Delivery 

Judgment should be given for amount due (S. D.) 1279d. 

Contract 

lies on cashier's promise to pay (Mo.) 741b. 
does not lie on repudiated act of treasurer (Mass.) 583a. 

Breach of contract is remedy for recovery of deposits paid on forged drafts (N. Y.) 
1034b. — not maintainable to recover damages for excusable delay (Mass.) 578c. 

Conversion 

lies for failure to deliver property to real pledgor (Cal.) 96a. —^or payment of check to 
wrong person (N. Y.) 913d. — against an insolvent bank (N.Y.) 972c. —against one 
aiding a conversion (Kan.) 324a. 

Debt 

lies to recover on a bank note (Ohio) 1137a, (Tenn.) 1284d. 
Declaration must show money due upon express agreement (Ga.) 165a. 

Discontinuance 

not effected by granting new trial and setting aside judgment (N. C.) 1104c. 
allowed to plaintiiF at any time in stockholder's liability action (N. Y.) 1085a. 

Information 

to vacate charter not granted where bank acts in good faith (Vt.) 1347c. 



BANKS AND BANKING 



ACTION— Continued 
In rem 

lies to obtain security held by one not party to agreement (N. Y.) 982b. 

Interpleader 

lies where two claim same fund though paid to one (Mich.) 618a. 

Joinder of Causes 

Actions between same parties, with same right and venue, may be joined (la.) 285c. 

Actions for neglect of duty and deceit may be joined (N. C.) 1121c, 1122a. 

For usury and to restrain sale of mortgaged land, cannot be joined (N. C.) 1114b. 

Joint and Several 

Separate action lies for each collection of money (Ga.) 148c. 

Complaint alleging negligence of directors, fraud and false report, sets forth one cause of 
action (N. Y.) 991a. 

Mandamus 

lies to allow stockholder to inspect corporate books (La.) 425a, (N. Y.) 865a. —to 
compel issuance of bank notes by auditor (Ohio) 1145b. —to enforce acceptance of 
State Bank notes in payment of state debts (Ark.) 51c. —to compel state treasurer 
to pay funds to receiver (Vt.) 1354b. —hy bank visitor for salary (Ark.) 44c. -to- 
compel circuit judge to grant an injunction (Ark.) 42c. 

does not lie where other remedy given (Mich.) 616c. — to compel transfer of stock (R. I.) 
1250a. —to compel transfer of bank's assets to the state which furnished capital 
(S. C.) 1264b. —to compel reapportionment of stock without showing demand and 
refusal (S. C.) 1262c. —to allow inspection of books, unless right is shown (La.) 
390b. —to reduce compensation of bank examiners (Neb.) 777c. —to compel national 
banks to furnish tax officers with names and residences of stockholders (Wash.) 
1381c. —to compel superintendent to grant certificate (N. Y.) 1038b. —to compel 
auditor to pay State Bank ofBcers, where act appropriating salaries is repealed (Ark.) 
48a. 

Peremptory writ lies in first instance on order to show cause (N. Y.) 865a. 

Money had and received 

lies on withdrawal of funds against whichcheck is drawn (Me.) 486a. —for money paid 
on forged check (D. C.) 131b. —for money paid under mistake of fact (N. Y.) 886b. 
—for misappHcation of funds (Mass.) 544b. —where money is in depreciated coin 
(Mo.) 698a. ^;/br failure to pay deposit on demand (Ind.) 272b. —to recover deposit 
in wrong bank (111.) 238c. 

does not he . for loss of money deposited with an assorting bank by mutual agreement 
(Mass.) 546b. — against \tB,r^ for misappropriation of county funds by county treas- 
urer (Mich.) 607a. 

Action not maintainable unless defendant received plaintiflfs' money (N. Y.) 1035a. 

Liability. Defendant not liable for more than he received (N. Y.) 1080b. 

Parties 

Action brought in name of assignor's administrator, where assignment is denied, cannot 

be defended on ground that he is improper plaintiflF (Mass.) 555b. 
Authority to sue. Attorney's name indorsed on writ, evidence of authority (Mich.) 601b. 
Bank as defendant should be sued in corporate name (N. Y.) 871c, in billholder's 

action (N. C.) 1109d. 
futisdidion acquired by service of process or appearance (la.) 305d. 
Jurisdiction not acquired. Rule against stockholders to surrender shares to be sold for 

taxes, does not make the bank a party (La.) 453d. Federal judges not made parties- 

to bill for deposit by state court (Mass.) 591c. 
Non-Joinder. Omitting some stockholders jointly liable, not demurrable (Me.) 481c. 

Objection of non-joinder waived if not taken by demurrer (N. Y.) 1013e. 
Right to sue. Action not maintainable by one having no interest (S. D.) 1277b. 

Party having no interest in the action cannot join with a party having interest 

(Ark.) 52a. Joining a party who has no interest is immaterial (Minn.) 647c. 
State is proper party in suit on bonds held by it (Fla.) 134a. —is not proper party 

in action to determine bona fides of bank's transfer of property (Neb.) 785c. —is. 

not necessary party in application for injunction (Ark.) 52a. —though preferred 

creditor, is not necessary party to bill to compel proofs of claim (Tenn.) 1300a. 
Title. Possession of note sufficient to maintain action (Me.) 483b, (Mass.) 565b. 

Action 'Properly 'Brought in Na.me of 

bank, in action under statute (N. Y.) 928a; even after receiver's appointment (Kan.) 

340c; or after assignment of assets to trustees (Ark.) 49a. 
billholder, suing for all billholders (Mass.) 535a, (Neb.) 800c. 
cashier, where note is indorsed to him "as cashier" (Va.) 1368c. 
county to recover hcense tax (Cal.) 73b. 
depositor or his administrator (Mass.) 561b. 
donor's administrator, in suit by depositor's donee (Vt.) 1364a. 

holder of warehouse receipts as security (S. D.) 1283a. ■- 

payee of note discounted by another, with payee's consent (Vt.) 1353b. 



INDEX 3 

ACTION— Continued 
Parties (continued) 

c4ction 'Properly Brought in Name of (continued) 

president for benefit of bank (N. Y.) 920b, for stock subscription (N. Y.) 875a. 
receiver, (Me.) 4'(9d, 486d, against stockholders (Conn.) 122b. 
stockholders, in equity, against directors wrecking corporation (S. C.) 1273c. 
trustees, under statute (la.) 306b. — o/"insolYent bank on note to them (Tenn.) 1804b, 
(Miss.) 674b; contra, in action on bank's bonds, after renewed charter (Ark.) 52c. 

chfecessary 'Parties o4re 

assignee, in creditor's action to enforce director's liability (Wis.) 1428a. 

attaching creditor and assignee, on bill to restrain attachments (Miss.) 688b.'^ "'''' ^ 
bank, in action against managers (N. J.) 835a; or to enforce director's liability"(N. Y.) 

867b, 959b. 
committee oi \axisM\z. in action on lunatic's check (N. Y.) 1020c. 

creditors, in action to wind up bank's aifairs and charge directors (Wis.) 1410b. j 

directors, in assignee's bill for negligence and fraud (W. Va.) 1394b, c, d. 1 

U. S. judges in bill to recover a deposit made by their order (Mass.) 591c. 
purchasers of bank stock in suit on their bond to pay bank's debts (Ky.) 348e. 
receiver in suit to rescind stock purchase (Mich.) 630d. — involving title to bank 

assets (Kan.) 330b. — against bank manager for mismanagement (N. J.) 833d. 
all stockholders, in action to enforce stockholder's liability (Wis.) 1426c; or in suit 

by stockholder against bank officers, unless brought by one for all (N. Y.) 959b. 

Unnecessary Parties Are 

all association ineinbers for joint tort (Tex.) 1321a. 

attorney depositing trust funds, in action for their recovery (N. Y.) 1059d. 

bank, in suit by trustee on assignment' (Tenn.) 1313b. — to enforce stockholder's lia- 
bility (Ind.) 250a, (N. Y.) 916b, unless there are bank assets to be reached (Wis.) 
1426b. —where cashier, as holder of legal title, brings suit (S. D.) 1279e. 

bankrupt in suit against his commissioners (Ky.) 347c. 

cashier, to bill for injunction (Miss.) 664b. 

cestui in trustee's action to enforce stockholder's liability (Mass.) 535a. — where cestui 
is a fictitious person (N. Y.) 1090a. — in billholder's action for another's benefit 
(Mich.) 598b. 

directors in suit for breach of trust (N. Y.) 867b; or representatives of deceased 
directors (Ga.) 152a. 

president in stockholder's suit against directors (N. Y.) 991a. 

prior incumbrancers in action to foreclose mortgage made to bank and transferred 
to state and bondholders (Ark.) 48d. 

real owner where stock is held in trust (111.) 231c. 

receiver, in action against stockholders (N. Y.) 1088c. — against bank, under lease 
(111.) 227d. 

all shareholders in joint stock company, having no interest (Miss.) 668b. 

stockholders who have transferred stock (111.) 231c. — in attachment of bank stock in 
c'ommissioner's hands (Ky.) 347c. — in action against one stockholder for corpor- 
ate debt (Conn.) 118a. — in suit to enforce non-resident stockholder's liability (Mo.) 
719c. —in action against officers for mismanagement (Neb.) 782c, (Vt.) 1353a. 

third parties, joint tort-feasors, in action for misfeasance (N. J.) 837e. 

transferrers, in suit by transferee to compel bank to transfer stock (Mich.) 624c. 

trustees, in action for misconduct of one trustee (N. Y.) 994d. 

Proper Parties Are 

assignee in an action bv creditors against stockholders (Wis.) 1424b. — in bill to en- 
force stockholder's liability (Pa.) 1207d. 

bank as plaintiff in suit on contract made by agent (N. Y.) 882a. — in action on note 
discountedby it (Tenn.) 1284b. —on stockholder's action (111.) 221c. —a^ defendant 
to enforce stockholder's liability (Neb.) 798b, (N. Y.) 1002a, (Wis.) 1404b. 

bank comptroller, on bond to secure billholders (Wis.) 1404c. 

all billholders in action against stockholders (Mass.) 534d. 

cashier, proper plaintiff, when he has legal title (S. D.) 1279e. — may sue on notes 
indorsed by him in bank's name to himself (Mo.) 734d. — may be joined in action 
to enforce officer's liability (Wis.) 1428a. 

creditor, in action for fraud (N. C.) 1121b; or filing claim as intervenor (Minn.) 648e. 

depositor whtre. nominal (Vt.) 1363. — in joint suit for mismanagement (N. J.) 833d. 

drawer may be sued jointly with indorser of bill of exchange (Ky.) 343c. 

garnishee, on bill indorsed to him for collection pending attachment (Mo.) 701c. 

holder and collection agent in suit by owner of check (N. Y.) 951a. 

married woman in action to enforce trust (Vt.) 1349c. — necessary party, in inter- 
pleader (N. Y.) 901b. 

One refusing to join as plaintiff may be made defendant (Colo.) 102b. 

owner of promissory note in suit for proceeds of collection (N. Y.) 1019c. 

receiver, m action to set aside transfer before insolvency (Neb.) 785c. — to enforce 
stockholder's liability (N. Y.) 1002a, (Vt.) 1366a; even if receiver of foreign bank 
(Mass.) 595b. — on unpaid stock subscription (N. Y.) 884c. —for conversion (N. 
Y.) 972b. — fo recover special deposit (la.) 285c. —fo collect license tax (La.) 443c. 



BANKS AND BANKING 



ACTION— Continued 
Parties (continued) 

"Proper "Parties Are (continued) 

staie treasurer, in receiver's suit to subject assets to payment of "bank fund" (Vt.) 
1354a. 

stockholder, by any creditor, in receiver's action against bank (Minn.) 648e. —partici- 
pating in fraud, in action for director's fraud (Ohio) 1132d. —holding stock when 
charter expired, in billholder's action (Mass.) 534d. —as plaintiff in action for 
fraud (N. C.) 1121b. 

sureties properly joined, though severally liable (Mass.) 544c. 

taxpayer in action to enjoin city's illegal contract (Cal.) 74a. 

trustees who survive, in action on note assigned by bank (Ark.) 48b; or their suc- 
cessors in whose favor cause of action accrues (N. Y.) 1000b. —holding stock, as 
defendant (111.) 231c, or as complainants in action against cestuis (Me.) 475c. 
— alone, after charter forfeiture (Ala.) 24d. 
Improper Parties Are 

adtninistrator oi on^ of several joint contractors, when sued with survivors (Ala.) 13a. 

creditor attempting to enforce stockholder's liability after suit for appointment of 
receiver (Wash.) 1385b, (Wis.) 1425c; or suing for exclusive benefit of one stock- 
holder (Minn) 635b. 

depositors filing joint bill against managers of savings bank (N. J.) 835a. 

drawer of check with payee, in action against drawee (Pa.) 1221b. 

joint maker of note in action for usurious interest (Kan.) 330d, (N. D.) 1130c. 

maker and indorser, suing jointly at common law, on note (Ky.) 341d; contra, by 
statute (Ohio) 1137d. 

receiver enforcing stockholder's remedy against directors (N. C.) 1124c. 
I separate depositors suing jointly (Mass.) 566a. 

sheriff, instituting creditor's action to reach non-attachable property (N. Y.) 939d. 

state, as plaintiff in action in nature of creditor's bill (Neb.) 785c. 

trustees, under charter forfeiture, having no interest in note in suit (Miss.) 679c. 

Substitution 

Assignee of depositor may be substituted for depositor (N. Y.) 900a. 
Heir may be substituted for administrator in action on deposit (Neb.) 806c. 
Receiver of national bank may be substituted for bank (Dak.) 126a. 
Stockholders cannot be substituted for corporation (N. J.) 827c. 

Substitution of defendants not allowed if debt sued for is discharged or barred by 
Statute of Litnatatious (Pa.) 1183b. 

Quo Warranto 

is a criminal proceeding (111.) 184d. 

lies for illegal banking (Ark.) 44d, (N. Y.) 851d. —for violation of charter (Md.) 246a. 

— to determine forfeiture of charter (111.) 181d. —^r usurpation of office (Ark.) 41c. 
Pleading. To be reinstated in office, every fact showing title must be proved (Ark.) 42a. 
In proceeding to distribute assets, no demand need be averred (Ind.) 262d. 
StcCte court has no jurisdiction against national bank officers (Conn.) 119b. 
De facto officers subject to quo warranto (Md.) 256b. 

Who entitled to: one claiming an interest in the corporation (Ind.) 262d; public officer 
against a bank (Ohio) 1133a. 

Who not entitled to: participants in election of directors (S. C.) 1262c. 

Replevin 

lies to recover note left by mistake (Mass.) 542d. 

Reviver 

Lex fori governs reviver (Ky.) 351c. 

Sequestration 

does not he against funds deposited by city for payment of taxes (La.) 436d. 
Writ issues upon application of attorney-general (La.) 427c. 

Survivor 

Actions survive against director for negligence (N. Y.) 1071b, or against president for 
misfeasance (N. Y.) 1099b. — do not survive SLgainst cashier for negligence (Vt.) 1364c. 

Trespass on case 

does not lie to recover deposit (111.) 189b. 

Trover 

lies for bank bills (Ind.) 247b. ^/br special deposit (Mo.) 707b. —contra (Ind.) 247b. 

^/br stock certificate (Pa.) 1175d. 
does not lie for shares of stock (Pa.) 1175d. —for notes for collection, not in possession 

at time of demand (Wis.) 1411a. —for larceny of bonds held as security (Me.) 480a. 
Defense. Want of title (Ind.) 247b. 



INDEX 



ACTION— Continued 
Venue 

Action on certificate of deposit begun where certificate is payable (la.) 288b. 

Removal to federal court not allowed on consent of a codefendant (Ohio) H32b. —to 
bank not named in Judicia:! Act of 1789 (Ohio) 1132b. —in action against direc- 
tors of national bank (Neb.) 802c. — in action by national bank on a promissory 
note (Wash.) 1384d. 

See Nat. Bank Act, sec. 57. 

ADMINISTRATOR 

(See Executors and Administrators) 

AGEKCY 
Appointment 

IS effected by previous course of dealing (Neb.) 783c. — by entrusting one with collection 

of paper (N. Y.) 919c. —by specific deposit (Mich.) 606c, (N.Y.) 892b, (S. C.) 1283b. 
of teller as agent of depositor is effected by deposit with teller to meet draft payable at 

bank (N. Y.) 892b. 
of bank clerk as agent of depositor is efiected by entrusting clerk with making of deposits 

(N. Y.) 850c. 
of bank as agent of holder is not efiected by designation of bank as place of payment 

(la.) 305d, (N. Y.) 958a; unless bank also holds the note (N. Y.) 907a. 
of maker as agent of holder is effected by holder's surrender of collateral for maker 

(Ga.) 178b. 
of trustee as agent for stockholders is effected by stockholders' agreement to meet deficit 

on loan procured by trustee (N. C.) 1126c. 
of bank president, as agent for creditor in reorganization agreement, is not efiected by 

creditor's mere assent to composition (Minn.) 663a. 
as agent to receive check is not effected by forged indorsement (N. Y.) 1041b. 
as agent to sign checks is not effected by introduction for identification (Mass.) 559c. 
as agent to fill in blanks is efiected by entrusting one with blank draft (N. Y.) 953a. 
as agent to pay debts of stockholder is not effected by indebtedness of bank to stock- 
holder (N. Y.) 941a. 
by lunatic is voidable (Md.) 502c. 

Authority 

of national bank as U. S. agent does not continue during liquidation (Ga.) 161a. 

of branch of State Bank extends to issue of certificates (Ark.) 45d. 

to indorse is not implied from power to collect (Mo.) 707c, (N. Y.) 1000b; or to receive 
checks (111.) 243b, (Tenn.) 1310d; or to sell goods (Tenn.) 1312d. 

to indorse generally is not implied firom power to stamp checks for collection (N. Y.) 
1041b; or from power to sign and indorse notes to be used at a particular bank 
(La.) 442c. — includes power to indorse agent's own notes (La.) 409c. 

to collect is not implied from power to receive checks (111.) 243b, (Tenn.) 1310d. 

to extend time is not implied from power to collect (Neb.) 804e. 

to assign is not implied from power to collect (Cal.) 91a. 

to withdraw deposit is not implied from power to make deposit (N. Y.) 1084b, (Pa.) 
1232b. — is implied from general power to manage money (Ga.) 158c. — does not in- 
clude power to overdraw (N. Y.) 928c. — is presumed when checks are drawn within 
scope of agent's authority (S. C.) 1273a. 

to do banking business generally is not implied from power so to act at one bank (N.Y.) 
1021c. 

to use funds collected is not . implied from agreement not to draw until collection be re- 
ported (Ala.) 37a. 

to receive stock subscription does not include power to raise subscription price on a note 
held by the subscriber (Md.) 502a. 

Collections— see Collections 

Conflict of Interests 

prevents one having personal interest from acting as confidential agent (N. Y.) 919c. 
does not prevent collection bank from obtaining priority, on notes held by itself, by attach- 
ment (la.) 294b. —limited agent from buying draft against principal, with rights of 
purchaser (Cal.) 95b. 

Election 

to hold agent alone arises only on full- knowledge of facts (Ky.) 364d, (N. Y.) 962b. 

Fictitious Principal 

Bank at its peril assumes principal to be fictitious (Cal.) 71c. 

Liability of agent 

to principal includes accountability for proceeds (N. D.) 1128a; and for exercise of good 
faith and diligence in lending money (111.) 245c. —does not include absolute respon- 



BANKS AND BANKING 



AGENCY— Continued 
liability of Agent (continued) 

sibility, as for negligence per se, for loan to agent's own debtor (111.) 245c; or for 
failure to disclose agency in indorsement (Pa.) 1177c. 
to others does not include obligation to make return, after payment to principal, of 
money received by agent through mistake (N. H.) 815a. 

Notice 

^of agent's powers is chargeable to holder of note referring to his authority, (La.) 411a. 
of termination of agency is effected by application for injunction (La.) 444a. 

Officers and agents — see Officers and Agents 

Ownership of property held hy agent 

Ptindpal is owner of check in agent's hands, (N. J.) 828d. —of deposit account of 
agent of principal's funds (Mich.) 609d, (N. Y.) 998a, 1046a, (N. D.) 1130d. —of 
proceeds of note payable to agent but belonging to principal (Mass.) 525c. 

Apparent ownership of deposit by agent in his own name protects bank paying out 
on agent's check (Neb.) 796c; and supports banker's lien for agent's debt (Kan.) 
337d. —of notes by agent gives bona fide pledgee the right to hold them against 
principal (La.) 434a. 

Payment 

to authorized agent is payment to principal (111.) 209b, (N. Y.) 907a; even if agency be 
not known to payer (Ga.) 177b; and even if excess payment be made (Kan.) 318a. 
— to collect check is payment to principal, though the check be not indorsed by prin- 
cipal, and agent have no power to indorse (111.) 205e. 

to apparent agent is payment to principal (111.) 209b. 

to agent of undisclosed principal on deposit in agent's name, binds (Neb.) 796c. — by 
application to agent's debt, and settlement with his assignee in bankruptcy on that 
basis, binds principal (Mass.) 565a. 

to agent after termination of agency is not payment to principal (111.) 195c. 

Pleading 

Parent bank may sue in corporate name on note payable to branch, and show true payee 

by express averment (Ark.) 43e. 
Defenses against principal are available in suit by agent (la.) 2S3a. 
General issue waives production of warrant of attorney (Ala.) 2d. 
Ultra vires may be set up by bank, treated as principal for failing to disclose real 

principal, in action on contract for purchase of cotton futures (N. Y.) 1034d. 

Presumption 

of adequacy of deposit to protect all principals exists when agent has made the deposit to 

protect several principals (N. Y.) 1017c. 
of bona fides relieves indorsee from proof thereof until principal has shown fraud in 

agent's indorsement (N. Y.) 892a. 

Principal 

is bound by agent's authorized acts (N. Y.) 897b. 

is not bound by agent's unauthorized acts (Cal.) 71c, (Md.) 502a, (Mass.) 596c. — if 
agent conceal his own fraud (N. Y.) 1097f. —by agent's forgery (la.) 301c, (Mass.) 
559c. — by knowledge imputed to agent as bank trustee (Ohio) 1157d. — by knowl- 
edge of agent who forged checks and himself examined deposit books (N. Y.) 902b. 

is liable to one misled by agent (N. Y.) 912a. —for agent's neghgence (Ky. ) 359c 
— unless there has been election to hold agent alone (N. Y.) 962b. 

is not liableiox agent's criminal acts, if agent's authority has a lawful scope (N.Y.) 901a; 
or unless principal has been negligent in employment of agent (Ky.) 359c. 

is estopped, on failure of bank, to hold drawer of check which agent has had certified, 
instead of paid (111.) 218a. — to hold bank for deficiency in packages of specie received 
from other banks, where agent has so mingled the specie as to prevent identification 
(Pa.) 1177b. —to repudiate paper on the ground that agent had misapplied proceeds 
(Fla.) 136d, (La.) 445a. 

State is bound by lawful, not by unlawfiil act of State agent (Mich.) 599b. 

Corporations axe. liable for agent's acts as natural persons are (N. Y.) 993b. 

Proof 

of agent' s authority noMst be given in action against bank (Minn.) 633d. —to do general 
banking business is not made by producing power of attorney to act at one bank (N. Y.) 
1021c. 

of no reliance on existence of agency is made by showing that goods were charged to 
alleged agent with full knowledge of the facts (Cal.) 90c. 

Purposes of agency 

may include transfer of stock (Md.) 493a, 502c. —demand of payment of bank bill (Me.) 
459c. 



INDEX 7 

AGENCY— Continued 
Ratification 

is effected by failure to object, after knowledge (Ala.) 40c, (la.) 302c, (Me.) 477b, (Mass.) 
550b, (N.' Y.) 1048b. —by receiving benefit (N. Y.) 1019b, (S. C.) 1273a. — 6y mak- 
ing settlement with one assuming to act as agent (Ga.) 171c. — by subsequent authority 
to do similar act (La.) 392a. 

is not effected by payment under protest of claim, previous remittance being misapplied 
by agent (Me.) 477b. —unless principal has knowledge (Ky.) 362c, (Tex.) 1320c. 

is equivalent to prior authority (la.) 308a, (Ky.) 359c, (Miss.) 670f. 

o/"/ra2«]f in procuring check does not necessitate ratification of subsequent forgery (Ohio) 

1152a. 
of unauthorized deposit does not necessitate ratification of unauthorized indorsement (Cal.) 
70c. 

is question for jury (Va.) 1378b. 

Apparent ratification of payment by bank to agent discharges bank (111.) 209b. 

Setoff 

Check collected by agent's agent canndt be set ofi" against debt due agent (Ala.) 37a. 
Bank may set off note of deceased principal against account of agent, carrying on 
business in principal's name, and depositing as agent (111.) 214c. 

Termination of agency 

\is effected hy &&aXh. (111.) 214c, (Mass.) 593a, (Mich.) 618a. —3ji/ principal's application 

for injunction to restrain agent from continuing duties (La.) 444a. — by collector's 

receipt of check for debt due principal (Mo.) 707c. 
does not prevent bank from setting off note of deceased principal against account of 

agent, carrying on business in principal's name and depositing as agent (111.) 214c. 
creates trust in agent's executor, for benefit of principal, as to deposit by agent to meet 

check to principal not presented until after agent's death (Mass.) 593a. 

ALTERATIONS 

(See Forged Instruments) 

ASSIOIVIUEIVT 

Assignee 

stands in assignor's shoes (N. Y.) 910a, 923d, (Pa.) 1204a, (Tex.) 1330c. 

of note held by foreign corporation may commence suit by attachment (N. Y.) 931b. 

having legal title to note may sue (Ala.) 12b. 

must show legal interest in order to recover (Ark.) 43b. 

is bound by assignor's knowledge (Tex.) 1330c. 

of bank has right to make tender by delivery of deed, where charter expired previous to 

completion of contract of sale of land ( Ind. ) 254d. — cannot sue on its bonds where 

charter has been renewed (Ark.) 52c. 
{voluntary) cannot set aside transfers, which assignor could not (Ga.) 164a. 
Right of assignee to sue is preserved by act continuing bank's charter for settlement of 

affairs (Ark.) 43b. 

Attachment 

paid by bank after knowledge of assignment, does not discharge bank (Conn.) 115c. 



Authority 

to assign need not be in writing (Cal.) 89c. 



Consideration 

is imported by seal of bank on deed of assignment (Pla.) 134b. 

Deed 

of assignment referring to schedules annexed as "bearing even dates," schedules having 

no date are deemed to be of same date as deed (Pa.) 1180c. 
(probate) is valid, though not signed by subscribing witnesses (Pa.) 1180c. 
with power of sale after two years, is not in conflict with power of court to compel trustee 

to settle up after one year, upon application made (Pa.) 1180c. 
valid, when signed by some, and assented to by rest of trustees (Ark.) 42c. 

Effect 

Assignment passes assignor's rights to assignee (Mass.) 557d, (Mich.) 614a; who can 
enforce them in assignor's name (Ala.) 25b, (Mass.) 555d, (Ohio) 1149c; but not in 
his own name (Ark.) 49a; and demand by assignor inures to assignee (Ga.) 146c. 

Assignment of debt transfers incidental securities to assignee (Ark.) 48d. 

Assignment of separate judgment against maker does not create trust for paying in- 
dorser (N. Y.) 902a. 

Equitable 

constituted by agreement of bank's president, with assignee of depositor's claim against 
third party, to pay over the amount so assigned upon deposit thereof with bank 



8 BANKS AND BANKING 



ASSIGNMENT— Continued 
Equitable (continued) 

(S. D.) 1275a. —by orders on county given to bank as security for advances, to extent 
of debt, on fund (la.) 290c. See also Check, Effect. 

Fraud 

must be proved by one attempting to overthrow assignment (Fla.) 134b. 
Assignment by debtor without consideration is fraudulent (Me.) 490e, (Mich.) 616b. 

Title 

by valid assignment is sufficiently proved by presenting the notes, mortgage and assign- 
ment to bank where payable (Mich.) 606c. 
Assignee's title is question for jury (N. Y.) 1019d. 

Validity 

Assignment of claims to creditors of bank invalid without action by directors (Ala.) 16c. 
—is not invalidated by subsequent statute (Pa.) 1180c. —of any chose in action, 
may be made by receiver (N. Y.) 893b. —of bank's property may be made by one of 
two banking partners after other partner has absconded (Wis.) 1420a. — if invalid, 
cannot be made valid by use of corporate seal (Ala.) 16c. — (parol) of cause of 
action is valid (N. Y.) 950d. 1026c. 

Whether acts and expressions constitute an assignment is for jury (N. Y.) 1026c. 

Voluntary 

does not work forfeiture of bank's charter (Mich.) 603b. 

ATTACHMENT, OARNISHmENT AND TRUSTEE PROCESS 

Affidavit 

Bank may attach on cashier's affidavit (Ala.) 6c; on indorser's affidavit (Ala.) 20c. 
Bank may be attached on verified bill without separate affidavit (Ala.) 25c. 

Agent 

Principal's money deposited by agent is attachable for principal's debt (Mich.) 626a; 

but not for agent's debts (Mass.) 525c. 
Bank may retain agent's deposits for various principals attached for agent's debts until 
title is judicially determined (Mo.) 761b. 
Bank 

may be garnished under code as a "person" (Tenn.) 1301b. —for debt to municipal cor- 
poration (id.). 
is liable for negligently paying checks against attached account (Mass.) 590a. 

Bank Bills 

Bank bills payable at a branch bank in one state may be attached in a branch in another 

state (W. Va.) 1392c. 
Bank holding bank bills of another bank is not chargeable as trustee (Mass.) 527a. 
Attachments by billholders severally are invalid (Mass.) 534d. 

Bond 

Judgment on bond to dissolve attachment against national bank before judgment is void 

(Ga.) 169a. 
Substitution of valid for defective bond prevents quashing of attachment (Ala.) 6c. 
On judginent against depositor , a savings bank, may be charged as trustee without bond 

(Mass.) 588c. — sheriff, he may assign bond to his judgment creditor (Kan.) 336d. 

Certificate of Deposit 

may be attached for a debt of the payee (Ala.) 32c, (Pa.) 1190a. 

cannot be garnished by depositor's creditor if not subject to draft (Ga.) 176a. — after 
valid assignment (Ohio) 1148c. 

Check 

Parol certification before attachment will not protect bank paying check after attach- 
ment (N. Y.) 970d. 
Trustee process on drawer cannot affect holder's rights (Mass.) 554a, (R. I.) 1255d. 

Collateral 

cannot be attached for debts of pledgee (Colo.) 105a; nor can proceeds of sale of col- 
lateral (Ala.) 37b; but security of principal debtor, pledged to garnishee, may be en- 
forced, subject to latter's lien (Pa.) 1245a. 

Definition 

Trustee process is attachment (Yt.) 1361b. 

Deposits 

Attachable (Pa.) 1240c; though in savings banks (R. I.) 1249c; or of corporations 
(Pa.) 1199c; or held in trust (Mass.) 538a; or held until majority of depositor (Me.) 
477e; or though in wife's name if treated as husband's (Mich.) 626c. 



INDEX 9 

ATTACHMENT, GARNISHMENT AND TRUSTEE PROCESS-Continued 

Deposits (continued) 

JSTot attachable, if pension money (Conn.) 123d; or special deposits to secure drafts 

(Mich.) 621c; or deposits made after summons to meet special checks(Ga.) 156a. 
Defeated by assignment of deposits (Mass.) 572a, 573a; though not in writing or 

consented to by bank (Mont.) 768d. —prior delivery of passbook as security (Mass.) 

568b. —prior discount of drafts (Mich.) 614a. —prior presentment of check (111.) 

208d, 240a, (Mass.) 540e, (Wash.) 1384c. 
Not defeated by direction to apply fund to payment of check in case of attachment 

(Pa.) 1194e. — check certified for depositor and held by him (N. Y.) 1015e. —pay- 

tnent of checks drawn after service of attachment process (111.) 208d. 
Attaching creditor stands in debtor's shoes, as against bank (Mich.) 619b, (Pa.) 1185b, 

1198b. Bank stands in depositor's shoes as to check holders (111.) 240a. 
Lien on deposit created by levy (Cal.) 62f; or garnishment (la.) 290c. 

Discharge 

noi effected by insolvency (Ala.) 28c; contra (Cal.) 80b. — by appointment of receiver 
(Neb.) 785d. —by the expiration of charter (Mo.) 695d. 

Drafts and BUls of Exchange 

Proceeds may be attached in the hands of the collecting agent for the owner's debt 

(&a.) 167c, (N. Y.) 1013d. 
Bank not subject to garnishment on a U. S. draft, until acceptance (Mo.) 698d. 
Garnishee's right to sue on bill held to collect not affected by attachment (Mo.) 701c. 

Exemption 

Negotiable paper, transferred to bank before maturity, exempt (Vt.) 1365b. 
Salary of state treasurer exempt in hands of state disbursing officer (Tenn.) 1289a. 

!Fraud 

To sustain an attachment for fraudulently receiving a deposit, the bank's intent to 

defraud must be shown (Miss.) 688c. 
Funds of cashier acting fraudulently may be attached in assignee bank (Tenn.) 1313b. 

Garnishee 

is liable only for funds of debtor held at service of writ (Mass.) 534b, (Mich.) 628d. 

not liable for interest from demand, if not unreasonably delaying payment of a de- 
posit (Me.) 488e, (Mo.) 698b. 

of bank may set off depreciated notes unless subsequently acquired (W. Ya.) 1389d, 
1390a, 

Bank must protect check holder's right against attachment (Ky.) 374a. 

Bank is not liable to minor for money attached in suit against guardian (N. H.) 815b. 

Return of execution need not show debtor's property in hands of garnishees (Mo.) 695d. 

Gift 

of deposit to wife not relieved from attachment for husband's debts (Mich.) 616b. 
of money to wife is presumed bona fide as against attaching creditor (Ark.) 54c. 

Insolvency 

Insolvent's property may be attached (Ala.) 28c, (Minn.) 657b, (Neb.) 785d, (N. Y.) 
990b; before appointment of receiver, in case of state bank (Neb.) 785d. 

Bank continues to exist after forfeiting corporate rights by insolvency, so far as to en- 
able creditors to attach its property in another state (N. Y.) 990b. 

After property has passed into the hands of a receiver or assignee, attachment is in- 
effectual (Cal.) 62f, (Conn.) 115c, (Ind.) 279a, (Md.) 495d, (Neb.) 802a; when iden- 
tity is lost (N. Y.) 93 9d; contra (La.) 403c, (W. Va.) 1392c; or property is in bank 
examiner's hands (Neb.) 802a. 

Insolvency and receivership do not abate attachment (Ala.) 28c, (Neb.) 785d; contra 
(Cal.) 80b. 

Jurisdiction 

Property of a national bank may be attached through the state courts (Ala.) 28c, 

(N. Y.) 994b; contra (Cal.) 95a, (111.) 218c. 
State courts have jurisdiction over attachment bonds of foreign banks (Ga.) 165c. 
Non-residence of an insolvent bank's debtor entitles its creditors to attachment (Tenn.) 

1293b. 

Ifational Banks— see National Bank Act 

INotice 

of attachment to guardian is notice to ward (N. H.) 815b. 

of withdrawal to co-operative bank not needed under trustee process (Mass.) 582c. 

firom payee not to collect certified check does not affect liens of attaching creditors 

(Ala.) 31c. 
Attaching creditor is bound by notice of prior liens (Mmn.) 640b. 
Bank cannot defeat attachment by discounting note after notice (Vt.) 1350d. 



10 BANKS AND BANKING 



ATTACHMENT, GARNISHMENT AND TRUSTEE PROCESS— Continued 
Pleading 

Answer by garnishee bank must be through executive, and under seal (Ala.) 9c, llf. 

Priority- 
is according to order of issue (La.) 394d. 
may be obtained by collecting bank on notes held by it (la.) 294b. 

Promissory Notes 

exempt from trustee process if transferred to bank before maturity (Vt.) 1356a, 1365b. 
subject to trustee process for excess of note over debt, if collateral (Vt.) 1358a. 
discounted after notice of attachment do not defeat trustee process (Vt.) 1350d. 
attached by bank holding for collection give priority (la.) 294b. 
garnisheed as indorser's property, do not make collecting bank liable for non-payment 

(Colo.) 101c. 
cannot be bought back by attachment debtor, after service of the writ, when discounted 

before service (111.) 208d. 
may be attached, though held as collateral (Vt.) 1353d. 
Assignee of note held by foreign corporation may begin suit by attachment (N. Y.) 931b. 

Rights of Creditor 

Creditor with notice succeeds only to debtor's right (Minn.) 640b, (Pa.) 1226b. —can- 
not garnish personal representatives of deceased debtor (W. Va.) 1390d. 

Stock 

subject to attachment (Ky.) 347c, (La.) 385b, (Mass.) 523b, 582c; even in hands of 
pledgee (Mass.) 520d; contra, under statutes (Me.) 463a, (Pa.) H78e. 

cannot be attached for vendor's debts, though not transferred on books (Mass.) 523c, 
569a, (N. D.) 1127b, (Pa.) 1170c; contra under statute (Mass.) 541c, 574a. 

Title 

Ownership of attached deposit is a question for the jury (Mich.) 626c. —may be shown 

to be in depositor's principal (Pa.) 1193d. 
Order of a justice of the peace, that the garnishee pay money into court, is not a final 

determination of the rights of the garnishing creditor (Kan.) 326c. 

What subject to (see Collateral) 

Debt due non-resident in foreign state (Vt.) 1365b, (W. Va.) 1392c. 

Writ 

Attachment not invalidated by defect of parties (Mass.) 590a, (Mo.) 695d; by misde- 
scription of parties (Mass.) '556d; contra (Me.) 477a. 

ATTORNEY 

(See Officers and Agents) 

ATTORNEYS' FEES 

Where claims are assigned to bank, its attorney may charge for services in collecting, 
performed after, but not before, the assignment (N. Y.) 1020a. 

ATTORSfEY-GEWEKAL, 

(See Public Officers) 

BAIL,]?IE]VT 

Exchange of money for a check is not a bailment (Conn.) 120c. 
Safe deposit company must use ordinary care (Cal.) 99a. 
Special Deposits — see Deposits, Special. 

BANK BILLS 

Confederate 

Bills used as confederate currency, not issued in aid of that government (Ga.) 155d. 
Depositor of confederate money may give evidence of value (Ga.) 157a. 
Stockholder is liable on bills issued in aid of confederate government (Ga.) 157b. 

Counterfeit — see Forged Instruments 

Date 

is immaterial (N. Y.) 852a, (Tenn.) 1308b. 

Definition 

Bank bills are a contract that bank will pay on demand (Ind.) 253c. — are personal 
property for purposes of taxation (Mo.) 701b. 



INDEX 11 



BANK BILLS— Continued 
Definition (continued) 

Bank bills become promissory notes on bank's insolvency (Vt.) 1348b. 

"Bills " mean such as are properly issued, countersigned and registered (Mich.) 603d. 

Drafts on another bank are not bank bills (Mass.) 519e. 

Figures denoting the number are not an integral part of bank bills (Tenn.) 1308b. 

"Lawful money" in bank bill means lawful at time of redemption (N. Y.) 932a. 

National bank bills constitute United States currency (La.) 432d. 

Paper in form of bank bills issued by individual are his promissory notes (Ind.) 257e. 

State bank bills are not bills of credit (Ark.) 42b, (S. C.) 1258c. 

Demand 

before suit is necessary (Ga.) 144d, (N. C.) 1107b, (N. Y.) 853a, (Tenn.) 1287c, 1288e; 

contra Xa. J.) 821a. 
of payment is sufficient (Me.) 459c. 

sufficient, when made on partner (la.) 284b, or by agent (Me.) 459c. 
necessary before closed bank can plead limitations (N. H.) 811c. 
unnecessary, to Kcower a.mo-ant paid for bank bills when worthless (la.) 284b, (Me.) 462c, 

or stolen and with forged indorsements (Mo.) 497b. 
Action amounts to demand (Ga.) 144d. 
Averment that bank refused payment demanded by plaintiff is averment of refusal by 

bank officers (Mass.) 526b. 
Separate bills require separate demands (La.) 390a. 
Protest proves demand, but unnecessary to secure interest due from demand (La.) 390a, 

390c. 

Deposit 

of another bank's bills received as money, is received at bank's own risk (Del.) 128b. 
in court, of bank bills sued on, before final judgment, unnecessary (Ga.) 147b. 

Depreciation 

does not destroy bank bills' function as circulation (Miss.) 686a. 

does not prevent a full recovery on maturity of note to bank (Miss.) 669a. 

Gold Standard is the measure of value in absence of U. S. currency (Tenn.) 1304c. 

Bank dealing in depreciated bills presumed to know their value (111.) 185a. 

Discharge 

not effected by unexecuted agreement to accept property in exchange (Mass.) 535a. 

Evidence 

of debtor's transactions admissible to show when he acquired bank bills offered in pay- 
ment (Pa.) 1182a. 
of value admissible in absence of evidence of kind of money loaned (Miss.) 673e. 
Copies of bank bills sued on must be filed (Ind.) 253c. 

Stockholder's declarations on delivery of bank bills to its assignee admissible (Ga.) 148a. 
Purchase at holder's risk shown by unusual rate of exchange (la.) 283d. 
Possession of bank note to order and indorsed, prima facie proof of property (La.) 376d. 
Plaintiff -ravi^t prove specific bills sued on (Conn.) 112a. 
Execution must be proved by holder (Ga.) 144e. 

Holder 

presumed to be bona fide (Mass.) 540a. 

Bank holding notes of another bank is not chargeable as trustee (Mass.) 527a. 

Innocent holder cannot give title to stolen bills to one aware of theft, but may recover 

thereon (Conn.) 117e. — z.s not one taking mutilated bank note requiring names, dates 

and amounts to be reprinted (Ky. ) 354b. 

Rights 

May sue bank or resort to trust funds (Ind.) 253c. — in trover for specific bills (Ind.) 

247b. 
May recover consideration paid for illegal issue (Ind.) 252c. —full amount of bills 

issued on specie basis (S. C.) 1264d. — on bills acquired after commencing suit 

(Ohio) 1136a. —principal, interest and 10 per cent damages for failure to pay in 

specie (N. Y.) 855a. — on bills purchased after appointment of receiver (Me.) 478b. 

— on old bills adopted by new bank of same name as old (Mass.) 519b. 
Cannot recover against receiver on bond given for their security to bank comptroller 

(Wis.) 1404c. —for loss to assignor holding when bank failed (N. Y.) 865d. 
May share 'va. assets of insolvent bank (Mass.) 531a, 534d, (S. C.) 1261b, (Va.) 1372d; 

or in assets according to value paid (Ga.) 154b. — with stockholders of insolvent 

bank, who are not billholders (Ga.) 154b. 
May set off bills in action by receiver (Mass.) 544a, (Pa.) 1182a. 
May hold original obligor on security given for holder's benefit (Wis.) 1404c. 
Cannot enforce judgment in suit by bank comptroller for his benefit for more than 

actually due (Wis.) 1406d. 
Cannot require comptroller to sue without a reserve for costs (Wis.) 1408c. 
Has preference over other creditors of insolvent bank (Ga.) 154a, l54b, (Ya.) 1372d; 
contra (Mass.) 540d, (Tenn.) 1291c. 



12 BANKS AND BANKING 



BANK BILLS— Continued 
Interest 

allowed after a suspension of specie payment without demand (Ohio) 1136a. 

not allowed against stockholders (Mass.) 534d; contra (Mass.) 535a. —on protested notes 

where bank resumed specie payment (La.) 417c. 
Billholders are entitled to interest from demand (Ark.) 50e, (La.) 414b, (N.C.) 1108b, 
(N. Y.) 879a, (Pa.) 1198c; or from commencement of action (Pa.) 1179b. 

Issuance 

Delivery of foreign bank bills for redemption is not issuing as money (N. Y.) 927b. 

Liability 

on defunct bank's bills does not accrue to bank issuing them without their adoption by 
it (Mass.) 519b. 

Loss and Mutilation 

Severance of bank bill destroys its negotiability (111.) 181a, (N. Y.) 861d. 

Mutilation of names, dates and amounts, is notice of forgery (Ky.) 354b. 

Proof of ownership is necessary to recover interest and costs (Va.) 1368b. 

Owner may recover after proving facts and giving indemnity (Conn.) 109d, (Ga.) 146b, 
(Ky.) 353b, 354a, (La.) 375a, 390d, 398d, 410a, (Mass.) 546d, (Tenn.). 1289b, 1308b, 
(Va.) 1367a, 1368b. —without giving indemnity (Ala.) 26c, (N. Y.) 930b. —without 
regard to incorrect description (Ala.) 26c. — ?'« debt or assumpsit (Tenn.) 1289b; or 
in equity after demand and sufficient identification (Tenn.) 1286b, (N. C.) 1106d. 

Payment 

Debt due a bank may be paid in its own bills (La.) 403a, (Miss.) 678b, (N. Y.) 857d; to 
assignee (Miss.) 683d, (N. C.) 1108c; or to receiver (Vt.) 1348d. 

Note payable "in bank notes received in deposit," may be discharged in notes of least 
value then receivable (Ky.) 344e. 

Note is payable in depreciated currency at its nominal value where such was the consider- 
ation (Ky.) 350b. 

Bank bills can be tised to satisfy judgment only by creditor's authority (Miss.) 669d. 

Suspension of specie payment must be averred to sustain a penalty judgment for refusing 
to paj; a single bill (Ohio) 1137a. 

Note assigned or transferred by a bank is payable in the bank's bills (Tenn.) 1291c. 

Repeal of act allowing payment of taxes in bank bills puts burden on holder to prove 
ownership before the repeal (Tenn.) 1291d. 

Issuing bank is liable for default in payment of its notes payable at another bank (Tenn.) 
1296b. 

Costs cannot be paid in valueless bank bills (Vt.) 1348d. 

Bills of insolvent bank will not pay a bill in hands of its director (Vt.) 1352b. 

Loss in paying in bills of insolvent bank falls on party so paying (Vt.) 1348b. 

Post-notes 

are not bank bills (Mass.) 534d. 

Protest 

admissible on question of holder's bona fides (Conn.) 117e. 

Bank bills require formal protest (La.) 428d. —payable bX a. bank where no one is to be 
found, may be protested without demand (Tenn.) 1291b. 

Owner of protested bill filed with auditor is entitled to proportion of trust fund with inter- 
est from time of protest (111.) 188c. 

Purchaser 

Caveat emptor applies to purchasers (111.) 185a. 

Illinois currency. "Illinois currency" is paper passing as coin (111.) 186c. 

Bedemptiou 

can be made out of stock in state treasurer's possession (Mich.) 603c, 603d. —required 
only on production and delivery of unidentified bank bills, though bond of indemnity 
be offered (Mass.) 546d. 

of one bill at time of tendering bag of coin without recourse for error is not legal re- 
demption (Mich.) 603c. 

Tender of silver half dollars is redemption (Mich.) 604a. 

Payment in small coin is redemption (111.) 183d. 

Package of bills presented for redemption is single obligation (111.) 185d. 

Lack of diligence may amount to refusal (N. Y.) 857c. 

Bill for redemption is Q.r<t6S.tox's,\i\\\, in which holders may join and bank represent stock- 
holders (N. C.) 1109d; and must state amount of outstanding bills (Ga.) 147c. 

Protest for non-redemption must show affirmatively fault of bank (111.) 183d. 

Setoff 

Bills of an insolvent or dissolved bank cannot be set off against debts to bank (Conn.) 
lllc, 115b, (Mass.) 519a, (N. H.) 813a; if acquired after insolvency (Ky.) 351c, 
(N. Y.) 923c, (Va.) 1373a, 1373b, 1375a; or if after service of writ of attachment 
(W. Va.) 1389d, 1390a; contra (Ga.) 140a, 150a, (N. C.) 1108b, 1108c, (Pa.) 1191b 



INDEX 13 



BANK BILLS— Continued 
Statute of Limitations 

bars actions on bank bills (Ga.) 148b, 160b, (Mo.) 706c; contra (Ga.) 155c, (N. C.) 

1112c, (Tenn.) 1300b, 1304a. 
does not run against bank bills until demand (Ga.) 144d, (Tenn.) 1287c, 1288e; and 

bank's suspension is not equivalent to demand (Tenn.) 1288e. 
Creditor's rights depending on judgments, immaterial that action is barred (Ga.) 159b. 

Stockholder's Liability — see Stockholder's Liability 

Tender 

does not entitle holders to a preference (Conn.) Ilia. 

must be before judgment (Miss.) 675b. 

of bank bills is not a tender of cash (N. J.) 823a; contra when made to bank issuing 

them (Pa.) 1182a. 
to state of state bank bills, issued during civil war, proper (Tenn.) 1306d. 
Notice of withdrawal of confederate money is not a tender (Ga.) 157a. 
Plea of tender should state bills were current (111.) 181c. 

Transfer 

of bank bills payment refused is not putting them in circulation (La.) 384a. 

at a discount is not notice of fraudulent issue (Mass.) 535a. 

by teller to teller of another bank cannot be followed when mingled with funds of latter 

bank (S. C.) 1263e. 
Title passes by delivery (Mass.) 541a. 

Purchase at a discount does not invalidate transfer (la.) 284b. 
Transferrer must bear loss of unknown failure of issuing bank (Me. ) 462c. 

Usury— see Usury 

Validity 

Valid, if not device to circulate illegal bills (Ala.) 12c. — though fixed percentage of 
capital stock was not paid in specie (Ga.) 147b. — z/" issued as confederate currency 
under charter granted in 1850 (Ga.) 155d. ^z/"issued for circulation by an individual 
(Ind.) 257e. — i/" issued without cashier's signature (Ohio) 1131b. — if issued after 
withdrawal from Union and during civil war (Tenn.) 1300a, 1304a, 1306a. 

Invalid as to one participating in the illegal organization of a bank (Ga.) XATla.. — »»- 
less signed by president (Ga.) 153a, (Mass.) 520e. — i/'issued under unconstitutional 
law (Ind.) 249b. —if issued without securities on file with auditor (Ind.) 252c. —if 
issued by officers of defunct bank (Mass.) 519b. — if to be paid in foreign bank bills 
(Mass.) 519d. — j/" given for illegal consideration (Mo.) 695a, 695b. — unless counter- 
signed, registered and secured with comptroller (N. Y.) 878c. — ^foreign bills of less 
than $5 (N. Y.) 893a. — z/' originally void regardless of subsequent legislation (Va.) 
1367b; contra (N. Y.) 912a. 

Illegal bank bills make limited partners liable as general partners for circulating (Ala.) 
18b. — secured by trust deed, make deed voidable (N. Y.) 878c. — do not make con- 
tract to redeem illegal (la.) 284c. — issued by cashier may be recovered in absence 
of fraud (Mass.) 539d. — subsequently declared invalid prevents recovery of value 
while legal (Tenn.) 1294a. 

Legal tender. Bills of state bank becoming national bank, not legal tender (Pa.) 1198a. 

Warranty. Implied warranty of validity by transferrer (Va.) 1371c. 

Value 

Market value taken, when payment is to be made in current funds (Ark.) 47b. 

Suspension of bank shows bills valueless (la.) 283d. 

Bank bill is at par when it is equal to gold and silver coin at place of payment, for all 

purposes for which bank paper of that city could ordinarily be used (Pa.) 1188d. 
Bank making loan in depreciated bills, only specie value can be recovered (Miss.) 676c. 
No implied warranty on sale or exchange of bank bills current money (Va.) 1371c. 

Warranty 

that bank will continue solvent is not shown by informing recipient that bills may be 
exchanged for bills of another bank (Va.) 1371c. 

Withdrawal 

Depositor is not affected by certificate to withdraw issue, without notice (111.) 187d. 

BAIVKS 

Banker 

A banker is not a corporation under the general banking law (N. Y.) 917d. 

Branch 

Identity. A bank and its branches form but one corporation (Ark.) 45d, 46b, (La.) 
390a, (Mo.) 706b; and are all subject to the parent bank's charter (Va.) 1374a. 

As Agent. All dealings by or with a branch, if not beyond its powers, bind the parent 
(Ark.) 45c, 45d, 46b, (Mo.) 706b, (N. C.) 1124d, (W. Va.) 1393a; and the parent 
may ratify the unauthorized acts of the branch (Miss.) 670f. 



14 BANKS AND BANKING 



BANKS— Continued 
Branch (continued) 

Negotiable Paper. A bank is liable for bills payable at its branch (La.) 390a, (N. C.) 
1107a, (Tenn.) 1284d. Notes of branch bank cannot be assigned by its president 
(W. Va.) 1393a. The branch is owner and holder of bills discounted by it (Tenn.) 
1286d. Notes payable at a branch bank in one state are attachable in a branch in 
another state (W. Va.) 1392c. 

Establishment. State alone can question bank's power to create branches (N. C.) 1124b. 

Actions. The parent bank represents the branch in all actions (Ark.) 43e, (N. C.) 1107a, 
(Va.) 1370c, 1371a; and in proceedings on charter (Va.) 1374a. 

Estoppel. Parent bank is estopped to deny existence of branch (N. C.) 1124d. 

Removal. A branch may be moved only by legislative authority (Tenn.) 1292d. 

Building and Loan Associations 

Loan made to member is not a partnership transaction (S. C.) 1272a. 

Consolidation 

Several banks may unite (la.) 284b, without affecting depositors' rights (Cal.) 69d 

De Facto 

Definition. Long and unchallenged exercise of bank powers establishes the de facto ex- 
istence of the bank (Kan.) 314b. Discounting notes and taking deposits is sufficient 
to constitute a bank (Mass.) 552d. Indorsing bank bills not sufficient (111.) 180c. 

Incorporation. Articles of incorporation and exercise of powers thereunder constitute 
a bank a de facto corporation (Neb.) 787b. Substantial compliance with the incor- 
porating act is sufficient (id.), (Ohio) 1141b. Defective articles of incorporation are 
admissible to show corporation de facto (Cal.) 80c. 

Charter. Bank may exist de facto without charter (Ind.) 251b; though the charter be for- 
feited (S. C.) 1260b. But a certificate of authority is necessary (Mass.) 558b; contra 
(Kan.) 333a; and must be filed (Kan.) 327a; contra (N. Y.) 1058b. On plea of nul 
tiel corporation, proof of charter and use sufficient (Miss.) 673d. 

Collateral Attack. A de facto bank cannot be attacked collaterally (Kan.) 314b, (Mo.) 
694f, (Ohio) 1139a. 

Estoppel. One dealing with a de facto bank is estopped to deny its corporate exist- 
ence (Mo.) 694f, (Ohio) 1139a. A bank that has incurred liabilities while exercising 
banking powers, is estopped to deny its corporate existence (Cal.) 82a, (Mich.) 616a, 
(N. Y.) 912c, (Ohio) 1138d. 

Officers. The officers of a de facto bank are liable for violating the banking laws (Cal.) 
80c, (Kan.) 338a. A mortgage to the president of a de facto bank is not binding 
unless ratified (N. Y.) 879b. 

Statutes. An unchartered bank is bound by statutory provisions as to interest (Ohio) 
1138b; and as to receiving deposits when insolvent (111.) 209c. Statute of Limita- 
tions does not run against quo warranto (Ind.) 262d. 

Definition 

Discounting and crediting, subject to check, make corporation a bank (N. Y.) 986e. 

Bank is not a trustee (Miss.) 675a. 

Issuing bills is an essential banking power (N. Y.) 973c. 

"Person" in statute includes bank (Ala.) 6c. 

"Bank" in Code of 1852 includes unchartered institutions (Ind.) 251b. 

Dealing in and lending on land is not banking (111.) 225b. 

Dissolution 

Organized under unconstitutional laws, bank cannot exist as corporation (Mich.) 602d. 
Mis- or non-user of franchise, not dissolution for collateral attack (Ind.) 247a. 

Examination 

Experts cannot be appointed ex parte after the court has finally authorized examination 
of bank without experts (La.) 437d. 

Loan Associations 

Loan and discount associations are not banks within state constitution (Cal.) 80a. 

Investment Companies 

Stockholder in, not liable under Banking Law for double liability (la.) 809b. 

National Bank (see National Bank Act, Powers of Banks) 

is a quasi public institution (Pa.) 1211b; and independent of state legislation (Pa.) 

1197a; but not exempt from state process (N. Y.) 961a, 964a, (S. C.) 1268b. 
Existence begins when the auditor's certificate is made (Pa.) 1202c. 

Of Issue 

Interest can be charged by banks of issue only at legal rate (Pa.) 1214d. 
Joint stock companies, under the Act of 1849, ch. 226, doing banking business and issu- 
ing circulating notes, are banks of issue (N. Y.) 915a. 



INDEX 15 



BANKS— Continued 
Private Bank 

is not a bank within meaning of a note, "payable at any bank" (Mass.) 553c; is taxable 
as a bank (Ohio) 1143a; but not for the average deposits of customers (la.) 288a. 

Members are liable to depositors until notice of withdrawal (Pa.) 1207a; and may waive 
articles of partnership as to third persons (Miss.) 688b. 

Fraudulent partners in insolvent bank are liable for its indebtedness (Mich.) 598b. 

Settling partner, on dissolution, cannot give firm note (Mich.) 625d. 

Rights of Creditors, to share in the assets of a debtor's private bank, cannot be im- 
paired by subsequent legislation (Kan.) 339b. 

Dissolution occurs when bank ceases to do its business as organized (Mich.) 625d. 

Bond given to a private banking company cannot be recovered on (Pa.) 1215d. 

Statute relating to banks does not apply to private bankers (N. Y.) 1098c. 

Savings Banks 

Charter describing bank as savings bank does not make it one (Tenn.) 1308a. 
Benevolent society does not include savings banks (Minn.) 634a. 
Depositors are principals and bank is their agent (Conn.) 120b. 

Conversion of deposits into stock by femes covert and minors does not make institution 
a savings bank (Tenn.) 1308a. 

State Banks— see State Banks 

Successive Banks 

Succession by reorganization makes a distinct corporation (111.) 219d; having rights of 

old bank (Mich.) 620c. Stockholders and bank are estopped to question legality 

of reorganization (Cal.) 69c. 
Forfeiture of debt for usury does not apply, under the Free Banking Act, to succeeding 

bank under charter forfeiting interest only (Pa.) 1213d. 
Beginning oi rLa.\\ons\. bank is when its certificate is made (Pa.) 1202c. 
Firm articles do not apply to deposits with preceding or subsequent firm (Pa.) 1225a. 
Change of state to national bank does not destroy its corporate existence (N. Y.) 979c, 

1012c; nor discharge its pending contracts (N. Y.) 1012c; nor defeat its remedies 

(Pa.) 1201b; nor invalidate its mortgages (Neb.) 773c; nor relieve it from accrued 

taxes (Pa.) 1202c. 
National bank succeeds to assets of state bank (N. Y.) 947a; and may sue in its name 

(Md.) 508a; unless action is pending (N. Y.) 947a; national bank is liable to state 

bank's depositors (Neb.) 793e; but only by agreement where but part of the assets 

were taken over (Neb.) 794a. 
The successor bank is liable to the old bank's depositors (111.) 219d, (Mo.) 725a, (Neb.) 

771b, and billholders (N. C.) 1109d; contra unless bills adopted (Mass.) 519b; contra 

as to all creditors in absence of fraud (Neb.) 792a; and contra where part only of the 

assets have been taken (Neb.) 791d. 
Private bankers, though succeeded, are liable to depositors (N. Y.) 934b. Successor bank 

is responsible for bonds specially deposited in old bank (111.) 219d. 

Trust Companies 

have power to enforce notes given to secure a loan (N. Y.) 1005d. — {New York) to dis- 
count or purchase notes (Ark.) 60b. — to borrow money and give note to secure the 
debt (N. Y.) 910a. —to pledge bonds (N. Y.) 910a. —to issue bonds to meet certifi- 
cates of deposit (N.Y.) 914c. —fo use "trust" in their corporate names (N. Y.) 1056a. 

cannot receive money on general deposit (Mo.) 757b. 

cannot purchase own stock out of impaired capital (Conn.) 122b. 

m.ust report (N. Y.) 1101c. 

are estopped, after certifying checks, to plead incapacity to certify others (Mo.) 765b. 

under Gen. Banking Act of 1838, not affected by provisions of Gen. St. as to moneyed 
corporations (N. Y.) 914c. 

Claiming to do a banking business, is no ground for injunction (N. Y) 1043a. 

Negligence in lending depositors' money makes the company liable (Utah) 1346a. 

Recognition by the legislature of their user of powers, by amendments relative to those 
powers, does not create such powers (Mo.) 757b. 

"Unauthorized Bank 

Guaranty of note is treated as an indorsement (Kan.) 333a. 

A religious society cannot engage in the banking business (Ohio) 1151b. An institution 

that is not even a de facto bank cannot issue circulating notes (Ind.) 252c. 
Those who exercise banking powers without authority are personally liable (N. C.) 1116b, 

(Ohio) 1151c; in debt (N. C.) 1116b, (Ohio) 1138d. 
Cashier is liable to stockholders for defalcation (Va.) 1369b. 

Stockholders are not liable for acts which they have not authorized (Ohio) 1142b. 
Isolated acts do not necessarily constitute unauthorized banking (N. Y.) 955a. 

Unincorporated Bank 

is not a legal entity (Neb.) 804a, 804d; and its members may be sued as partners (la.) 

296d, (Kan.) 327a, 327b. 
Credit given may be rescinded (N. Y.) 1072d. 



16 BANKS AND BANKING 



BANKS— Continued 

Umncorporated Bank (continued) 

Acts to restrain unincorporated banks do not apply to individuals (N. Y.) 851a. 
Partner in an unincorporated bank is a competent witness for it (Miss.) 671a. 

United States Bank 

is created under constitutional act (Conn.) 109a. 

The U. S. Circuit Court has jurisdiction of suits by the U. S. Bank (Conn.)"109b,109c. 

BAHVK COMMISSIONEBIS 

(See Public Officers) 

BAIVK COMPTROIiliER 

(See Public Officers) 

BANK EXAMi:9rEB 

(See Public Officers) 

BANKRUPTCY: ACT 

(See Statutes) 

BANK SUPERVISOBS 

(See Public Officers) 

BANK VISITOR 

(See Public Officers) 

BILL, OF CREDIT 

As defined in the United States Constitution, bill of credit is a note or bill issued exclu- 
sively on the credit of the State (S. C.) 1258c. 
Bank notes, issued by state bank, are not bills of credit (Ark.) 42b, (S. C.) 1258c. 

BILL.HOLBERS 

(See Bank Bills) 

BILLS OF EXCIIANC;^ 

(See Drafts and Bills of Exchange) 

BILLS OF LADINO 

Collection bank 

is bound to hold bill of lading to secure payment of sight draft (Fla.) 137b, (Mich.) 
631a, (Teun.) 1311b; or acceptance of time draft (Fla.) 137b, (Tenn.) 1311b. 

Independent Contract 

as to bill of lading is provable by parol (Minn.) 637b. 

Indorsement of bill of lading 

is not equivalent to indorsement of negotiable paper (Minn.) 637b. 

in blank carries title to goods (Mich.) 631a. 

and delivery passes right to possession of goods (S. C.) 1268c. 

Transfer of bill of lading 

attached to discounted draft is delivery and change of possession of goods (N. Y.) 966a. 
—carries title to goods (N. Y.) 966a; if draft be not paid (N. Y.) 1079c. —creates 
valid lien on goods, paramount to subsequent levy (Ky.) 355e. —puts transferee in 
position of mortgagee in possession (N. Y.) 966a. 

BOARD OF CURRENCY 

(See Public Officers) 



INDEX IT 



BOIVDS 

(See also Surety, Bonds) 
Ass^ment 

of bond has all the incidents attached to other assignments (Pa.) 1182b. 
Assignor of negotiable bonds cannot sue to assignee's use (Ark.) 41a. 

Bona Fide Holder 

Holder in good faith, for value, may retain bonds valid on face as against former 

owner (Conn.) 124c, (La.) 449a, (Mo.) 713a, (N. Y.) 962c, 1024d. 
Notice of equities binds the holder (111.) 219d, (N. Y.) 986c. 

Consideration 

may be a preexisting debt (Conn.) 124c. 

Construction 

Conditions may be construed separately (Ark.) 48d. 

"Cashier," added to name of payee, is merely descriptive (N. C.) 1104c. 
Payment, where bond is payable at a certain time or after demand, must be made after 
demand (N. Y.) 989a. 

Coupons 

Detached coupons are treated as money or bank bills (N. Y.) 969a. 
Demand is unnecessary if debtor has left no funds at the place of payment (La.) 418b. 
Redemption of other coupons at less than face, acquiesced in, does not estop bond- 
holder from recovering full amount (La.) 418b. 

Demand 

Not necessary to fix liability of state on its bonds (Ark.) 52c. 

Destruction 

of bonds does not destroy beneficial interest (N. J.) 824a. 

Fraud 

cannot be predicated of a bond given to enable a bank to make a better showing,, 
when it constitutes an available asset (N. Y.) 989a. 

Interest 

State is liable for interest only by express agreement (Ark.) 52c. 
Restrictions as to interest after maturity are valid (La.) 421c. 
Failure to pay, by bank, no forfeiture, where quo warranto lies (Ark.) 44d. 
Interest on bonds deposited with state auditor is not appropriated absolutely to bank's- 
taxes (Ind.) 253d. 

Payment 

Foreign money called for may be paid in its equivalent (La.) 418b. 

Notice of non-payment need not be given the guarantor by the obligee (S. C.) 1260c. 

Agency for collection not created by naming bank as the place of payment (N. J.) 835c^ 

Pledge 

Transfer of pledged bonds transfers the debt also (Ark.) 53d. 

Proceeds of bonds illegally hypothecated cannot be retained by pledgee (Ark.) 53d. 

State 

Debts due state are payable in state bonds (Ark.) 52d. 

Sale of state bonds is presumably authorized by the state (N. Y.) 900d. 

Surety— see Surety 

Title 

Receipt of payment is not conclusive evidence of ownership (Mass.) 561c. 

United States bonds 

Taxation — see Taxation, Bonds. 
Negotiability is an incident (Mo.) 713a. 

Validity 

Mortgages are not essential to the validity of bonds (S. C.) 1260c. 

BOOKS 

Admissible 

in criminal prosecution of officer (Cal.) 80c, (la.) 311a. 
as evidence for bank (Cal.) 81b, (Ga.) 149b. 
to show amount of account (Ind.) 270d, (Mass.) 521d. 
to show account stated (Utah) 1345c. 

Admitted 

contrary to code are conclusive, unless objected to at trial (la.) 297c. 
are conclusive as to genuineness (Ga.) 141c. 



18 BANKS AND BANKING 



BOOKS— Continued 
Admitted (continued) 

Books kept by former cashier cannot be admitted (Me.) 475a. 
Cash books prima facie evidence of cash on hand (Cal.) 80c. 

Entries 

are not conclusive as to depositor's title (Kan.) 317a, (Me.) 462a, 468d, 487d, 488a, 
490d, (N. H.) 812a, (N. Y.) 850c, 853c, 951c; nor as to title to note (N. Y.) 1033a; 
nor as to outside facts (Ga.) 146c, (N. Y.) 894b. 

estop bank (Pa.) 1226d; or its officers (N. Y.) 986c. 

are written evidence of debt under Statute of Limitations (111.) 215a. 

are admitted by silence (111.) 232c. 

as to similar transactions may be shown to explain course of business (N. Y.) 987a. 

by cashier or clerk are admissible (Del.) 127a, (Ky.) 353a, (Me.) 460c, (Mass.) 521d; 
contra (Pa.) 1173a. 

of cashier's deficiency need not be made when paid (Me.) 466a. 

must be proved by maker if living and within reach of process (Ky.) 362b. 

proved orally are competent as defendant's declarations (la.) 303b. 

in stock book, unattested, of transfer of stock are admissible as evidence (Me.) 476a. 

Conclusions of witness as to book-entries are not evidence (Ky.) 362b. 

Examination 

can be compelled by mandamus (N. Y.) 865a; but not without show of right and of 
proper purpose (La.) 390b. 

Who has right. Directors have equal right (N. Y.) 865a. Stockholders not limited by 
statute (Mo.) 740d. Sheriff has right (Ind.) 267d. Attorney-general has no right 
(Cal.) 70d, 70e. Showing absence of entry of receipt of proceeds on drawer's book is 
inadmissible (Md.) 508c. Bank claiming fund may have order to inspect books of an- 
other claimant (N. Y.) 1075c. Failure of examination must have been damage to 
bank, to estop depositor who delayed examining (Tex.) 1325b. 

Passbook 

is merely a receipt (Kan.) 324b, 324c, (N. Y.) 1018b, 1057b. 

is not negotiable (Cal.) 64a, (Conn.) 123c. 

is admissible to show time and amount of deposit (Cal.) 82b, (Kan.) 336b; even if in 

form of envelope (Mass.) 588a; is evidence of debt (111.) 216c, 239c, 241a, (N. Y.) 

1050d; but not best evidence of balance (S. C.) 1269d. 
is not conclusive (La.) 409d, (Mass.) 568d, (Mo.) 765d, (S. C.) 1263e. 
is book of original entry (Mich.) 617a. 

is statement of claim when written up and returned (Mo.) 755a. 
■must be examined by depositor to detect forgeries (N. Y.) 982a, (Tex.) 1325b. 
containing notice of tim-e within which to notify bank of errors, does not make a Statute of 

Limitations (N. Y.) 1076b. 
mjxy be used to refresh memory (Cal.) 82b. 
Entry in, gives rise to presumption of deposit (La.) 409d. 
Receipted for, by illiterate man is not conclusive as to person he intended to deposit 

with (Neb.) 806c. 
Possession of does not show right to withdraw (N. Y.) 1040b; unless rules so provide 

and forgery is not easily discovered (N. Y.) 971c. 
Depositor is not negligent by using due care in examining passbook (N. Y.) 1076b. 
Production of, on demand of payment may be required by by-law (N. Y.) 1015c. 

Production 

cannot be obtained by subpoena duces tecum to clerk not in control (N. Y.) 854d; or to 
cashier (N. Y.) 856b. 

BVRDEIV OF PROOF 

(See Pleading and Proof) 

BY-L,AWS 

Assent 

Holding bank book with by-laws in it may be taken as assent thereto (Yt.) 1361c. 
Statutory requirement, as to payment of deposits, cannot be changed by by-law unless 
depositor assent (Mich.) 623d. 

Construction 

By-law authorizing retention of dividends on shares of stockholders indebted to bank, 
does not extend to full paid shares equitably transferred with bank's knowlede-e orior 
to debt (Mass.) 523a. ^ ^ 

By-law requiring witnesses to transfer of stock by indorsement, construed as requiring 
signature of witnesses (Me.) 480d. 

Construction of by-law is for court (S. C.) 1271b. 

Payment on presentation of passbook applies only in lifetime of depositor (N. Y.) 1091c 



INDEX 19 

BY-LAWS— Continued 
Construction (continued) 

Payment of balance of deceased's deposit to representative applies to deposits on ac- 
count after death (N. Y.)' 1091c. 
Rule as to payment on presentation of passbook, not applicable to payment on forged 
order by one temporarily in possession of passbook (Mass.) 576b. 

Deposit 

By-laws of savings bank form part of contract of deposit (N. Y.) 1015c, 1067a, 1073a, 

(Pa.) 1210c, 1211d; unless passed subsequent to deposit (Mass.) 576b; or where 

depositor's attention is not called to them (N. Y.) 951b. 
By-law protects payments made on presentation of passbook in absence of notice of 

its loss, where bank uses due care (Mass.) 557c, 559b, 563c, (N. J.) 84.6a, (N. Y.) 

966d, 977c, 996d, 1027a, 1027d, 1066c, 1100b. 

-Evidence 

By-laws admissible to show directors should have known of insolvency (Mo.) 745d. 

Passbook (see Books, Passbooks) 

can not be made negotiable (Cal.) 64a. 

Ratification 

By-law informally adopted, may be ratified by usage (R. I.) 1253a. 

'Reasonableness 

By-law requiring production of passbook, when demanding deposit, is reasonable (N. Y.) 
922c. 

Scope 

By-laws no part of condition of bond (N. J.) 824c. 

Right of stockholder to transfer stock cannot be restrained by by-law making consent 
of directors necessary (111.) 233d. 

Third Parties 

are not bound by by-laws (La.) 429c; without their consent (La.) 446a; or without 
notice (Mo.) 742c. Notice not presumed against third parties (Vt.) 1363b. 

Title 

is not transferred by assignment not in accord with by-laws (Conn.) 113a. 

Validity 

By-law contravening general law not valid (Cal.) 85d, (La.) 446a, (Mo.) 709d. 

By-law requiring cashier to give bond valid (Mo.) 720d. 

Resolutions not invalid for non-conformity with by-laws where no objection by officers 

of bank (N. Y.) 878c. 
By-law prohibiting transfer of stock till debt paid, is valid (R. I.) 1253a. 
-By-law that payment to one producing passbook, discharges, is valid (N. Y.) 941c. 
By-law prohibiting inspection except by consent of board is invalid (La.) 455a. 
By-law giving national bank lien on stockholder's stock for debt, not authorized by 

Acts of Congress 1863 and 1865 (N. Y.) 946c. 
Where stock certificate is transferable, by-law forbidding transfer by holder indebted to 

bank is invalid (N. Y.) 919b. 

"Waiver 

Where by-law created lien on stock and directed that certificate should contain notice 
of this provision, the practice of issuing certificates without that notice repeals 
by-law (Miss.) 687c. 

CAPITAL, 

Definition 

Capital includes debt of State on unpaid stock (N. C.) 1104b, but does not include 

surplus (Wis.) 1422a. 
"Capital furnished" does not include stock subscribed for, but not paid in (Mo.) 700b. 
"Paid up capital" means all assets reserved as capital (la.) 291c. 

Increase of capital 

is not effected by duly authorized mortgage of corporate property (Pa.) 1208d. 

is authorized by General Act of 1838 (N. Y.) 881d. 

does not affect liability on cashier's bond (Mo.) 730d. 

Directors cannot compel consent of stockholders to increase (111.) 233d. 

Ownership of Capital 

is in corporation, not in stockholders (Wis.) 1422a. 

Partial Distribution 

entitles State, holding stock not fully paid, to pro rata share (N. C.) 1104b, 



20 BANKS AND BANKING 



CAPITAL— Continued 
Tnist (see Insolvency) 

for creditors is impressed upon bank capital (Ga.) 142a,_(Ind.) 273d, (N. Y.) 937a. 
for stockholders is impressed upon surplus assets after creditors are paid (Ind.) 273d. 

CASHIER 

Appointment of Cashier 

cannot be objected to by debtors of bank (Me.) 468a. 

Recital of appointment by directors is conclusive in action on cashier's bond containingr 
it (Mo.) 730d. 

Authority of Cashier 

includes authority to conduct bank's business correspondence (N. Y.) 889c. — to issue 
certificate of deposit (111.) 225e. —to execute bank's promissory note, as agent of 
directors (Wis.) 1400d. —/o draw drafts for bank (Mass.) 545a, (N. Y.) 935a, 1055b, 
(Tenn.) 1292c. — to forward bank's check to cover draft made on his order (La.) 
456a. —to discount paper (Vt.) 1351d. —to indorse bank paper (Ga.) 139a, (Ind.) 
257a, (Mass.) 525a, (Minn.) 645d, (N. Y.) 932d, 934c, (Tenn.) 1288a, (Vt.) 1351d, 
(Wis.) 1406b; for purpose of paying bank debt (La.) 398c, (Mich.) 604b ; by implica- 
tion from power to discount (Ga.) 139a; without additional indorsement by president 
(Ind.) 255b; if authorized by directors (Miss.) 667d; even if cashier of private bank, 
(Pa.) 1201a, (Tex.) 1338a, or of national bank (Ark.) 58c. —to certify check (N. Y.) 
961a {contra, if che:k shows on its face a collateral loan where there are no funds (Pa.) 
1208b] ; only on or after date when payable (N. Y.) 946b ; only if there be funds ,(N. Y.) 
946b. —to sell note (Ind.) 278b. —to guarantee paper sold (Ohio) 1148b. Contra 
as to contract to guarantee all paper forwarded to another bank (N. D. ) 1130b. — to 
collect note due bank (Mo.) 734d. —to take transfer of debt in payment of note 
(Mo.) 753c. —to procure rediscount of bank's notes (Mich.) 621d. —to extend time 
of payment of note (N. Y.) 933d. —to forward notes for collection (Mass.) 521b. —to 
contract to deliver note to maker, upon confession of judgment such as will bind all 
his property (Miss.) 672c. — to discharge note and mortgage, though power be given 
also to another (111.) 183b. — to take conveyance of stock as security for debt due 
bank (Conn.) 114b. — to enter into composition agreement where not unusual in the 
business (N. Y.) 999a. — to deposit funds with another bank subject to latter's lien 
for drafts to be accepted (N. Y.) 1009b. —to make loan by credit and entry in pass- 
book (N. D.) 1130d. —to appoint attorneys to collect claims (N. Y.) 1020a. —to 
receive deposits (Mass.) 588a, (N. H.) 819c, (Pa.) 1212c; if general (111.) 210c; 
though special (Ohio) 1156b [contra (Vt.) 1356d, in absence of express power in bank 
to receive them (Mass.) 521c, or if unknown and without express authority (Pa.) 
1186b] ; though specificffor exchange of treasury notes for bonds, where bank advertises 
as engaged in that business (N. Y.) 951c. — to agree to disburse deposit upon a con- 
tingency (Kan.) 332c. — to appropriate funds to payment of owner's indebtedness to 
bank (Conn.) 114a, (N. Y.) 919c. —to contract to collect debtor's chose in action 
and apply proceeds first to payment of debt due bank, and then to claim of third 
party (Mich.) 615c. —to borrow money (Mo.) 726c, (N. Y.) 916d, 1009b; on pledge 
of United States bonds, if entrusted with entire management of bank (Mo.) 716a. 
— to execute mortgage, under directors' resolution (N. Y.) 861c. — to deed land (N. Y.) 
883c. —to accept deed (Mo.) 758a. —to purchase certificate of stock (Mo.) 765c. 
— to bring suit for libel in bank's name (Mich.) 618b; or for collection of note due 
bank, indorsed in bank's name to cashier personally (Mo.) 734d. 

does not include authority absolutely to control assets, though cashier own four-fifths of 
bank stock (Kan.) 316a. —to exceed power specially conferred by directors' resolution 
(Wis.) 1422d. — to issue certificate of deposit to himself without funds (Mo.) 728c. 
— to draw against bank's funds for individual debts (N. J.) 848a. — to bind bank as 
surety, in business in which bank has no interest (N. Y.) 906b; or by executing re- 
plevin bond as accommodation (Neb.) 808a; if bank was not organized to act as 
guarantor, even though accommodation party uses proceeds to pay debt to bank 
(Mo.) 760b. — to transfer judgments (Miss.) 683c. Contra, notwithstanding statute, 
if judgment held in trust for bank (N. Y.) 902a. —to purchase goods (S. D.) 1274b. 
— to release security (R. I.) 1257b. — to release person obligated to bank, without 
payment (Dak.) 125d. — to release surety on notes without payment (Mo.) 712e, 
748b, (Neb.) 771d, or on bond by accepting deed of trust instead (Mo.) 747b. —to 
discharge an insolvent (La.) 401b. — to agree to pay check in consideration of maker's 
service to bank ordered by cashier (La.) 456a. — to transfer bank assets as cash in 
payment of check, whether depositor be director or not (W. Va.) 1395b. — to accept 
verbal assignment of maker's interest in note, in payment of another note (N. C.) 
1125d; or stock in payment of debt due bank (Neb.) 782d; or depreciated bank notes 
in payment of collection paper (Miss.) 680c. — to contract with brokers to sell real 
estate (Mo.) 729b. — to buy real estate for customer at bank (Mo.) 752c. — to agree 
to turn over deceased wife's deposit to husband to be applied to his overdraft to preju- 
dice of bank's creditors (N. Y.) 1015a. —to move branch of Bank of Tennessee (Tenn.) 
1292d. — to vote on appointment of syndic for insolvent debtor (La.) 402a. — to 
agree to refund to paying bank money collected on forged certificate (Md.) 498c. 



INDEX 21 



CASHIER— Continued 
Authority of Cashier (continued) 

is con/erred, as to borrowing of money for bank, by cashier's acting under advice of 

director and bank attorney (Mich.) 628a. 
to pass title to note may be inferred from conduct of business (Mo.) 718a. 
Restrictions on cashier's authority may be abrogated by conduct of other officers. (N. Y.) 
1008a. — tmder charter provision requiring president's signature, do not apply to 
ordinary business acts (Ga.) 141b; including indorsement of bank paper (Ga.) 139a. 

Bank 

is bound by cashier's acts, only in authorized bank transaction (N. J.) 848a. — by cash- 
ier's acts in line of duty (111.) 216a, 225e, (Ind.) 257a, (Me.) 460b, (Mass.) 545a, 
(Mich.) 615c, (Miss.) 672c, (Mo.) 726c, 753c, 758a, (N. Y.) 889c, 933d, 935d, (Ohio) 
1148b, 1156b, (Vt.) 1351d; though bank be private, (Pa.) 1201a, or national (Ark.) 
58c; to bona fide holder, (N. Y.) 934c, 935a, though the act be in fact unauthorized 
(N. Y.) 947c, 1009b, (Wis.) 1406b. — by cashier's acts within apparent scope of 
authority (N. Y.) 1098d, (Tex.) 1340b. — by cashier's contract, if not prohibited by 
charter or statute (N. Y.) 947c; or, in case of agreement to release maker and indorser 
of note, if cashier has long acted generally for the bank (Mich.) 620b. — by cashier's 
tort while engaged in bank business (N. Y.) 947c; including fraud, (Conn.) 119c, in 
giving certificate on other insolvent bankers (Pa.) 1212c, lack of good faith (N. Y.) 
1035c, and negligence in failing to inquire name of owner of deposit about to be made 
(N. Y.) 850b. — dy certificate of deposit signed by cashier alone (Ga.) 141b; individu- 
ally, (Mont.) 767d, even in case of private bankers (Kan.) 314d; if bank has power to 
borrow money and cashier to sign certificates (N. Y.) 918b. — by bill of exchange, in 
ordinary course of business, signed by cashier alone, though charter requires signatures 
both of cashier and of president to bills and notes issued as money (Ind.) 255c. — by 
check signed by cashier under instructions to pay bank debt (N. Y.) 1088d. — by 
cashier's receipt (Ala.) 39b, (111.) 180b. —by cashier's knowledge (N. Y.) 862b {^contra 
if cashier be acting in his own interest, (Mich.) 633b, (Mo.) 746a, (Vt.) 1364b, fraudu- 
lently and without benefit to bank (La.) 455d] ; as to consideration of note held by 
bank (Mass.) 540c, (S. D.) 1276a ; as to fraud (Mo.) 751c ; acting within his authority, 
(N. Y.) 986b, in making loan (Cal.) 84b, in receiving deposits (Mo.) 766a, in discount- 
ing paper (Ore.) 1168d,- (Pa.) 1236b, in purchasing certificate of deposit (Mo.) 765c, 
in receiving securities as collateral, though the knowledge concerned the ownership of 
the securities and was acquired while cashier was agent of debtor (Mass.) 570b; if 
bank takes assignment of insurance policy from cashier (Ga.) 175d. — by notice to 
cashier (Ky.) 358b, 374b, (N.J.) 824a [co«^ra, if attorney represents bank in the mat- 
ter (Pa.) 1188a]; if in line of business (N.Y.) 889c, 986c, (Pa.) 1188a, (Tenn.) 1319c; 
of pledge of bank stock, obtained by cashier's participation in loan secured by the 
pledge (Ala.) 34c; in spite of secret instructions or. cashier's subsequent death (Ala.) 
34c. — by cashier's statements within apparent scope of authority, if his interest 
be not conflicting (Neb.) 772d. —by cashier's statements to surety on which latter 
relies (N. H.) 814a. Contra as to statements concerning teller's reliability made to 
surety on teller's bond (Del.) 129d. —by cashier's statement, on which maker relied to 
his damage, that note was charged to third person at latter's request (Vt.) 1354c. 
— by cashier's tax statement, until correction by Board of Equalization (Kan.) 322b. 
— by cashier's admission concerning balance on account (S. C. ) 1269d. 

is not bound by cashier's act not within scope of authority (Mo.) 748b. — by cashier's 
unauthorized purchase of its own stock (Kan.) 314a. —by cashier's pledge of stock 
in excess of authority and in his own interest (N. Y.) 1098b. —by cashier's fraud, 
merely because he is cashier (Conn.) 125a. —by cashier's representations as to sol- 
vency of another corporation (Mo.) 750c; or as to solvency of maker, made to ac- 
commodation indorser (Pa.) 1206b. 

is liable for cashier's tort, -though involving malicious intent (Mich.) 618b. -^or cashier's 
fraud (N.Y.) 935a, in making loans and extending credit (Ohio) 1157d. ^or cashier's 
failure to apply subscription instalment to payment of bank stock (Wyo.) 1429a. —for 
loss due to cashier's embezzlement (111.) 210c. -^or unauthorized exaction of usury by 
cashier in line of employment (Minn.) 647a; contra (Vt.) 1360a. —for money held by 
cashier officially (Minn.) 659a. —for deposit accepted by cashier on ultra vires agree- 
ment (Mass.) 588a. —for special deposit applied by cashier to bank's debts (Pa.) 
1219b. —for theft of bonds held after agreement by cashier, unperformed, to exchange 
them for registered bonds (N. Y.) 978a. —for conversion by cashier of bonds on 
special deposit, if bank has received benefit of bailment (N. Y.) 1026a. Contra if 
deposit was for customer's own accommodation, to be returned on demand without 
compensation (Ga.) 168c. 

is not liable for cashier's act patently unauthorized (Pa.) 1208b. —for money paid to 
cashier personally (N. H.) 812a. —for draft collected as innocent purchaser, because of 
cashier's fraud in procuring it (la.) 293c. —for cashier's false statements as to sol- 
vency of strangers (Tenn.) 1301d. —o« check because of cashier's expression of opinion 
that it would be paid (Mo.) 741b. 

is not made party by service upon cashier of rule against shareholders to surrender 
shares to be sold for taxes (La.) 453d. 

Liability of banit is not changed by giving cashier's check for its debt (111.) 238a. —is 



22 BANKS AND BANKING 



CASHIER— Continued 
Bank (continued) 

not increased by cashier's receipt for bonds held by bank as security (Me.) 480b. — on 
cashier's certification does not depend on usage or custom (N. Y.) 961a. 

Bond of Cashier 

may be legally accepted by bank, though former director be surety (Me.) 469b. 

of branch bank is enforceable, in absence of statutory provision (N. C.) il24b. 

Breach of condition '\% eifected by cashier's withholding funds of bank (Mass.) 522c. —by 

non-performance of a duty cannot be enforced after long acquiescence by directors in 

cashier's delegation of the duty (Ala.) 22b. 
In suit on bond of de facto cashier, neither he nor his sureties can allege that he was not 

cashier de jure (Mo.) 730d. 

Conflict of Interests 

does not prevent cashier from borrowing from bank with consent of directors (Wis.)' 
1424c. 

Contract 

by cashier to give all his time to bank is not an agreement to pay over earnings in other 
matters (N. D.) 1128d. 

arising from deposit by trustee who is also cashier is between beneficiary and bank, not 
between beneficiary and cashier (Me.) 477a.~ — is solely between bank and depositor 
and is not affected by addition of "cashier" to depositor's name (Va.) 1381b. 

Damage 

does not result from failure of cashier to demand proceeds from brokers, if latter are 
ready and willing to account (N. Y.) 957b. 

Definition 

Cashier is included among "directors and managers" (Wis.) 1428a. 
Cashier is not included among corporators (Miss.) 664b. 

Duty of Cashier 

includes duty to keep the money of the bank (S. C.) 1260d. —duty to know bank's con- 
dition (N. Y.) 906a. — duty not to pay overdraft, without special excuse (S. C.) 
1261c. — duty to use reasonable care and diligence (Tenn.) 1312b, to discover real 
residence of indorser (Mass.) 532a. — duty not to apply money, received for one note, 
on condition of applying or returning it, to another note overdue (Me) 477b. — duty 
not to give director discounted paper of bank in payment of deposits, knowing that 
bank is insolvent (W. Va.) 1394b, 1394c, 1394d. 

is not enlarged by increase of bank capital (Del.) 128c. 

Violation of duty, though direct, by cashier cannot work forfeiture of charter (Miss.) 673c.. 

Election 

to hold cashier, not bank, is eifected by dealing with cashier in'securing draft (N. J.). 
848a. 

Estoppel 

Cashier is estopped to assert that his acts were beyond scope of duties (Mo.) 740b. 

Bank is estopped to set up lien on stock, purchased upon cashier's representation that no- 
lien existed (Mich.) 625c. — to recover on drafts by cashier's representations upon 
which drawers relied in dealing with acceptors (Wis.) 1399a. — to recover on note by 
cashier's knowledge that loan was for gaming transaction and active participation by 
him therein (Ga.) 178a. 

Bank may be estopped by cashier's fraudulent use of power to draw checks (N. Y.) 
1054e. 

Bank is not estopped by parol promise of cashier that check' would be paid (Mo.) 741b. 
— to recover on bank bills fraudulently issued, if cashier be not guilty of fraud or gross 
negligence (Mass.) 539d. — to question assessment, by cashier's statement as to bank's 
taxable assets (la.) 285a. 

Receiver of bank is estopped to deny cashier's authority to sell note, if bank received 
proceeds (Ind.) 278b. 

Directors are estopped to deny cashier's authority, after entrusting him with manage- 
ment of bank (Mich.) 621d. 
Depositor is not estopped to sue for his claim, not presented within two years owing to 
cashier's fraud, if stockholders and other creditors were uninjured by delay (Neb.) 805c> 

Evidence 

Act of cashier is admissible if in line of duty (Cal.) 81b. —is prima facie authorized if in 
course of business (Ala.) 5a; if in collection of bank debts (Mo.) 764c. — in indorsing 
in official capacity, sufficiently proves that he acted for bank (N. Y.) 919a. — in pur- 
chasing stock as agent raises no presumption that bank is principal (Mich.) 631d. 
— in giving unsealed indemnity bond, on sale of attached property, does not conclu- 
sively show that implied direction to sell was given by bank (N. Y.) 892d. —in selling 
bonds on commission may be shown, in suit on his bond, to have been on behalf of 
bank (Mo.) 740b. 



INDEX 2a 

CASHIER— Continued 
Evidence (continued) 

Admission of cashier may be used against surety on bond (Mass.) 548b. 

Authority of cashier may be proved by habitual performance of acts (Ga.) 148b, (Me.) 
466c; by general course of business (Me.) 466c. — to make contract outside of regular 
duties may be shown by prior dealings acquiesced in by bank (Mo.) 756b. — /o trans- 
fer is prima facie shown by cashier's indorsement (Me.) 460d. — to bind bank by in- 
dorsement is not shown by indorsement itself (N. Y.) 925c. 

Bona fides of bank is shown, prima facie, by proof of cashier's ignorance of infirmity of 
paper (Mich.) 627c. 

Declarations of cashier are admissible on question of cashier's fraud, where they consti- 
tute conversation at time of deposit (S. C.) 1271b; or against bank, after cashier's 
death, where they concern bill drawn to his use personally and sued on by bank (Mo.) 
707a. — are not admissible against bank, if they concern prior transaction in which 
cashier acted in individual capacity (Wyo.) 1429d; or if made some time after present- 
ment (Pa.) 1181a; or if made after maturity, to effect that note was paid (Me.) 
469d ; or if made outside of scope of duty, to effect that failure to collect collateral 
was due to bank's fault (S. D.) 1275d. 

Diligence in care of bailor's property is not shown by proof that bailee bank entrusted! 
its own property also to cashier (Ga.) 170d. 

Entries by cashier are prima facie evidence of deposit where depositor kept no passbook 
and produced no record of his deposits (La.) 457d. 

Indorsement by cashier is not necessary to render note admissible if it plainly indicates 
that it was made collaterally to him as officer of bank (Mich.) 608b. 

Inference of cashier from books of predecessor is not admissible (Me.) iTSa.. 

Judgment against bank for negligence is inadmissible in suit by bank against cashier,, 
except to show damage (N. Y.) 877c. 

Knowledge of cashier ^ in private capacity, as to failure of consideration of note discounted 
by bank, is inadmissible in suit on note (Mo.) 756c. 

Notice to cashier may be proved not binding on bank, by evidence that cashier was not 
acting for bank or drawing salary (Wyo.) 1429d. 

Opinion of cashier as to negligence is inadmissible, if he be not authorized to confess 
liability (la.) 304c; as to meaning of technical term is not evidence of directors' under- 
standing of it (N. Y.) 926c; that failure to collect collateral was due to bank's fault is 
inadmissible (S. D.) 1275d. — of witness as to cashier's authority is inadmissible 
(Ga.) 148b. 

Parol testimony xnay he iatrodviced to show capacity in which cashier signed note (Kan.) 
337a ; or meaning of descriptive word " cashier" in bond (Kan.) 336d. — i.s inadmissible 
in suit by bank on note, to show agreement by cashier that note should not be en- 
forced or that there should be other makers (Neb.) 770d. 

Payment by cashier of guaranteed check, where there are no funds, does not conclusively 
show overdraft, but may represent loan of his private funds (La.) 381b. 

Ratification of cashier's alteration of note may be shown by proof that bank treated it 
as note for altered amount (S. D.) 1274c. 

Receipts in writing cannot be changed by cashier's declarations (Pa.) 1213c. — o/" cashier 
may be shown to be official acts (N. H.) 819c. 

Witness. Cashier is competent witness as to terms of deposit contract (Idaho) 180a; as- 
to loss of note (N. H.) 810c; to make preliminary proof as to bank's accounts (Cal.) 
100a; to produce bank books and vouch for their accuracy (Tenn.) 1320b; to prove 
that i)ank advanced money on check (Mass.) 524d; to give oral evidence of time not 
stated in note (La.) 413b; to prove receipt of notice of protest by other party (Ala.) 
18a; after receipt of discharge from bank and after transfer of his stock (Vt.) 1349b. 

Liability of Cashier 

includes liability on ultra vires contract on which he attempted to bind bank (Mich.) 
615e. — on agreement to make good a deficiency, though caused by theft of another,, 
of which cashier was informed and informed directors (Mich.) 627d. —prima facie on 
bond signed "cashier" (Kan.) 336d. —for acts in excess of authority (La.) 456a. 
—^/or refusing to deliver, on demand, special deposit accepted by him (Ind.) 247b. —for 
fraud, jointly with directors (Wis.) 1428a; and, in case of cashier of national bank, 
even after discharge in bankruptcy (Neb.) 805d. —for want of reasonable care and 
diligence (N. Y.) 957b; in making entries (N. Y.) 877c; in making loans, though di- 
rectors be negligent also (Cal.) 70a; jointly with directors (Wis.) 1428a. —for mis- 
application of funds, in advancing money to pay for stock, deposited as security for 
the loan (Ga.) 164c; or in using proceeds of collection (Neb.) 781c; or in paying out, 
writhout authority, money received on condition (Me.) 477b; although the other party 
knew that money was received in official capacity (Me.) 477b; although president con- 
sented to ultra vires transaction (N. Y.) 884d; enforceable by accounting in equity at 
instance of bank (N. C.) 1120e. —for defalcation, to bank, though directors were 
negligent (Mass.) 530c; or to stockholders, in case of illegal banking company (Va.) 
1369b. ■ . ' 

does not include liability for acts done under president's direction, if cashier be not guilty 
of neglect (N. Y.) 957b. —on bank note, though it bears his signature (Ohio) 1131b. 
—on cashier's bond, after he has ceased to be cashier (N. Y.) 917c. —as insurer of 



BANKS AND BANKING 



CASHIER— Continued 
liability of Cashier (continued) 

faithfulness of subordinates (Ky.) 363b. —^for interest on money in his hands, unless 
he fails to pay over on leaving office (S. C.) 1260d. —under criminal law for putting 
notes into circulation, in absence of proof that they were issued to be circulated as 
money (Mo.) 695b; for receiving money in payment of bank debt after bank's insol- 
vency (Neb.) 790a; for wrongful overdraft, unless it be shown that cashier received 
proceeds (N. Y.) 1019e; for perjury, because of testimony that worthless securities were 
valuable, in absence of proof of willful failure to give honest opinion (Cal.) 84d; of 
state, in case of cashier of national bank receiving deposits (Kan.) 328c. 
for misapplication of funds survives against cashier's estate (Vt.) 1364c. 
Agreement to release cashier from personal liability to promisor, in exchange for loan of 
bank money, is void (Mont.) 770a. 

negligence of Cashier 

Payment of responsible customer's overcheck is not negligence per se (Tenn.) 1311c. 

notary 

who is also cashier acts ministerially in performance of notarial acts (Cal.) 91b. — m.ay 
protest biU (Ky.) 369c; or note, even though maker (N. Y.) 1062c. 

notice 

of limitation of cashier's power prevents recovery on unauthorized contract (Mich.) 601b. 

of falsity of statements as to bank's condition is not chargeable to one deceived thereby, 
because he subsequently became cashier (S. D.) 1276b. 

Bank is not charged with notice of cashier's fraud (la.) 293c. — of fraud because of 
cashier's intimacy with person guilty of fraud (Conn.) 124b. — ^(t/" cashier's embezzle- 
ment, so as to deprive it of character of bona fide holder (Mass.) 589d. 

Persons dealing with bank are charged with notice of extent of cashier's authority (Mich.) 
601b, (N. Y.) 1034d. — that cashier has no authority to certify check without funds 
(N. Y.) 946b. 

Retired partner of banking firm is bound by cashier's acts in dealing with one having no 
notice of dissolution (S. D.) 1282a. 

OfBce 

of cashier is continuous (Mass.) 530c. 

Person, holding offices of treasurer in one bank, and of cashier in another bank, with 

which the first bank made all its deposits, may be treated by depositor with first bank 

as holding either office (N. Y.) 1007c. 

Ownership of Property Held by Cashier 

Bank is owner of money received for debt due it and deposited in cashier's name (N. Y.) 
919c. — check payable to cashier (N. Y.) 952b. —draft payable to cashier (N. Y.) 
887a. —note payable to cashier (Ala.) 12a, 21b, 21d, (Ind.) 265a, 267a, (N. Y.) 
883a, (Utah) 1342a; if executed for bank's benefit (Neb.) 770d; or if made by mistake 
to cashier for money loaned by bank (Tenn.) 1317d. —profit on bonds negotiated by 
cashier in line of duty (Mo.) 759b. — mortgage payable to cashier (Ind.) 266a; or 
assigned to cashier, successors and assigns (Mich.) 616d. 

Cashier is owner of bill drawn to his use personally (Mo.) 707a. — legal title to paper 
indorsed to "A, cashier," (Va.) 1368c; or bond payable to "A, cashier," (N. C.) 1104c. 
— interest in land assigned to "A, cashier," (N. D.) 1130a. — stock transferred to him 
to secure bank debt, and held as trustee for assignor (Mass.) 520d. — all rights ac- 
quired as "A, cashier," except in case of commercial paper (N. D.) 1130a. 

"Questions of Law and Fact 

Cashier's credibility is for jury (N. Y.) 1035c. 

Eaitification 

is effected by accepting benefits of cashier's unauthorized act (Mich.) 605b, (Mo.) 760d, 
(N. Y.) 935d, 986b, (Utah) 1344a; with knowledge of facts (N.D.) 1128a. —failure 
to object after knowledge (Mo.) 764c, (N. Y.) 889c, (Pa.) 1201b. -prosecution of 
claim based on unauthorized transaction (Me.) 464d. — recognition of unauthorized 
assignment (Wis.) 1399a. — authorized act of cashier affirming prior unauthorized act 
(La.) 456a. 

of cashier's acceptance of stock in payment of debt to national bank is impossible (Neb.) 
782d. 

operates as ratification of entire transaction (Ga.) 178a, (Ky.) 374a, (Mich.) 605b, 
(Ore.) 1167d, (S. D.) 1274c. — « impUed authority for subsequent similar acts (Ky.) 
374a. — in case of bank's ratification of cashier's false certificate of deposit of insurance 
company, acted upon by superintendent of insurance, to estop bank to deny the credit 
as against superintendent (Mo.) 738c. 

Helation Between Cashier and Bajik 

Cashier is agent of bank (Me.) 459a. Contra, if acting for third person (Minn.) 659c. 
— in business correspondence (N. Y.) 889c. — z'« making contracts as " cashier" (Mass.) 
527b. —in indorsements (Mass.) 525a; even in case of national bank (Ark.) 58c. — in 
signing certificate (111.) 225e. — in accepting deed (Mo.) 758a. 



INDEX 25- 



CASHIER— Continued 

Relation Between Cashier and Bank (continued) 

Cashier is trustee for bank of bank funds in his possession (Neb.) 793c. Contra, of landi 

purchased with money borrowed from bank with directors' consent (wis.) 1424c. 
Cashier is ordinary creditor as to arrears of salary (N. Y.) 859c. 

Salary of Cashier 

charged in accounts, though not voted, is acquiesced in by directors (Cal.) 70a. 

Statute of Limitations 

is not arrested by cashier's statement that no money is due (la.) 310b. 
does not begin to run, against action for cashier's fraud, until disclosure (Tenn.) 1312b.. 
— on notes, made by cashier and under his charge, until bank knows of non-payment 
(Pa.) 1178c. 

Title 

passes to bank paper by cashier's indorsement (Miss.) 666c; prima facie (La.) 418d; if 

authorized (Me.) 468a. 
does not pass to bonds held by cashier as trustee, by mere recital in note to bank that 
they are pledged to bank (N. J.) 839d. —to fiind, by cashier's check (111.) 244a. —to- 
note by cashier's unauthorized assignment (Ore.) 1168c. 
Unauthorized transfer of note by cashier can be questioned by assignee alone (Minn.) 
645d. 

CERTIFICATli OF DEPOSIT 
Assignability 

A certificate of deposit is assignable though non-negotiable (Mo.) 719b; or held by 
another as security (Kan.) 334d. 

Condition 

"to be properly endorsed" is not a condition precedent (Kan.) 331b. 

"Subject to any claim or fee" is of no importance in interpleader between depositor 

and bank (Mo.) 719b. 
Lien for other debts, reserved in certificate, is good against assignee (Cal.) 72b. 

Consideration 

may be the 'surrender of one certificate for another (Ohio) 1157d; unless worthless- 
(Neb.) 779b. 

Definition 

A certificate of deposit \b va. ^'Se.ct a. -^raraxs^ory noVe. (Conn.) 113c, (111.) 222c, (Mont.) 
767b, (S. C.) 1269b, (Wis.) 1412a; provided it be payable on demand (Cal.) 63d; 
or three months afterdate (111.) 191a; and to order (Cal.) 63e ; or to one or bearer 
(Fla.) 136a; though with interest (Mich.) 606b, (N. Y.) 904c; contra (Cal.) 96c, 
(Mass.) 571c. —is included by the term "money" (Neb.) 790d; contra (la.) 283b. 
—is a receipt (Neb.) 788c, (Wis.) 1414b; contra (S. C.) 1269c. —is not a bilt 
(Ga.) 139c. —is a debt of the bank if immediately redeemable (Ga.) 152a. —must 
be issued on a. deposit of money (Tex.) 1330b. — is not covered by an agreement as- 
to commercial paper (N. Y.) 967c. 

Damages 

Measure of damages for conversion is the face value of the certificate (Dak.) 125e. 
If non-negotiable without statutory words, no damages are recoverable (Mo.) 700a. 

Demand and Presentation 

Demand is necessary to entitle the holder to recover (III.) 237a, (Me.) 491c, (Mass.) 
571c, (N. Y.) 969b, 976d, 1018a, (Pa.) 1218a, (S. D.) 1283d, (Vt.) 1354d; contra 
(Cal.) 63d, (111.) 191a, (la.) 310b, (Mich.) 621b, (Minn.) 639c. —must be accom- 
panied by presentment of the certificate (Ga.) 176a, (Neb.) 807b, properly indorsed 
(N. Y.) 1101b, (Vt.) 1362b; contra (111.) 191a. —by assignor inures to assignee's 
benefit (Ga.) 146c. — before the certificate is due is ineffective (111.) 207c. — is not 
made unnecessary by insolvency and receivership (Ore.) 1169a. 

Presentation must be made to the person whose duty it is to pay (Ore.) 1169a, within 
a reasonable time (Ind.) 261a, 267b, (Mich.) 609b, (Wis.) 1403c, which may be two 
days (Ohio) 1148c, or six days (Wis.) 1403c, or three months (Mich.) 606b, or the 
interest bearing period (Neb.) 786d, but not fifteen days (Md.) 503b. 

Estoppel 

One proposing certificate as voucher cannot claim other character for it (N. Y.) 957c. 

Evidence 

A certificate cannot be contradicted (111.) 197d; but may be explained by parol (111.) 

198b, (la.) 286d, (N. Y.) 957c; contra (S. C.) 1269c; and contra as to interest 

(N.Y.) 1027c, 1039d, and indorsement (Neb.) 799d. 
A certificate is prima facie evidence of the bank's liability (111.) 197d, (Kan.) 333b, 

(Neb.) 782a, (N. Y.) 1019d. 
Certificates are admissible under common counts (111.) 184b. 
In action of conversion, maker's insolvency may be shown (Dak.) 125e. 



^6 BANKS AND BANKING 



CERTIFICATE OF DEPOSIT— Continued 
Holder 

if unlawfully possessing certificates, holds for true owner (Cal.) 71c. 

is regarded as a depositor (Cal.) 96c; contra (Mich.) 628b. 

cannot claim that he thought certificate of president's firm was bank's (Pa.) 1215c. 

is presumed to be owner for value (Cal.) 63e, (Fla.) 136a, (Mo.) 719b, (N. M.) 849a; 
though taking for pre-existing debt (la.) 283d. 

is unaffected by prior equities unknown to him (Mass.) 571c, (N. Y.) 918b, 969b, (Ohio) 
1157d; or against strangers to the certificate (N. Y.) 937d; or by the use of the pro- 
ceeds (Wyo.) 1431b; but where the pleadings raise fraud, he must prove good faith 
and consideration (S. D.) 1281b. —by bank' s failure, a.& against indorser (Mich.) 606b. 

is not bona fide if taking after maturity (Cal.) 63c, (Neb.) 779b. —if certificate was 
issued by cashier to himself (Mo.) 728c. — i/" certificate is issued in known violation 
of charter (Cal.) 107a. — if collecting forged certificate for depositor with equal de- 
posit (Md.) 498c. 

by alleging possession sufficiently alleges that he is holder and owner (Mo.) 725a. 

not charged with notice of cashier's lack of authority by fact that certificate is of un- 
usual color (Kan.) 314d. — iy knowledge that payee was stockholder (Cal.) 96c. 

Question of bona fide possession for value is one for jury (111.) 233c. 

"Illegality 

Certificate issued by bank, payable at a future time is void (111.) 184a; contra: as to 
national bank (Mass.) 577d. 

Indorsement 

cannot be explained by parol (Ga.) 158a. 

warrants validity (Conn.) 113c. 

Certificate need not be indorsed before suit thereon by payee (S. D.) 1282a. 

General denial questions indorsement (Kan.) 325b. 

is essential to negotiability (Ind.) 260d; and transfers title (Cal.) 78a, (Mo.) 719b; 
unless conditional (Cal.) 97a; or made by agent without . authority (Cal.) 63e, 71c; or 
the certificate be lost before reaching the indorsee (N. Y.) 874a. 

Indorser is considered a. joint promisor with other signers (Ark.) 57a. — is liable on a 
certificate signed by the cashier alone (Ga.) 141b. — is not liable unless presentation 
is made on last day of grace (Minn.) 653a. — may be subrogated, on paying a dis- 
honored certificate, to the rights of holder (Mich.) 615d. 

"Interest 

runs from demand or suit (Mich.) 621b, (Neb.) 781a; even after refusal for not producing 
the certificate (Mass.) 584b. 

"Payable 60 days after date with interest" means interest from date (Mo.) 699e. 

That a certificate is to bear interest does not affect the indebtedness (N. Y.) 898a. 

Certificate draws interest to time of payment (N. M.) 849a. —at same rate, after ma- 
turity (Mo.) 714c. 

Interpleader and Intervention 

Maker may compel an interpleader (Minn.) 637c. 

Payee may intervene in a suit by indorsee against bank (S. D.) 1281b. 

;Loss 

entitles bank to require indemnity (Cal.) 62d; unless the certificate was non-negotiable 
or past due (Neb.) 786d, 786e; but negotiation of certificate is not presumed from 
mere lapse of time (N. Y.) 868b. 

Maturity 

is controlled by law of place (Conn.) 113c. 

Certificates payable on call due at once (Ga.) 158a; or if no time named (Me.) 491c. 
Certificate to bear interest for a period does not mature before its expiration (Neb.) 
786d; if payable "in 20 months or six if desired," holder has option (Cal.) 88a. 

Negotiability 

must appear on its face (Tex.) 1330b. 

A certificate of deposit is negotiable {CaX.) &2A, ^^oc, (Me.) 491c, (Ohio) 1158b, (Tex.) 
1330b. — j/payable to order (111.) 237a, and on demand (Md.) 502d; or "on return" 
(Neb.) 786d; or with interest (Neb.) 786d, (N. Y.) 875b; but it must be indorsed 
(Ind.) 260d. —J/" payable in money or currency (Wis.) 1408d ; or in current banknotes 
(N. Y.) 971a; or in current funds (Neb.) 786d; [contra (Wis.) 1403cl, though not 
legal tender (Ohio) 1148c. 

Certificate of deposit of checks is not negotiable (Tex.) 1330b. 

iPayment 

cannot be made in depreciated bills, if payable in currency (111.) 186c, 188b, (N. Y.) 925c. 

— current notes if statute prohibits bills not payable in gold or silver (Ga.) 149a. 
Bank is liable for holding without payment or return to collecting bank (La.) 454c. 

—payment on forged indorsement (N. Y.) 874a; or unauthorized indorsement by agent 

(Cal.) 71c. 
Place is situs of bank when certificate was issued (la.) 288b. 
Part payment and tender of balance is good defense (Mich.) 609b. 



INDEX 27 



^ CERTIFICATE OP DEPOSIT— Continued 

Presentation— see Demand and Presentation 

Renewals 

gg if void leave original certificates in force (N. Y.) 900d; otherwise, they constitute a new 
contract (Minn.) 662d. 

Setoff 

Certificates of deposit are subject to setoff (Ala.) 32c; unless in the hands of a bona fide 
holder (Mass.) 571c. —may be set off by bank's debtor, if acquired before bank's 
insolvency (Mich.) 618c, (Tenn.) 1294b, 1298a, 1302b, (Va.) 1376a; or after failure 
but before assignment (Wis.) 141 9d. 

Statute of Limitations 

does not begin to run until demand and refusal (Minn.) 639c, (N. M.) 849a. 
Action is not barred until 10 years after maturity (111.) 208a; until six years after de- 
mand (N. Y.) 934b; but is barred by 13 years (Wis.) 1412a. 
Death of depositor does not stop the statute (la.) 310b. 

Successive Banks 

Assumption of debts by new bank does not affect liability on certificates (N. Y.) 934b. 

'Tender of certificate 

is good, if not refused on that ground (111.) 184b. 

must be made at trial, if certificate held by third person (Md.) 502d. 

'Title 

passes by delivery (111.) 233c, (Minn.) 637c, (N.Y.) 1083a; unless for collection (Neb.) 799d. 
Surrender and cancellation discharges bank (Pa.) 1182c. 
Holder's executor has title and may demand payment (Kan.) 331b. 

Yalidity 

, Certificate issued without authority may bind stockholders (Ohio) 1138d; but not pro- 
moters (Utah) 1343a. 
Non-banking corporation cannot issue certificates for loans (N. Y.) 895a. 
Certificates not contracts requiring signature of president and cashier (N. Y.) 918b. 
Burden is on receiver to show unauthorized issue (Neb.) 782a. 

"Words and Figures 

in the body and margin, if the same, control, though another sum be noted over maker's 
name (Mo.) 699b. 

CHARTER 

Acceptance 

prevents bank from releasing itself from obligations assumed thereunder (Pa.) 1186c. 
gives state a right of action for bonus provided for therein (Pa.) 1186c. 
does not make the vesting of title in a receiver, under its provisions, a voluntary con- 
veyance (N.Y.) 928b. 
may be proved by charter and user (Vt.) 1348a. 

Amendment 

is not effected by supplemental act, not constitutional (Miss.) 665e. 

presumed hora stockholders' acts, though form of acceptance be prescribed (Ohio) 1148d. 

m.ust be accepted by all corporators, if the change be fundamental, giving general bank- 
ing powers to a company formed to loan on pledge of chattels (La.) 434c. 

binds stockholders accepting it (Ohio) 1148d. 

does not affect rights of existing stockholders, by forbidding colored persons to become 
stockholders (La.) 382c. 

Legislative power to amend does not depend on manner of exercise (N. Y.) 916a. — must 
be exercised as to branch banks, through charter of parent bank (Va.) 1374a. 

Annulment 

is not effected, as to charter giving banking powers, by some part declaring that the 

corporation is not a bank (111.) 215b. 
cannot be effected by State without proof of public injury, where requirement of Act of 

1839, that banks pay weekly balances in specie, has been waived (La.) 391d. 
does not prevent recovery in chancery by bank trustees on note made to bank (Ark.) 49a. 

Collateral proceedings 

cannot raise the question of charter powers (La.) 384b. — of violation of charter (La.) 
407c. —o/" forfeiture of charter (Ky.) 352b. 

Constitutionality 

Provision authorizing joinder of drawers, indorsers, and acceptors, as defendants, is con- 
stitutional, though the power be not recited in title of incorporating act (Ga.) 152c. 

Provision for rate of interest, higher than that allowed by the general law, does not 
render charter unconstitutional as a partial law (Tenn.) 1288d. 



28 BANKS AND BANKING 



CHARTER— Continued 
Constitutionality (continued) 

Tax provision in charter, making , capital stock taxable for state and county, but not 
for municipal purposes, but making corporate property, situate in any city, taxable 
for municipal purposes, is constitutional (Ind.) 251e. 

Territorial legislature may grant a bank charter (111.) 181e. 

Construction 

Charter provision cannot prevail over general law regulating interest (N. C.) 1109c,, 
(Va.) 1368d; or distribution of insolvent estate (Vt.) 1365d; or defenses to promissory 
notes (Ky.) 359a. — overrules general law when former creates special privilege (La.) 
'i02c. — must be strictly construed when in derogation of general rule (La.) 404a. 

Construction of charter is not affected by corporation's insolvency (Ark.) 48d. 

General statute applies, charter fixing no penalty for usury (Tenn.) 1298b. —requiring 
directors' authorization does not apply, charter providing for no directors (N. Y.) 882d. 

Continuance 

Bank not electing to continue under Code, is subject to its charter (Cal.) 82b. 

Directors 

Election of stockholder director, may, under charter provision that vacancy be filled " by 
directors," be participated in both by directors appointed by city and by those elected 
by stockholders (La.) 381c. — of any director, appointed or elected, may be made, for 
the ensuing year by stockholders, under charter provision that only two-thirds of the 
directors may be continued in office ; but if more than two-thirds thus continue, a 
new election is necessary to fill the places of those who are ineligible (La.) 389a. 

Power in directors to fix salaries does not authorize contract for bonus (111.) 233d. 

Prohibition against partnership between directors and director of another bank, forbids 
partnership with director of a. foreign bank (Ohio) 1133c. — against director's being 
bound as security is directory, not mandatory (Ky.) 349a. 

Evidence 

Admission that action is brought under charter is made by making affidavit of defense 
required by charter (Ga.) 151a. 

Charter and user are evidence of incorporation (Ala.) 2d, (Mass.) 532b, (Mo.) 704d, 
(Vt.) 1348a. — though defective, is admissible to show existence of corporation de 
facto (Cal.) 80c. — of foreign corporation, plaintiff, must be proved by exemplifica- 
tion, if required (N. Y.) 866c. 
fudicial notice is taken of charter as a public act (Ga.) 152c, (Ky.) 350a, (Mich.) 
604c, (Ohio) 1137b. —is taken of charter of Northwestern Bank (Va.) 1372a. —is 
taken of charter of Union Bank (Tenn.) 1286c. —is not taken by New York courts 
of Congressional acts creating corporations (N. Y.) 866c. — is not taken of rate of 
interest allowed by state charter of bank not pleaded or proved (Pa.) 1209b. 

Exemption 

cannot release from legal tender provisions of state constitution (Ind.) 256c. —front 

police power (Mo.) 714b. 
from taxatio7i except as provided by charter, invalidates any other tax (N. C.) 1105c,. 

1106b. — does not relieve from license tax (La.) 441d. — by State, does not relieve 

from municipal taxation (Mo.) 701a. — is not effected by provision for a tax in lieu 

of all other taxes (Tenn.) 1319b. 
is not implied -where charter extension omits exemption in original charter (Del.) 129a. 

Expiration 

too& place in 1857, under Act of 1855 requiring free banks to settle affairs by 1857 
(Ind.) 257f —at close of December 31, where corporation had life "until January 1"' 
(N. Y.) 914a. — when injunction against insolvent bank was made perpetual (Me.) 
480d. 

extinguishes power to sue corporation (Ga.) 162a. —power to continue pending suits 
against corporation (Ky.) 351c. —judgments against corporation (Del.) 128a. 
—directors' charter liability to billholders (Ga.) 149c. —stockholders' liability, except 
that to billholders under R. S., ch. 36, sec. 31 (Mass.) 533b. —billholders' right to 
assign clainl against stockholders (Mass.) 520a. 

does not extinguish debts (Ga.) 152a. —power of bank to liquidate (La.) 420a. —ex- 
istence of corporation having charter power to determine affairs after expiration 
(Tenn.) 1287b. —power of national bank to settle affairs (Minn.) 659d. 

creates stockholders' liability to billholders under Act of 1857 (Me.) 480d. 

of bank where bond is payable does not affect payee's recovery (N. Y.) 1104c. 

Continuance after expiration is effected by charter provision (Tenn.) 1287b; or by 
statute (Mass.) 520c. ^o;- purposes of Jsuit, though by act subsequent to charter, is 
constitutional (Mass.) 520c. —extends for period fixed by statute in addition to that 
granted by charter (Ala.) 3c. —extends, as to banks required by Act of 1855 to settle 
affairs by 1857, for three years from 1857 (Ind.) 257f. —permits transfer of note by 
bank having power to settle affairs (Mass.) 525a; assignment of note for debt, though 
statute forbids issuance of securities after expiration (Mass.) 519c; suit by old direc- 
tors, where charter provides that they shall serve until new directors qualify (Tenn.) 



INDEX 29 



CHARTER— Continued 
Expiration (continued) 

1287b; suit in corporate name by trustees to collect assets (Ark.) 52c. — does not ren- 
der surety on cashier's bond liable for defalcation after expiration (Ohio) 1132a. 
Statute of Limitations against action to enforce stockholders' liability begins to run 
from date of notice of expiration in state paper (Me.) 481c. 

Extension 

^^of existing charter is constitutional (111.) ISld, 181e. 
operates tQ continue original charter (Ala.) 27a, (111.) 181e. —to waive forfeiture (S. C.) 

1260b. — to enable bank, doing business thereunder, to transfer note (Neb.) 796e. 
does not operate to renew exemptions in original charter omitted in extension (Del.) 129a. 
is evidence of original grant (La.) 394b. 
Acceptance of extension is presumed from bringing suit (Me.) 458a. — may be effected by 

conduct (La.) 420a. — o/"bank charter may be proved by executive minutes of State 

(La.) 394b. — though charter be radically modified, gives stockholder no right to 

withdraw his stock (Tenn.) 1292a. 

Eorfeiture (see Dissolution) 

is effected by voluntary assignment (Ark.) 44d. — by suspension of specie payments 
(La.) 385c, (S. C.) 1260b; contra (Ark.) 44d, (N. Y.) 855c. —by failure to file re- 
port with auditor (111.) 182f. —by governor's proclamation (Miss.) 665e. 

is not effected by non-user of corporate powers (N. Y.) 855c; unless total (N. Y.) 
855b. —by assumption of authority to establish branch, later abandoned (Mich.) 
600b. — by purchase of bank's own paper at a discount (N. Y.) 855c. — by cashier's 
direct violation of duty (Miss.) 673c. 

may be declared for suspension of specie payments (Mich.) 598a, (Miss.) 674c, 675a, 
(S. C.) 1260a. Contra if state has recognized bank after suspension (Ark.) 44d. 
—for cashier's failure to give list of stockholders (Vt.) 1355d. —for non-payment of 
tax (Pa.) 1176c. ^or willful acts or omissions (Pa.) 1189b. 

may not be declared for mere resolution to suspend specie payments (La.) 391d. —for 
mere omission to organize under charter (N. C.) 1111c. -for failure by bank to pay 
interest on bonds (Ark.) 44d. — where corporation acts in good faith (Vt.) 1347c. 
— by legislature, for failure to pay liability in specie, if charter contains no repealing 
clause (Mich.) 600a. 

may be enforced by State alone (La.) 384b, (Tenn.) 1309b, (Vt.) 1359d. —by quo 
warranto (Ark.) 44d, (111.) ISld. —in equity, by statute, in the case of bank suspend- 

. ing specie payments (Mich.) 598a. — within reasonable time after notice that bank 
intends to resume (Mich.) 604d. 

imay not be agreed to by president and directors without stockholders' consent (La.) 
395a. 

for cashier's failure to give list of stockholders is not barred by limitation under Gen. 
St., ch. 62, sec. 5 (Vt.) 1355d. 
• does not terminate pending suits (Ala.) 14c, (Ga.) 145a. —bank's capacity to sue 
(La.) 385c. -de facto existence of bank (S. C.) 1260b. 

■by governor's proclamation does not dissolve corporation, having charter power to ter- 
minate affairs after proclamation (Miss.) 665e. —terminates banking privilege (id.). 

under Act of March z, l8s5, dissolved bank on that date (Ind.) 259a. 

After forfeiture receiver is sole representative (Ga.) 142b. —trustees alone can sue 
(Ala.) 24d. —trustees may revive suit (Miss.) 676a. —trustees may accept bill in 
payment of a doubtful debt (Ala.) 25a. —bank having power to settle affairs cannot 
make new discount (Ala.) 23b. 

Pleading and proof. Averment of assignment for liquidation within five years is not 
sufficient averment of non-user under Act of February 26, 1845 (Ohio) 1144a. For- 
feiture of charter is no defense to maker of note as against bank (Ky.) 345b. Direct 
proceeding by the State to forfeit a charter admits existence of corporation (Miss.) 
685b. Forfeiture is never presumed (Mich.) 598a. Court must take judicial notice of 
forfeiture (Ga.) 144e. 

Staie enforcing forfeiture iot non-payment of tax is not precluded from enforcmg tax 
(Pa.) 1176c. — in direct proceeding against bank admits existence as bank (Miss.) 
685b. 

Waiver. Forfeiture may be waived by subsequent legislative extension (S. C.) 1260b; or 
restoration (Mo.) 701c. Act of 1814 does not perpetuate charter so as to prevent 
forfeiture by quo warranto (Ind.) 246a. 

Grant 

A 'Charter is a contract inviolable under the United States Constitution (Ala.) la, 2c, 
(Ark.) 50c, (Ga.) 153b, (111.) 181c, (Ky.) 350c, (La.) 406c, (Mich.) 600a, (Miss.) 
671b, (Ohio) 1134d, 1144b, (Tenn.) 1285a, 1288d. 

Charter contract is not broken by levy of excise tax under subsequent statute (Mass.) 518c. 

Charter may be altered by subsequent general statute, if state has reserved power to 
alter (Mies.) 6S3a,, (Pa.) 1190d, 1191c. —?/ granted after constitution of 1868 (La.) 
4^,6c 



30 BANKS AND BANKING 



CHARTER— Continued 
Inconsistent provisions 

General power does not nuUiiy special prohibition (Miss.) 685c, (Mo.) 694c, 694d. 

Power to deal in "goods, chattels and effects" though limited by section omitting "ef- 
fects," includes power to deal in notes (Mo.) 694b. 

Charter giving banking powers is not annulled by some part declaring corporation not 
to be a bank (111.) 215b. 

Interest 

Legal rate under general statutes cannot be altered by charter (N. C.) 1109c, (Va.) 
1368d. —on discounts is that fixed by charter (La.) 378d. —higher than that of for- 
eign corporation's home state, is not rendered illegal, as to that corporation, by char- 
ter limitation to "legal rate" (N. Y.) 955a. 

Interest in excess of charter limit renders excess invalid (Mo.) 710d. — makes contract 
void under usury law of 1859 (Wis.) 1402c. 

Rule of interest is not created by charter provision giving power to discount, at 7 per 
cent, notes having less than 12 months to run (Miss.) 682b. 

Special provisions. Under charter giving interest to billholders on suspension, interest 
runs only from demand (La.) 401c, 414b. Under charter allowing 7 per cent on loans- 
and 10 per cent after maturity on mortgages for stock and loans, 10 per cent rate ap- 
plies to all loans secured by mortgage (La.) 422d. 

Lien on stock 

is created by charter prohibition against transfer while stockholder is indebted to cor- 
poration (Md.) 494c. 

for stockholder's debt cannot be questioned (Md.) 499b, 502b. — applies to unmatured' 
note indorsed by him (Pa.) 1175b. 

Miscellaneous provisions 

Available fund. Charter requiring an available fund is satisfied by keeping the fund 
lent to honest and solvent borrowers (N. Y.) 904c. 

foint contracts. Charter, giving same privileges as those conferred upon Bank of 
Louisiana, gives same remedy on joint contract of husband and wife (La.) 407b. 
Joint promissory note is not within charter allowing husband and wife to bind them- 
selves jointly in hypothecation obligations (La.) 404a, 418c. 

Negotiable paper. Charter provision giving same remedy against drawer and indorser- 
of discounted note, as in the case of a foreign bill, does not limit the remedy, but 
fixes the liability (Mo.) 696b. 

Property. Under charter provision that title shall pass to receiver on insolvency, title- 
passes by operation of law (N. Y.) 928b. Charter provision, allowing sale by agree- 
ment without foreclosure, repeals pro tanto Act of 1820, and validates sale (Ky.) 355b. 

Recapitalization. Under charter provision for payment of dividends due city to sinking 
fund, city cannot compel recapitalization every six months so as to compound in- 
terest (La.) 395c. 

Specie payments. Charter may provide for damages to billholders on suspension of 
specie payments in addition to interest from demand (Ark.) 50e. Charter requirement 
of redemption of bills in specie authorizes payment in legal tender (Ind.) 256c. 

State stock. Where charter empowers state to pay for stock at convenience, payment 
may be deferred until expiration of charter (N. C.) 1104b. Where state receives stock 
by charter "as a bonus" the stock is non-assessable until all assets of the bank are 
exhausted (La.) 415b. State, owning unpaid stock payable under charter at conven- 
ience, is entitled to pro rata distribution on partial division of capital (N. C. ) 1104b. 
Stock owned by state, and payable under charter at convenience, is part of capital, 
though unpaid (N. C.) 1104b. 

Supersedeas. Bank charter denying supersedeas writ applies only to judgments ren- 
dered under charter and upon capias writs issued and served (Vt.) 1366e. 

Taxation. Under charter provision for tax on all except state stock, payments are 
properly made out of the common fund (N. C.) 1104a. 

Notice 

One who seeks to rescind purchase of bank for error in certified copy of charter is not de- 
feated as chargeable with knowledge of the charter as a public act (Tenn.) 1289d. 

Pleading 

Plea of charter which gives no right to issue paper money is not good to charge of 
illegal banking (Mich.) 604c. 

Replication alleging that bank "has put into circulation a large amount of notes to 
circulate as money" is bad in a quo warranto proceeding, for failing to say "to 
more than double the amount of paid in stock," the charter limit (Miss.) 685b. 

Power under Charter 

to hold real estate, necessary for bank's use, does not authorize contract to purchase and 
convey land (Mich.) 601a. — a«fi? to invest in evidences of debt, authorizes loan secured 
by trust deed of land (Miss.) 687d. 

to purchase notes \s implied from power to purchase commercial paper (la.) 308b; or- 
"effects" (Mo.) 694b; or bills of exchange (Ky.) 342e; contra (Ky.) 341c. 



INDEX 31 



CHARTER— Continued 
Power under Charter (continued) 

to discount paper is implied from bank charter (Ind.) 256b; but not from power to buy, 
sell or loan on real or personal property (N. Y.) 976a. —payable at a bank, is im- 
plied from prohibition against discount of paper not so payable (Tenn.) 1284b. 

is not subject to collateral attack (La.) 384b. 

Alteration of charter power to seize and sell real estate, mortgaged to bank, in whoseso- 
ever hands it may be found, is not effected by probate sale of the property (La.) 
405c. —by subsequent statiite enlarging power of summary proceeding, applies to. 
after-acquired notes alone (Ala.) 6b. 

Remedy 

by injunction is not available to determine charter rights of bank (N. Y.) 855c. 

Repeal of Charter 

operates to dissolve bank (Mass.) 529e. —to bar action against corporation (Me.) 470a. 
— to prevent entry of judgment against corporation (Me.) 466b, 469a. —to render at- 
tachment, filed after injunction on repeal, subject to be superseded by subsequent 
appointment of receiver (Mass.) 530a. 

does not operate, if conditional, to divest legal title to land without judicial decree (Mich.) 
605d. — to prevent billholders, in due course after repeal, from obtaining the rights 
of creditor^ (Mass.) 534d. 

by legislature is possible where charter reserves power of repeal (la.) 282c. — is not 
presumptively an improper exercise of legislative power (N. Y.) 858d. — Us to branch 
bank, must be exercised through parent bank (Va.) 1374a. 

Repeal of specific provisions. General interest laws do not repeal charter provision au- 
thorizing higher rate (Ark.) 42d. Bank charter, permitting wife to bind herself jointly 
with husband for debt to bank, is not repealed by act, forbidding generally such con- 
tracts, but not referring to charter (La.) 405a. Stockholders' liability clause in 
special charter was repealed by Laws of 1886 subjecting private corporations to gen- 
eral statute (Vt.) 1366a. Act of December 10, 1841, did not supersede "provisions of 
charter enacted December 4, 1841 (Ga.) 149d. Repeal of clause of state bank char- 
ter, that state would take bank's notes as legal tender, is unconstitutional (Ark.) 50c. 

Act, continuing power to sue after repeal of charter, is valid (Ky.) 347d. 

Compliance zuith saving clause in act repealing charter must be shown by defendant 
bank (Mich.) 599a. 

Restriction in Charter 

prohibiting loans of large amounts, forbids large loan to one person in small sums 
(Ala.) 10c. — to officers, prohibits president from taking bank's checks for personal 
use and making payment by checks on its depositaries (N. Y.) 972a. — to officers or 
stockholders, prohibits loan to firm of which officer or stockholder is member (N. Y.) 
978d. 

Prohibiting dealing in merchandise, does not forbid receipt of merchandise as collateral 
(Ala.) 10c; or to settle debt (N. Y.) 892c. — is not violated by isolated transaction 
in which merchandise is consideration for guaranty of bill of exchange (N. Y.) 892c. 
—goods, wares, or other commodities does not forbid purchase of stock (Vt.) 1349b. 

prohibiting use of funds in trade, does not forbid purchase of promissory notes (Mass.) 
516a. 

prohibiting purchase and holding of land, does not forbid purchase subject to Statute of 
Mortmain (Pa.) 1171d. — does not forbid taking of land in payment of preexisting 
debt, not otherwise collectible (Ind.) 246b. — does not render title, acquired in viola- 
tion of restriction, defeasible otherwise than by Commonwealth (Pa.) 1171d. 

prohibiting transfer of stock within limited period, does not bar action for dividends, by 
original subscriber, for benefit of equitable transferee (Mass.) 523a. 

prohibiting indorsement of note due bank so as permit suit in indorsee's name, does not 
forbid action for the bank in name of original payee (Vt.) 1352a. 

p>rohibiting taking of -more than legal interest does not limit bank, contracting in an- 
other state, to interest permitted by laws of its home state (N. Y.) 955a. 

as to rate of interest on loans and discounts does not apply to discount of note given for 
preexisting debt (Ohio) 1145c. — applies only to loans and discount made with bank's 
money (La.) 379c. 

requiring presidents signature does not apply to ordinary business acts of cashier 
(Ga.) 139a, 141b, (Tenn.) 1288a; or to drawing and indorsement of drafts (Tenn.) 
1292c. 

requiring directors' assent to assignment of bank property, gives bank alone the right to 
object if such assent be not obtained (Wis.) 1405a. 

Revival of Charter 

of Bank of Missouri was effected by Act of 1857 (Mo.) 701c. 
does not operate to revive debts or judgments (Del.) 128a. 

Special Charters 

Act of 1834. Constitution of 1821 was not part of the compact between State and cor- 
porators of bank organized under special act in 1834 (N. Y.) 923a. 



•32 BANKS AND BANKING 



CHARTER— Continued 
Special Chaarters (continued) 

Central Bank. Under charter, debts due the bank are entitled to priority in distribution 

of decedent's estate like debts due the public (Ga.) 143b. 
Citizens Bank. Under charter, court has control over mortgage to secure loan, unless 

debt has been paid (La.) 415c. 
Missouri State Banks have power, by charter, to sell bonds (Mo.) 740b. 
Port Gibson Bank. Authority of bank to contract in Mississippi, when contract was 

entered into there, cannot be questioned (La.) 394a.' 
St Albans Trust Co. Provision in charter (St. 1868, No. 157), requiring assessment if 

capital be impaired, applies only if business continues (Vt.) 1359c. 
State Bank is subject to Statute of Limitations (Ala.) 15a. 
Union Bank cannot apply dividends on stock held by state to extinguishment of state 

bonds and to school funds (Tenn.) 1284e. Stipulation for increased interest after 

maturity of mortgage is valid under charter (La.) 419c. 
United States Bank. Where charter gave two years to sue after expiration, and, within 

that time, Act of Congress provided that no pending action should be abated, the act 

is effective in State courts (Ky.) 352c. 

Stockholders 

Capital stock includes deposits, authorized by charter to be treated as payments on stock 
at depositors' pleasure (Ky.) 353e. 

Charter liability of stockholders on judgment against bank necessitates their defense of 
suit against bank (Ga.) 156b. —for unpaid debts of bank applies to non-resident 
stockholders (Mo.) 719c. — under special charter was destroyed by Laws of 1886 sub- 
jecting private corporations to general statute (Yt.) 1366a. 

Charter liability of stockholders' property creates no personal liability (N. Y.) 954c; and 
has no extra-territorial effect (N. Y.) 948b. 

; Subscriptions 

Charter provision for forfeiture of paid instalment of stock subscription, by non-payment 
of subsequent instalment, is valid (La.) 376c. — as to original subscriptions does not 
apply to subsequent stock issue (N. Y.) 914b. — allowing subscription by any real 
estate holder gives colored subscribers vested right to become stockholders (La.) 382c. 
—requhing payment of part of subscription as condition precedent, gives no rights 
to one giving note for the amount (Miss.) 672b; but application of proceeds of note, 
discounted with maker's consent, to payment of the stock, makes him stockholder to 
that extent (Miss.) 672b. 

iSurrender of Charter 

is not effected by resolution of stockholders and notice to state (Ga.) 153b. 

extinguishes right to enforce tax assessment (Md.) 505d. 

does not extinguish existence of corporation for payment of debts (Me.) 461a. —power to 

bring suit in corporate name, through receiver, to collect assets (Me.) 477d. 
Statute of Limitations runs against creditors from acceptance of surrender (Ga.) 160d. 

'Terms 

"Apportion among" in charter authorizing stock subscriptions, do not require that 

every subscriber shall receive some stock (N. Y.) 863a. 
Associates, in charter granted to petitioners, associates and successors, refers only to 

actual associates of petitioners (Mass.) 540b. 
Banks. Term "other banks" in charter does not include unincorporated banks (Ky.) 

358c. 
Debts, in charter, includes certificates of deposit immediately redeemable (Ga.) 152a. 
Failure, within meaning of charter, results from suspension and refusal of specie pavment 

(Ga.) 141d. 
Hypothecation contracts do not include promissory notes (La.) 404a, 418c. 

Validity 

of bank charter is not destroyed by failure to publish for period required by the consti- 
tution (Miss.) 665e. 

Tiolation of Charter 

is not effected by isolated transactions (N. Y.) 881c, 892c. 

cannot be set up in a collateral proceeding (La.) 407c. —by one who has received bank's 

funds (Fla.) 135b. 
renders bank liable for injury to property rights caused thereby (Md.) 501a. —excess 

interest over charter limit invalid (Mo.) 710d. 
of bank, by agreement to collect in depreciated paper, is no ground for suit on debt 

(Mo.) 697c. 
of creditor bank does not affect pledge to creditor's agent (Ala.) 28d. 

'Waiver 

of charter provision, making entire mortgage debt due on default in payment of instal- 
ment, effected by bank's petition praying payment only of instalments due (La.) 426c. 



INDEX 33 

CHECKS 

Acceptance 

what constitutes: Payment or credit (111.) 229d, (Ohio) 1154c, (Pa.) 1203d, (S. C.) 
1259d. Verbal promise to pay (la.) 306b, (111.) 193c, (W. Va.) 1391c. Settlement 
with depositor and retention of amount of check (Pa.) 1215b. Designation of 
drawer and amount, in drawee's promise to pay (Tex.) 1330a. 

What does not constitute \ Mere detention by bank (Colo.) 101a, (N. J.) 825a; contra (Pa.) 
1217b. Placing check on canceling file by mistake (Ind.) 264b. Bookkeeper's statement 
that check will be good (Wis.) 1407a. Acceptance not inferred unless intention is 
clear (Colo.) 101a. Determination is a question of fact for jury (Pa.) 1217b. 

Drawee liable only on acceptance (Ind.) 264b, (N. C.) 1122d, (Tenn.) 1299c. —for 
resultant damage (Neb.) 803b. —o«/j/ on acceptance of particular check (Ohio) 1158d. 

Drawee not liable for failure to accept by telegram (111.) 214a. 

Drawer not relieved by acceptance (Ohio) 1161d. 

Effect is an assignment of fund (111.) 243c. 

Promise to accept nonexisting check is valid (111.) 193c. 

Alteration 

What is material. Change from order to bearer (Mass.) 550a. Felonious alteration in 

amount (Cal.) 64c. 
Immaterial. Difference in writing of body and signature (Cal.) 64c. Erasure before sign- 
ing (Mass.)524e. Line through body of check (Tex.) 1330a. Touching up signature 
(N. Y.) 1037b. Alteration with drawee's knowledge (Md.) 511c. 

Assignment 

yii5Jg-««« stands as former holder (111.) 243c, (Pa.) 1220b. — i5sco?«^5 purchaser by credit- 
ing check (Mass.) 592c, (Mo.) 747b. — must show consideration (Okla.) 1166a. 
Title passes by parol assignment (N. Y.) 1026c, (Pa.) 1226b. 

Authority to draw 

Not gfi)en by introduction for identification (Mass.) 559c. Nature of business determines 
whether check was drawn within reasonable time after authority given (la.) 306b. 

Blank 

Payee's executor cannot fill in blank as to amount, but recovers amount actually appro- 
priated (La.) 375b. 

Certification 

Definition. Certification is an acceptance (La.) 437a, (N. Y.) 1050d. Statement by 

bank's agent that check is all right is not equivalent to certification (Mo.) 733c. 
Who may certify. National bank (N. Y.) 1028a. Bank president may certify all but his 
own (N. Y.) 927c. Cashier cannot certify in absence of funds or before date of pay- 
ment (N. Y.) 946b. Teller has no inherent power to certify (Mass.) 533d. 

Drawee is liable for certification by its officers (Mass.) 572d, (N. Y.) 907d, 932b, 950b, 
959a, 961a, 974c, (Pa.) 1218b; unless ultra vires and fraudulent (N. Y.) 966b. 
— cannot set off debt of holder (111.) 193a. — negligent, if certifying with notice suffi- 
cient for inquiry (111.) 2ipa; or where alteration of check is easy (La.) 437a. — liable 
for paying certified check after attachment (N. Y.) 970d. — m.ay pay on identification 
of payee (N. Y.) 976c. — may recover from drawer, whose check was overcertified 
under agreement to make good, although drawee took a worthless note therefor from 
drawer (Vt.) 1351c. 

Z?ra2e/^r discharged by certification (111.) 193a, 218a, 219c, 242c, (Ind.) 271a, 274a, (La.) 
436e, 444a, (Mo.) 765b, (N. Y.) 955b, 955c, 959c, 961b, 986d, 1050d, (Pa.) 1192b, 
(Tenn.) 1299b; contra (Mass.) 587b, (N. Y.) 1015e, (Tenn.) 1295d. —cannot revoke 
certified check (Ala.) 31c. — released by payee's use of fictitious name (Ind.) 274a. 

Holder may recover on forged checks (N. Y.) 955b, 965d. — only amount of deposit, if 
he knows it to be insufficient (N. Y.) 1094g. 

Holder' cannot recover in absence of payee's indorsement on a check to order (N. Y) 1024b, 
1033b. —be nonsuited if any evidence to support his claim (Pa.) 1218b. 

Indorser not released if duly notified of dishonor (La.) 438a. 

Demand not waived by certification (N. Y.) 1006c, (Pa.) 1192b. —is necessary to start 
Statute of Limitations (Pa.) 1192b. —delayed, is not a dishonor (N. Y.) 959c. 

Effect. Warrants only drawer's signature and sufficient funds (Ala.) 17b, (111.) 216d, 
226c, 242a, (N. Y.) 896c, 963b, 968b, 974c. Circulates as cash (111.) 242c, (N. J.) 
846c, (Pa.) 1192b; contra (Colo.) lOle, (Ind.) 271a. Carrier's title to the amount 
specified (111.) 237c. May be canceled, if by mistake and without prejudice to parties' 
rights (111.) 237b, (N. Y.) 1042d. Is not against deposit of same day, (N. Y.) 1050d. 
Not affected, if subsequent, by failure to indorse before delivery (N. Y.) 986d. If 
illegal, does not prevent recovery on security for overdraft (N. Y.) 1024d. 

Collection (see also Collections) 

Indorsem,ent for collection does not make check a bill of exchange (Ky.) 356b. — war- 
rants only the names then on paper (Ohio) 1162d. 

Consideration 

Imported by check (N. Y.) 850a, 1077b; but when rebutted, question is for jury (Mo 
747d, 748d. 



34 BANKS AND BANKING 



CHECKS— Continued 
Consideration (continued) 

What constitutes. Checks given in exchange (Me,) 472a, (Mass.) 550b, (N. Y.) 892a. 
Promise to pay checks to amount of deposit (Md.) 513b. Delivery of chattel to 
maker is good consideration for bank's promise to pay checks (Neb.) 778d. 
What is insufficient. Act which is of no- advantage to drawer (Mo.) 748d. Payment 
of illegal contract (Ohio) 1158d. Discount by credit to depositor (Pa.) 1220b. 

Construction 

Check payable to fictitious person is payable to bearer (N. Y.) 896c. —for "one fifty 
dollars " is for $50 (Wis.) 1407c. 

Fund or person not identified by adding "assignee" (Pa.) 1208e, but notice of trust is 
given by word "trustee" (Ind.) 266b. 

Intention as to non-negotiable check may be shown by parol (la.) 290c. 

Presumption is that abbreviations were read by transferee (N. J.) 827a. —that check was 
authorized if drawn by agent in course of duties (S. C.) 1273a. —that check was drawn 
on funds (N. Y.) 899a. —that check payable to notes or bearer is to pay drawer's 
debt to bank (N. Y.) 992b. —that check is drawn on bank in place where it is dated 
(Ind.) 270d. 

Stipulation as to who shall present check is proper (N. C.) 1122d. 

Words in body of check control (Ind.) 264b. 

Date 

of cashing a check determines title (111.) 195e. 

Checks are regarded as drawn and payable on day of date (N. Y.) 907b, 946b. 

Definition 

Check is order to pay amount out of deposit and is not an assignment pro tanto (Ga.) 
171a, (Mich.) 605a, (Minn.) 645c, (N.Y.) 1094f, (Ohio) 1148a, (Tenn.) 1307c, 1313c; 
contra (111.) 223b, 229c, 234a. —equivalent to a bill of exchange (N.Y.) 940.b, (S. C.) 
1259d, (Wis.) 1407c; contra (111.) 211d, (Mass.) 585b. —a draft (Kan.) 335c. 
—order payable to bearer on demand (N. Y.) 872d, 930a. —chose in action assign- 
able by parol, with delivery (N. Y.) 986d. — implied protnise to pay bank if honored 
(111.) 221b. — within statute relating to bonds, bills or notes payable to some person 
or bearer (Ala.) 36a. —not a note for security (N. Y.) 850a. —not legal tender (Pa.) 
1221b. 

What constitutes check: Bank's acceptance of note payable at bank (N.Y.) 954b, (Pa.) 
1218a. Written order to pay to another's order after date (R. I.) 1250b. Written 
order to pay to payee for account of one not drawer (111.) 207a. Draft of one bank 
on another (Cal.) 99d. 

What does not constitute check. Sight draft (Mich.) 613c. Check payable in currency is 
not negotiable (Ala.) 28a. 

Delivery 

is assignment of deposit, pro tanto, as between drawee and payee (Mo.) TZ^b.. 

passes title to check payable to bearer (Md.) 492b. — to client, where check is delivered to 

attorney (111.) 216d, (N. J.) 828d. 
not effected by deposit in mail (111.) 216d. 
rebutted by drawer's possession (111.) 216d. 

Demand 

Interest allowed on check from date of demand (Mo.) 735c. 

Must be made to effect maturity (111.) 242c, (Minn.) 641a. —to hold maker (Kan.) 

313c. —to hold indoTser (Me.) 471a, (N. Y.) 864c, (Wis.) 1417b. 
Unnecessary after dishonor (Kan.) 313c. —to recover -payment of altered check (Cal.) 64c; 

or of dishonored check, made in ignorance of neglect in collection (N. Y.) 1090e. 
What constitutes: Ojfer of check in payment of draft (Wis.) 1407a. 
What IS not: Drawing check (N. Y.) 1006c. Presentment by forger (N. Y.) 996b. 
Waived by drawer's statement that check will not be paid when due (Cal.) 63a. — by 

agreement (Ind.) 261d. 

Deposit 

Effect. Bank receiving deposit of check becomes bona fide holder for value (111.) 207a, 
220a, 233b, (La.) 433b, (Mich.) 613e, (Minn.) 658a, (Mo.) 726b, 747b, (N. Y.) 
892a, 1050d, 1077b, 1088a, (Pa.) 1248b; contra (Cal.) 65c, (111.) 219b, 226a, 
(N. J.) 846b. Deposit of check in escrow is deposit of money (Kan.) 333b. Does not 
pass title if made with cashier out of banking hours (Mass.) 540e. 

Dishonor 

Definition. Refusal to credit check is dishonor (Kan.) 313c. 

Depositor, taking up dishonored check, acquires rights of payee (111.) 189a. 

Effect. Drawer is liable to holder (Minn.) 645c; if injured by delay (Ind.) 262b, and 
drawee is liable to drawer, if improperly dishonored (N. Y.) 1092b, (Ohio) 1162b; 
but not in tort (Tenn.) 1320a; cont7-a (111.) 220b. Revives original indebtedness (Ind.) 
276c. Special damages are not necessary for action (N. Y.) 1065b, (Tenn.) 1320a. 

Notice. Drawer having no funds or withdrawing them is not entitled to notice (Ind.) 



INDEX 35 

CHECKS— Continued 
Dishonor (continued) 

264a, (Neb.) 773b, (N. Y.) 1060a. Due notice puts loss on drawer (D. C.) 130c, 
(Ind.) 262b, (La.) 438a; or indorser (La.) 438a, (Neb.) 793b. Must be given 
promptly (Ala.) 37d, (Mass.) 592c, (Mich.) 617e, (Neb.) 782b, (N. Y.) 905a. 
IVaived by indorser (Me.) 481d. — when it could not benefit maker (Pa.) 1190c. 

Drawee 

Agent for owner, when holding check for collection (la.) 290c; contra (N. Y.) 988a. 
cannot pay subsequent checks of insolvent drawer, after refusal of prior check (Mo.) 714a. 
Duty. Need not present check for drawer's certification (la.) 309d, (La.) 386a. Must 
know state of depositor's account (111.) 220a, (N. Y.) 928c, 930a. Must examine check 
within reasonable time (111.) 202d. Must apply drawer's deposit as far as it goes 
(Mo.) 749a. Must know depositor's signature (Ga.) 167a, (Ky.) 366a, (N. Y.) 
998b, (Pa.) 1210c. Must show payment of unindorsed check after account balanced 
(Wis.) 1414c. 
Not liable to holder on promise to depositor (Mass.) 553b; contra (Neb.) 778d. — on 
drawer's admissions after drawing check (Ohio) 1152a. — until acceptance (N. J.) 
825b, (N.Y.) 940b, if holding check an hour for examination (111.) 202d. —to drawer 
if acting as agent of collection bank (Ala.) 37d, or paying from general fund if gen- 
eral and special fund mixed (111.) 243c. — in damages, for mistaken refusal to pay 
(N. Y.) 1056c, unless damage shown (Neb.) 803b. — to holder of unaccepted check, 
suing in his own name (Colo.) 101a, (Pa.) 1221b, 1221c, 1224d, (Tex.) 1337a. 
Liable for payment of forged or fraudulent check (Cal.) 74b, (Ga.) 166c, (111.) 237c, 
(Ky.) 366a, (Me.) 491a, (Mass.) 596b, (N. Y.) 902b, 969d, (Ohio) 1162d; contra 
(Ala.) 35a, (Pa.) 1247a. See also Forged Instruments, Check, —to holder for 
fraudulently paying maker (Minn.) 664a. —for paying without funds (N. Y.) 
930a, or after drawer's power of attorney has expired (111.) 195c. —for impairing 
depositor's credit (N. Y. ) 1092b. -for not applying check to individual account^ 
though signed "assignee" (Pa.) 120Se. — only on genuineness of drawer's signature 
(N. Y.) 1078b. -for payment not according to indorsement (Conn.) 120d. 
Insolvency of drawee does not change relation of parties (111.) 235b, (Minn.) 645c> 

(Neb.) 776d. 
Remedies. Discounting drawee of forged check may proceed against immediate indorser 
(Ky.) 372b, (Mass.) 553a. May recover for overpayment (Ky.) 354c, or payment 
by mistake (Mass.) 575d, or though canceled by mistake (Mo.) 721b. 

Drawer 

Liable to innocent holder (Conn.) 114c, (111.) 236d, 243c, (Mich.) 633c, (N. Y.) 986d. 
— zy check is presented in time and dishonored (Conn.) 120c, (la.) 305b, (111.) 192b, 
199b, 223c, (Mo.) 715c, (N.Y.) 849c, (Va.) 1374c, (Wis.) 1403b. —^2'f« j/ drawee 
is collecting agent, in absence of injury (Ala.) 37d. — unless damaged by failure to 
give notice of dishonor (Ind.) 273a, (Md.) 493d, 508c, (Miss.) 680b. —to the payee 
named (Ind.) 273a. -for negligently issuing checks (La.) 432a, (Mass.) 550a. 
— though currency has depreciated (Mo.) 700d. — though check is charged to his ac- 
count (N.Y.) 1024c. — /Ao«^/2 trustee process has issued (Mass.) 554a. — only ^x^o^a. 
acceptance (Ind.) 264b, (N. C.) 1122d, (Tenn.) 1299c, for resultant damages (Neb.) 
803b. — only upon acceptance of a particular check (Ohio) 1158d. — though \t would 
have been paid if presented according to usage (Mo.) 715c. — to receiver of insolvent 
bank receiving check on deposit (Mass.) 578b. 

Not liable a,s snveitj (Ga.) 138d, (111.) 222b. ^or payment on forged indorsement (Cal.) 
99d, (la.) 301c. —in greater degree, because director (Ark.) 60a. —for {sdlure to 
examine indorsement (N. Y.) 1059b. — after tender of payment to holder. (Cal.) 64b. 

L>uty to examine books and vouchers within reasonable time (Md.) 508c, (N. Y.) 982a. 
— not to stop payment (111.) 243c. — not to withdraw funds against which check is 
drawn (Me.) 486a. 

Ratification of payment of altered check is question of fact (Mass.) 567c. 

Rights. Entitled to present payment by drawee frdm drawer's funds (N. Y.) 974c. 

Effect 

Cashier's check passes no title to fund (111.) 244a, and if for bank's debt does not 
change its liability (111.) 238a. 

Operate as an assignment of fund pro tanto (111.) 186a, 189a, 208d, 235b, 236d 241d, 
243c, (Ky.) 369d. — i/ fund is sufficient to pay check (111.) 238b; or is afterward re- 
ceived (111.) 240a. —if bank has notice (Ky.) 357c, (La.) 446a, (Ohio) 1161a. 
— if on particular fund (N. Y.) lOSld; or for restricted use (Pa.) 1211c. —ifonat 
special fund (Pa.) 1226b, (Wis.) 1426a. —if on a credit (Ky.) 374a.. 

Do not operate as assignment pro tanto (Mo.) 696e, (N. Y.) 884a, 970d, 1043c, 
(Okla.) 1165a, (Pa.) 1221b, (Tenn.) 1307c. —if payable in exchange (111.) 203a. 
— z/ without words of transfei and not drawn on a particular fund (Ind.) 268a. 
—if held in escrow (Ind.) 273a, (Pa.) 1194e. —if not accepted (111.) 219b, 221a, (La.) 
454a, (Md.) 506b (Mich.) 626c, (Tenn.) 1296b. — z/ for a portion of deposit and! 
not accepted (Mo.) 724e, 725b, 728a, 745a, 747a, 748a. —z/ an ordinary form andl 
uncertified (N.Y.) 1039c. —z/" larger than deposit and not presented in time (111.), 



36 BANKS AND BANKING 



CHECKS— Continued 
Effect (continued) 

236a, 237b. — though negotiated before drawer's assignment in insolvency (N. Y.) 
940b. — (/"deposit attached before presentation (Wash.) 1384c. 
Revocable before actual payment or acceptance (Mo.) 745a, (N. Y.) 884a. 

Evidence 

aof^wmzW^ under common counts (111.) 190b. -—in action for overdraft (Pa.) 1243c. —in 

form of magnified photographic copies (N. Y.) 965a. 
conclusive as to intent (Minn.) 680b. 

of appearance and condition of check admissible (N. Y.) 965a. 
Checks are not evidence of debt (Cal.) 62b, (Pa.) 1187a. —of criminal intent when 

drawn in good faith (Minn.) 662b. 
Protest admissible in suit against indorser (Md.) 506b. 

Forgery — see Forged Instritments 

Garnishment — see Attachment 

Gift 

Delivery. Payment or acceptance necessary to complete gift of check (Ohio) 1155b. 

Insufficient if given to be delivered after drawer's death (Mo.) 722b. Revoked by 

failure to present before drawer's death (Ohio) 1155b. 
Causa mollis. Check may be subject of gift causa mortis (Me.) 490b. 

Guaranty 

One authorizing payment of check is bound if drawer fails to refund (la.) 306b. 
Bank guaranteeing to another bank, is not thereby liable to holder (111.) 224b. By pay- 
ment, guarantor is subrogated to rights of holder (111.) 229a. 
See also Guaranty. 

Holder 

Bonsi Fide for Value 

Includes holder, prima facie (Ky.) 363c, (Me.) 472a, (N. Y.) 849c, (Okla.) 1166a, 
(Pa.) 1210d. — holder of check taken for prior debt (Vt.) 1365c; or given for 
note (Mo.) 735c; or of certified check (N. Y.) 911a. — bank, crediting check and 
paying proceeds before notice of defense (Mass.) 590c, (N. Y.) 939a, or acquiring 
title through ofl&cer's fraud (N. Y.) 1051a. — one without notice of advertisement 
of forgery (N. Y.) 955b, 955c. 

does not include bank merely crediting or taking post-dated check (N. Y.) 946b. 
— one taking for bond known to be illegally issued (Md.) 515a. — holder of presi- 
dent's check certified by him N. Y.) 927c, or of unindorsed check (111.) 210a. — one 
taking check on agreement to share profits which never arose (N. Y.) 964d, or 
taking check outstanding two years (N. J.) 827a, — indorsee of overdue (Pa.) 
1187a, or conditional check (Pa.) 1227b. 

Proof of bona fides necessary where check was stolen (N. Y.) 959c, or proven to be 
procured by fraud (Mo.) 746 b, (N. Y.) 892a. 

Proof of lack of bona fides must be given by one asserting it (Pa.) 1210d. 

Liability. Warrants genuineness of check and indorsement (N. Y.) 1078b; unless 
drawee is estopped by its own negligence (Pa.) 1247a. 

May recover against drawee (111.) 198a; after demand and refusal, if maker's funds are 
sufficient (111.) 234a, (Neb.) 777d, 801b, (N. Y.) 975d, (S. C.) 1269d, or if ac- 
ceptance shown (Tenn.) 1310d. — though bank has paid out deposit on forged 
check (Ky.) 373d. —though maker becomes subsequently bankrupt (Mo.) 721b. 
— on check certified by authorized agent (N. Y.) 911a, 932b, 950b, even if forged 
(N. Y.) 955b. — o« drawee's promise to pay made to maker (Kas.) 334a. — though 
check was countermanded or recalled by maker (111.) 198a, (Mo.) 728d, (Pa.) 
1170b; contra (Pa.) 1224d, where check is given for illegal purpose (Ohio) 1158d, 
or where indorsement is improper (Ohio) 1154c, or where check is in agent's name 
(Utah) 1345a, or where check is credited by agreement to drawee (Mo.) 726a. 

Cannot sue drawee in his own name (Colo.) 101a. 

May recover against maker (N. J.) 837d; though payee agreed to hold check (Mass.) 
590c; or though check indorsed for collection and credit (Ky.) 373a; or though 
check, unindorsed, was payable to bearer (Md.) 492b; or though check given with- 
out consideration (111.) 234a, if payable to bearer (Me.) 472a; or though defence 
of ultra vires set up (111.) 229a, 237c. 

Bound by adjudication of deposit (111.) 243a. 

iVo/ (Jo«»a? by equities between prior parties (Dak.) 126a, (Ind.) 274a, (Mass.) 549a, 
(N. Y.) 952b, 1004d, (Pa.) 1237b; unless check is unindorsed at time of transfer 
(N. Y.) 1033b. — by usage based on clearing house rules (N. J.) 825b. 

Subrogated, pro tanto, to drawer's right in collateral (111.) 241d. 

Indorsement 

Authority not implied from agent's power to receive checks (111.) 243b, (Tenn.) 1310d. 
—to stamp for collection (N. Y.) 1041b. —to sell goods (Tenn.) 1312d. —to present 
check for payment (N. Y.) 1034a. 



INDEX 37 



CHECKS— Continued 
Indorsement (continued) 

Principal not estopped to deny clerk's authority to indorse (N. Y.) 1041b. 

Blank passes title to bona fide holder (111.) 239b, (Okla.) 1166a; even if deposited for 

collection only (Mich.) 613e. 
Consideration: sufficiency or failure thereof may be shown (Ind.) 277b. 
Effect is to pass title (N'. J.) 837d; but not necessarily, (Mo.) 711d. —warranty of 

genuineness (Tex.) 1321b, or authority (Miss.) 694a. 
Forged— ste: Forged Instruments. 

Form may be by stamp (111.) 224b; or assumed name (111.) 229b, (N. Y.) 1045b. 
Necessary on check payable to order (N. Y.) 1024b; (Ohio) 1152a. 
Presumptions. Indorsement presumed to be made on date of check (Me.) 472a. 
Restrictive. "For collection" passes title to bank (la.) 297b, (Minn.) 644b; contra 

(Neb.) 793d, (N. C.) 1123b, 1123c. —does not become bill of exchange (Ky.) 356b. 

"For collection and credit" passes title, under agreement by which proceeds are treated 

as cash (Mo.) 745c. " For deposit" passes title to depositary or transferee (Md.) 513b; 

and authorizes bank to use, collect or have certified (111.) 242a. "Pay only through 

clearing house to E Bank" is equivalent only to presentment in person (Mass.) 596b. 

Indorser 

Discharged by holder's lack of diligence in presenting (N. Y.) 866a; or acceptance of 
new check (Ga.) 170c. — by existence of sufficient funds with drawee to meet check at 
maturity (Me.) 472a. 

Liability. Immediate indorser is liable to holder (Ky.) 372b. Cannot be charged in 
assumpsit as guarantor (N. Y.) 866b. 

Lex Loci 

Check governed by law where payable (111.) 208d, 219b. 

Mefnorandum 

Memorandum checks need not be presented by holder or demand made to hold drawer 
(Mass.) 524d. 

Negotiability 

Are negotiable (111.) 242c, (Mo.) 747b; though payable to "bills payable or order" 
(N. Y.) 943a, or "to order" and indorsed in blank (Mass.) 554a, or "to order or 
bearer" (Mo.) 737a, or without words "value received" (Mo.) 746b. 

Destroyed by expressed conditions or contingencies (la.) 290c, (Pa.) 1227b. 

Not destroyed by statute requiring negotiable notes to contain words "for value" (Mo.) 
737a. — by custom of bank to identify presenting party (Mo.) 746b. 

Partnership 

Bank liable for payment without authority (Pa.) 1233a, contrary to notice (Pa.) 

1233a, unless bank shows benefit to firm (Mich.) 617d. 
Particular notice may be set up, :'although firm had opportunity to examine checks 

(Mich.) 617d. 
Check cannot be charged to one partner where face shows part was for debt of other 

partner (Miss.) 689e, or if drawn after firm's dissolution (N. C.) 1119a. 

Payee 

Duty to notify drawee of suspicions as to genuineness (111.) 196b, but is under no obliga- 
tions to drawer to use care if check is unindorsed (Mass.) 591d. 

is owner (La.) 426b. 

Entitled to receive payment from drawee (S. C.) 1263c, (Tenn.) 1312d, notwithstanding 
drawee's agreement with depositor (111.) 189a, or fact that drawer had only depre- 
ciated notes on deposit (Miss.) 680c. — to sue in any name where payee's name is 
fictitious (Ind.) 274a. — to have check for collection, paid in clearance, treated as 
cash (Kan.) 340a. — to payment, in preference to later assignee of deposit (N. Y.) 
1039b, if assignee knows of check's priority (Ga.) 177a. — to have judgment, against 
drawer of protested check, satisfied from drawer's dividend in insolvent drawee 
(N. C.) 1118a. —prima facie to use checks (Pa.) 1119b. 

Not entitled to actual balance, where check is for more than deposit (Mass.) 548d. — to 
recover from drawee for refusal to pay (Mo.) 752d, (N. J.) 837b, though drawee has 
funds (La.) 431c, or has paid wrong person (La.) 440c. — to recover from re- 
ceiver, proceeds appropriated to payee's account Minn.) 644a. — to recover from drawee, 
on check given in exchange for draft for payee (111.) 203a, or from drawer, for check 
for which another has been substituted and left uncollected (Md.) 513c. — to recover 
repayment, under threat, of check cashed under agreement to repay if protested (N. D.) 
1129b. — i!o payment from accruing deposit of insolvent (W. Va.) 1394d. — must ^ly^ 
that nominal payee received proceeds to use of real payee (Pa.) 1199b. 

Satisfied by payment of check (111.) 189a, (Md.) 511c. 

Payment 

may be made, of check by draft, note or another check, if accepted (111.) 203e, (Kan.) 
338d, (Me.) 486a, and paid (N. Y.) 994c. —by use of any fund if not kept separate 
(111.) 243c. — by receipt by drawee, indorsement of payment and delivery to drawer, 



38 BANKS AND BANKING 



CHECKS— Continued 
Payment (continued) 

as between payee and drawer (Ark.) 60a. — by acceptance of less than face, being 
amount on deposit (111.) 240a. —by giving credit (Mo.) 747b, (N. Y.) 953d, 988a; 
contra, where governed by clearing house rules (N. Y.) 913a, (Pa.) 1221c, or on 
deposit of worthless checks (Pa.) 1196b, or as to indorser (Md.) 506b. 

cannot be made to other than proper party (111.) 226d, 243b, (Mass.) 583b, (Mo.) 

707c, (Ohio) 1159b, (Pa.) 1232b, (R. I.) 1257a, (Tenn.) 1315b, 1318c; and bank 

is held to high degree of care (Minn.) 658b. —after bank's failure (111.) 230a, or at- 

. tachment of deposit (111.) 208d. —iy receipt of check after drawer's failure (Wis.) 1420c. 

does not discharge debt unless accepted as payment (Ala.) 40b, (Cal.) 72a, (111.) 245b, 
(Me.) 479c, (Mass.) 535b, 562a, (Tenn.) 1299c; or unless actually paid (N. Y.) 
949d, 950a; and question whether absolute or conditional is for jury (Tenn.) 1295d. 

may be refused if deposit is insufficient (Col.) 103a, (111.) 205c, 229c, 239d, (Neb.) 
804c, or made for another special purpose (Pa.) 1216a, (Wash.) 1383c. 

by mistake may be recovered (Ky.) 341b, (Mass.) 550d, (Mich.) 607b, (Mo.) 728d, 
(N. Y.) 1050a; but only from drawer (S. C.) 1259d, and not from agent who has 
paid ovfr proceeds to principal (N. H.) 815a, and only if no laches or change in posi- 
tion of parties (Mass.) 551a, 575d; but payment of check by teller without exam- 
ining account is not mistake of fact (Mass.) 551a. 

must be made, if funds are sufficient (111.) 187c, (Neb.) 803b, (N. Y.) 1050a, (Pa.) 
1224b; even if deposited and drawn out by administrator on his private account 
(Pa.) 1246c. 

Not extended by taking security for payment (N. Y.) 1032c. 

Notice to stop makes bank liable for subsequent payment (Mass.) 590e, (Mo.) 728d, 
(N. Y.) 936d, 1087c. — not given by notice of depositor's suspension (Mo.) 721b, or 
by drawer's death not known to drawee (Mich.) 614d. — does not affeJ. innocent holder 
(111.) 238b, (Mo.) 728d, (Utah) 1343d. 

Presuinption that check is left outstanding not raised by refusal for lack of funds (111.) 
230b. — is that check is paid out of existing deposit (N. C.) 1102c; or in satisfac- 
tion of debt due drawers (Cal.) 92a (Tex.) 1323a. — i^a/ check in possession of holder 
is unpaid (Cal.) 99d. — that consideration has passed for check in drawee's hands 
(Tenn.) 1310d. 

Stopped by failure of bank (111.) 230a. 

See also Deposit. 

Post-dated 

Is bill of exchange entitled to grace (Cal.) 62c, (Mo.) 703c, (Ohio) 1148a, and notice 
(Cal.) 62c; contra (Mass.) 535b; and is negotiable before its date (Cal.) 62c, (Mo.) 
737a, but holder has not rights of bona fide holder (N. Y.) 946b. 

Is payable on or after date (N. Y.) 864c, 946b, or at sight (N. Y.) 866a, or after ex- 
piration of grace, and it is negligence to present it sooner (Mo.) 703c. 

Bank may purchase (N. Y. ) 1017d, or collect (Fla.) 132d, but pays before maturity at 
its own risk (D. C.) 132c, (N. Y.) 907b, and is bound to collect as soon after ma- 
turity as possible (Fla.) 132d. 

Validity destroyed by alteration before maturity (N. Y.) 1017d. 

Presentment 

Delay of holder discharges drawer, if unreasonable or amounting to laches (Ala.) 
35b, (Ga.) 140c, 173b, (111.) 210d, (Kan.) 325a, (Ky.) 355a, (Md.) 506c, (Mo.) 
696e, 710a, 714d, 733a, (Va.) 1374c. —drawee (Tenn.) 1294d. —indorser (Me.) 
471a, (Mo.) 706a, (Neb.) 783a, (N. Y.) 866a, (W. Va.) 1393c, (Wis.) 1417b, 
1421b. —if injmy results therefrom (Conn.) 114c, (Ga.) 138d, (111.) 199b, 210d, 
(Me.) 472a, 482a, (Mo.) 735c, 735d, 761c, (N. H.) 815e, (Ore.) 1168b, (Tenn.) 
1294d, (W. Va.) 1392a, 1393c, (Wis.) 1421b. 

What constitutes laches. 6 hours (Md.) 513c, 1 day (Ala.) 36d, (Neb.) 783a, 2 days 
(Mo.) 733c, 3 days (Me.) 471a, 6 days (N. Y.) 866b, 8 days (Mo.) 696e, 9 days 
(Wis.) 1408b, 20 days (N. Y.) 866a, 1 month (Mo.) 710a, 3 months (Mo.) 706a, 
5 months (Va.) 1374c, 9 months (Ky.) 355a. Unreasonable delay (Ga.) 140c, 
(Md.) 506c, (Mich.) 613b, (Mo.) 714d, (Neb.) 783a, 793b, (N. Y.) 866b, 987b, 
(Wis.) 1417b. Delay by clearing house (111.) 190a. Lack of utmost diligence (Md.) 
513c, or of due diligence (N. Y.) 866a. Delay, though holder deposits for collection 
(Vt.) 1363c; contra (Wis.) 1417b. Delay of more than one day in mailing checks 
on foreign bank or in presentment after receipt (Md.) 514a, (Mich.) 617e, (Vt.) 
1363c. What is reasonable time is question of law (N. Y.) 850a, and depends on 
circumstances (Mich.) 613b, upon which jury must be fully instructed (Cal.) 65b. 

What does not constitute laches. Same day, if parties live in same place (N. Y.) 950a, 
980a, 1 day (Cal.) 62e, (D. C.) 130c, (111.) 232a, (Ky.) 357a, (Mass.) 535b, 
(Mo.) 720a, (Neb.) 780b, (N. C.) 1113b, (N. Y.) 942c, 945b, 949d, (Ohio) 1148a, 
(Pa.) 1232a, 1237a, 1238b, (Wis.) 1421b. If parties live in same place (Ala.) 
40b, (III.) 210d, (Mich.) 614c, (Mo.) 730b, (Pa.) 1227d, (Vt.) 1363c, 2 days 
(111.) 220c, (Mass.) 554a, 3 days (Kan.) 336b, 6 days (S. C.) 1273a, 4 months, 
if no injury results (Mo.) 700d. If delivered for proper indorsement (111.) 199b. If 
not presented at clearing house after bank has closed (Pa.) 1234b. Delay in ac- 
cordance with usage (Conn.) 114d, (Me.) 480c, (N. Y.) 913a; contra (Mo.) 720a, 



._ INDEX 39 

CHECKS— Continued 
Presentment (continued) 

(Neb.) 783a. Delay, where drawer caused dishonor by withdrawing funds (Ind.) 
264a. Delay greater than allowed on bill of exchange (Ky.) 357a; contra (N. Y.) 
849c. Intrusting to bank for presentment to clearing house (Mo.) 715c. 

Agreement between parties is a question of fact (Mich.) 614c. 

Burden of proof of no injury is on holder (Ala.) 38b, (la.) 305b, (W. Va.) 1396b, 
(Wis.) 1408b; contra (N. Y.) 850a. —of excusing laches in presentment is on 
holder (111.) 192e. 

Effect. Fixes rights of parties (D. C.) 130c, (111.) 186a, 232b, 238a, 241d, (Mass.) 
540e, (Minn.) 645c, (Mo.) 714a, (Tenn.) 1307c; contra, as to drawee (Mo.) 
728d. Gives priority to one first presented (111.) 229c, 238a. Holder must take 
money or the risk of leaving it with bank (111.) 218a. Gives holder no rights after 
application of deposit. (111.) 227b. 

Bv agent not a negotiation (111.) 205e. 

For deposit equivalent to presentment for payment (N. Y.) 953d. 

Unnecessary if war prevents (Md.) 506c; contra (Va.) 1374c. —if drawer pays before 
discovering forgery (Pa.) 1170a. —if there are no funds (Ind.) 270d, (Me.) 472a, 
(N. Y.) 945b, (Wis.) 1408a. —if in hands of drawee or its cashier (Cal.) 99d, 
(111.) 240a. —if drawee has failed (Va.) 1374c, or check was drawn in bad faith 
(N. Y.) 858b, or if drawee states that payment was stopped (111.) 214b. 

Protest 

unnecessary to fix drawer's liability (Ala.) 28a, (Ind.) 261d, 262b, (Md.) 513a, 
(Neb.) 782b, (Wis.) 1407a, if notice of dishonor is seasonably given (La.) 438a. 

cannot supply omissions in complaint, though filed therewith (Ind.) 261d. 

waived by drawer's conduct (W. Va.) 1393c. 

not waived by notice to bank of check not presented (Mass.) 540e. 

Improper protest is not fatal without special damage (Fla.) 135c. 

Notice is sufficient if made on day after presentment by notary failing to state 
holder's name (Ky.) 343b. 

Negligence waived by drawee's use of check in proving claim against another (Tenn.) 
1295a. — not waived by lack of funds if drawer believed check would be honored 
(la.) 305b, or by drawer having bank notes, not cash, in drawee's hands (Mo.) 
696e; or by failure of state treasurer to take security for deposits (Mo.) 714d; or 
to tender to payee, without proof of drawer's knowledge of the laches (N. Y.) 
1085c. 

Reclamation 

cannot be made by drawer's receiver in absence of fraud (111.) 236a. 

may be m.ade after expiration of agreed time, if drawee is not injured (Mo.) 755a. 

Setoff 

not allowed for amount collected by subagent on debt due agent (Ala.) 37a. —for 
unmatured debt of depositor (Ky.) 370a. — on check indorsed by maker of accom- 
modation note, in an action on note by bank against accommodation indorser, but 
allowed in action by bank's receiver (N. Y.) 917b. 

Signature 

not denied, is admitted (la.) 297b, and once admitted cannot be denied (N. Y.) 1045b. 
Drawee's duty to know drawer's signature (111.) 226c, (Md.) 504c, 508c, and pay 

check only on proper signature (Dak.) 126c. 
See also Deposit. 

Statute of Limitations 

controls (111.) 221b, but not in equity where fraud is concealed (Del.) 129b. 

Trust Funds 

drawn by trustee in favor of cestui, sets aside so much thereof (N. Y.) 1017c. 

proceeds of check sent to drawee's receiver are not mingled with drawee's funds (Wis.) 

1428b. 
Depository paying funds on check of clerk of court is not liable (111.) 214d. 
Unauthorized application makes trustee liable (N. Y.) 1013e. 

CITY TREASURER 

(See Public Officers) 

CLEARING HOUSE 

Clearing house agent 

is not bound to present check directly to drawee (Pa.) 1234b. 

does not assume relation which bank, its principal, bears to depositors (N. Y.) 1060a. 

is not agent of bank for which it acts (N. Y.) 1061b. 



40 BANKS AND BANKING 



CLEARING HOUSE— Continued 
Collection 

through clearing house though customary, is not essential (Mo.) 715c. —does not change 
nature of transaction (N. Y.) 1050d. 

Deposit 

with clearing house of paper as security makes it bona fide holder (Pa.) 1235a. 

National Bank Act 

does not forbid clearing house agreement (Pa.) 1236a. 

Prohibition against preferences 

by insolvent, under Laws of 1892, ch. 687, does not apply to clearance agreement made 
when bank was solvent (N. Y.) 1061b. 

Rules 

bind members (Pa.) 1221c. — hanks having clearing house agents (N. Y.) 1097d. 

do not bind those not in organization (N. J.) 825a. 

are not admissible to prove negligent notification of forgery (Pa.) 1204e. 

CLERK 

(See Officers and Agents, Public Officers) 

COLLATERAL, 

Acceptance 

does not destroy principal security (Me.) 460c. 

of .note with third parties as securities waives right to mechanic's lien (S. D.) 1279b. 

Additional 

does not vary original contract (Tex.) 1824a. 

Application (see Deposit) 

cannot be made to other than specific purpose (La.) 382b, 435a, (N. Y.) 960a, 1012b, 

(Va.) 1377d, or to general balance, without proof of usage (N. Y.) 960a. 
is limited to debts in ordinary course though agreed to apply generally (N. Y.) 1091a. 
to another debt under oral agreement may be shovyn (Mass.) 558c. 
improperly made, should be credited on indebtedness (Me.) 486c. 
should be m,ade to deficit of pledged certificates where given to secure bank's debt to 

clearing house (Pa.) 1235a. 
of payment from joint debtor's estate should be made to his collateral (Mass.) 580c. 
Right to determine may be given by pledgor to pledgee (W. Va.) 1397a. 

Bank Book 

is good against subsequent attachment (Mass.) 568b. 

Bank Officers 

may pledge, if authorized (la.) 294d, but clerk temporarily, in charge cannot (N. Y.) 
934a. 

Bond 

need not be existing when note for which it is given is purchased (Mo.) 742a. 

taken bona fide and for value may be retained (N. Y.) 1024d. 

m.ay be held though not given expressly as collateral (N. Y.) 1046c. 

given for individual cannot be held for firm debt (N. Y.) 1066e. 

collectible by assignee (Pa.) 1173b. 

Proceeds of bond, pledged below par, must be refunded on re-delivery (Ark.) 53d. 

— render hajak, where deposited, liable to party forwarding for specific purpose (Mass.) 

960d. 
Value of bond is. taxable (111.) 184c. 

Care 

Ordinary care must be used (Ala.) 39b, (Me.) 479b, 481a, (N. Y.) 1034c. —does not 
cease on payment of debt (Md.) 507c. — must be used not to impair other indemnity 
(N. Y.)897c. —w used in employing reputable attorney to collect (S.D.) 1279a. —if not 
used, is not ground for trover (Me.) 480a. 

Certificate of Deposit 

owner of, may assign his equitable interest (Kan.) 334d. 

Check 

does not extend time if past due (N. Y.) 1032c. 

with notice of pledgor's defective title is invalid (Mo.) 711d. 

Drawer is general creditor, if given to firm to secure member on bond (111.) 222b. 

Consideration 

antecedent debt is (Colo.) 104c, (Conn.) 124c. 



INDEX 4.1 



COLLATERAL— Continued 
Conversion 

renders pledgee liable, by his refusal to deliver on demand after payment of claim 
(Mo.) 738d, or after selling claim (Cal.) 85b, or after tender of amount (La.) 435a. 
—by his release of (Tex.) 1327b. — by his delivery to nominal pledgor (Cal.) 96a. 
— by using for his own purpose (Mich.) 624d. — by holding after notice of pledgor's 
lack of title (Pa.) 1244a. —for real value in excess of debt (Pa.) 1195c. —for value 
of special interest if proved (N. D.) 1129a. —for value of debt due (id.), —for value 
at time it should have been used (Tex.) 1324a. 

does not make pledgee liable on mere demand and refusal (Me.) 480a. —for failure to de- 
liver if temporarily mislaid and creditor is not liable for breach of contract (Mass.) 
578c. —for accepting unauthorized security (Ohio) 1155d. —for claiming dividends 
and right to vote check (Tenn.) 1307b. 

County Orders 

constitute equitable assignment of fund and cannot be revoked after county has notice 
and acts thereon (la.) 290c. 

Credit 

should be given depositor on payment of notes^(Pa.) 1220a. 

Definition 

Collateral includes valuable instruments such as land warrants notjper se evidence of debt 
(Ala.) 39b. —personal security (Minn.) 637a. —bank deposits (N. Y.) 982b. —cov- 
ers present and future indebtedness (Pa.) 1195c, and partnership claims (Mass.) 
584c. — does not include bill of sale and deed by insolvent debtor (Wis.) 1415b, or 
mortgages for unfinished part of railroad, being built by bank (Ga.) 139b. 

Delivery- 
is necessary (Ind.) 267d, (Me.) 486c, (N. J.) 839c. 
Burden to prove, is on pledgee (N. J.) 839d. 

Deposit 

is proper, and bank cannot set it up in suit for deposit after breach of contract (N. Y.) 
975c. 

Dividends 

should be paid to pledgee (Me.) 490a, (Mass.) 561c, (Tex.) 1340c, if bank has notice 

(Neb.) 778c. 
are applicable to the debt (Ohio) 1156a. 
should be accounted for, to pledgor (Tenn.) 1307b. 
Payment of, with notice, protects bank (W. Va.) 1397a. 

Enforcement , 

may be -made, though given for illegal loan (N. Y.) 1005d; contra, (N. Y.) 889b. —in 
any order (Neb.) 787b. — in holder's own name (S. D.) 1283a. — after surrender 
thereof and deduction of amounts received thereon (Neb.) 786c. — against principal 
debtor's security subject to garnishee's lieu (Pa.) 124^^^. 

Evidence 

is admissible to show that attempted auction sale) was unsuccessful (Mass. ) 561c. — that 
transfer is only pledge (Mass.) 588d, (Mich.) 630a, (N. Y.) 911b. 

in mitigation of damages may be shown by deed of mortgaged premises (S. D.) 1279a. 

of principal's overdraft may be shown by his books (Mo.) 735d. 

i not admissible to show party holds other security (111.) 239b, :(N. Y.) 991b. —bank's 
fault in collecting, by cashier's statement (S. D.) 1275d. 

Insurance policy 

is valid for premiums and expenses, though notes were for more (Ga.) 176d. 

Interest 

is not allowed (N. Y.) 1060c. 

is allowed on demand note from payment of check it secures (Fla. ) 136c. 

may be recovered, though notes are still held and defense that officers of bank did not 

indorse a note also made by pledgor, is bad (Ind.) 255b. 
is governed by law of place where pledge is made (N. Y.) 910a. 

Levy 

may be made when stockholder refuses to renew note (Fla.) 133d. 

Lien (see Liens) 

exists in favor of pledgee against owner's assignee for creditors (Ark.) 55d. —against 
judgment creditor of pledgor with notice (Ark.) 59d. 

depends on possession (N. Y.) 873b. 

does not apply to general account where taken for specific account (Ky.) 364c, (Mass.) 
571d, (N. Y.) 997b. —arise by pledgor agreeing to leave his bank stock in bank 
(Mo.) 742c. — extend to holders of unaccepted drafts (S. C.) 1267a. 

not discharged by tender of sum due (Miss. ) 687d. 

is enforceable, though owner has other security (Kan.) 322d. 



42 BANKS AND BANKING 



COLLATERAL— Continued 
Note 

is entitled to full protection (Minn.) 636a. 
is applicable only to specific liability (Cal.) 98d, (Mass.) 531c. 
for general account, makes creditors owners until paid (Pa.) 1195a. 
may be taken by trust company (N. Y) 1005d. 

fraudulently procured, allows recovery only for unpaid part of debt (Neb.) 787b. 
may be sub-pledged to extent of debt due pledgee (N. D.) 1127c. 
may be offset by deposit (Minn.) 656d, if not sub-pledged (Pa.) 1235a. 
may be sued by pledgee (Micb.) 607c. 

is subject to any defense without making additional maker liable (Ohio) 1155c. 
holds, though principal has paid on other loans (la.) 297a. 
■makes holder a purchaser on surrender of other collateral (Minn.) 636a. 
transferred by partner, may be proved against firm (Mass.) 573d. 
makes bank agent for collection and subject to payee's defenses (Cal.) 75c. 
can be repledged only for same amount unless owner consents (Mo.) 738d. 
pledged for overdraft includes exchange on shipments (Mo.) 735d. 
renders accommodation maker liable only to amount of pledge (La.) 435b. 
may be given by president of manufacturing company for company debt (N. Y.) 1005d. 
not affected by prescription, while pledgee holds property (La.) 428f. 
cannot be claimed as pledge by other than holder (Minn.) 650b. 
is not for value, if taken after loan, without consideration (Wis.) 1420d. 
with notice, passes pledgee's rights only (N. D.) 1127c. 
without notice makes holder in good faith (Ark.) 56b, (Mont.) 769c. 
taken knowing cashier participated in loan is with notice (Ala.) 34c. 
with indorsement that it is held for another, is notice (Mass.) 563a. 

taken knowing that secured credit was for third party, cannot be charged to one obtain- 
ing credit (Minn.) 656b. 
for advances in business renders maker liable for overdrafts (la.) 293a. 
good faith in purchase of, is for jury (Mich.) 612b. 
Burden to prove is on plaintiff (N. Y.) 1047a. 
Payment of, discharges debtor (Ind.) 255b. 

Indorsers of, cannot use charter provision pledging shares for debts (R. I.) 1249a. 
Renewal of, covers whole debt (Mo.) 764a. 

Possession 

is necessary to constitute a pledge (Minn.) 650b. 

Ratification 

is accomplished by affirming the unauthorized transfer (Mass.) 573b. 

Recovery 

by pledgee must be on rights of original pledgee (Cal.) 96c. 

allowed only to extent of interest (Ohio) 1155c. 

not allowed to one fraudulently procuring the loan (Ga.) 169b. 

of proceeds, pledged for illegal loan, not permitted (Mass.) 539b. 

not limited against accommodation maker because part is worthless (N. Y.) 949c. 

cannot be had without showing purpose is fulfilled (Ind.) 251c. 

cannot include costs against holder without interest, but puts them on fund (N. Y.)- 

982b. 
by one not a party, is an action in rem (N. Y.) 982b. 

Redemption 

is cut off by proper foreclosure sale (Mass.) 564d. 

can be made only after payment of indebtedness (Pa.) 1235a. 

is subject to bank's lien (Ark.) 55d. 

Renewal 

is not accomplished by restoring collateral after wrongful surrender (Mass.) 562a. 

Sale 

is unauthorized if without demand or notice to pledgor (N. Y.) 953c, (Pa.) 1195c, but 

may be ratified or repudiated (N. Y.) 953c. 
for full value is not in fraud of creditors (La.) 385a. 
carries principal debt and interest (Mass.) 570a. 
prevents use of any part thereafter (N. Y.) 953c. 
need not be made though note remains unpaid (N. Y.) 917a. 

private, assented to, is defense to action for failure to make public sale (La.) 435d. 
being enjoined stops running of statute (Miss.) 687d. 
should be public (Ohio) 1156a. 
of mortgages deposited with comptroller to secure circulation, cannot be made to third 

party (N. Y.) 896b. 
^nay be viade though loan was to director and he pledged to bank (Cal.) 90d. 
under attachment conveys no title (Col.) 105a. 
Authority for sale includes authority to exchange (La.) 438c. 
Broker for sale not bound to inquire as to title (N. Y.) 1002c. 



INDEX 43 



COLLATERAL— Continued 
Stock (Plbdgb of) 

is discharged by tender of amount due (N. Y.) 1077d. 

not discharg-ed hj ieLilnre to paj debt within 60 days from maturity (N. Y.) 917a. 

gives holder only a special interest therein (N. D.) 1129a. 

does not make holder bound by knowledge of officers of bank (Kan.) 315c. 

does not -make holder liable as stockholder after officers' failure to make correct entry of 

transfer (Mich.) 630a. 
makes holders liable as absolute owners (Ga.) 173a, (111.) 197b, (Md.) 507d, (Mass.) 

534d, (Minn.)655d, only under ch. 226, Act of 1849 (N. Y.) 915a. 
must be in writing (Ind.) 267d. 
does not warrant assumption that pledgor's broker had authority to negotiate and 

charge subsequent loans against it (N. Y.) 1007a. 
does not cover future debts (Mass.) 588d. 
may be taken as collateral by bank if its own stock (III.) 227c, (Mo.) 761a, or that of 

other corporations (Tex.) 1340c. 
is sufficient if signed in blank (Mo.) 743a, or passed without being witnessed and regis- 
tered (La.) 406a. 
is deemed to be made on that security (N. Y.) 904d. 
gives holder right to transfer on books (Minn.) 640b. 
gives pledgee, without possession, right to stock, but gives bank right to charge it with 

debts before it bought pledgee's business (Mo.) 742c. 
gives purchaser right to claim against bank and intervener (Minn.) 662c. 
carries other security given for it (Fla.) 133d, but does not extend to debtor's surety, 

paying balance due (Mass.) 568c. 
defeats prescription (La.) 445b, 450c, though undelivered (La.) 429d. 
cuts o^ right to recoup damages for refusal to sell or transfer (Ga.) 163c. 
Failure to sell resulting in injury, defense to note (Ga.) 162c. 
Stock pledged to pay legacies can be held if unpaid (Conn.) 122a. — with notice of trust 

renders pledgee liable to trustees and cestuis (Mass.) 580b. 
Contract for sale cannot be altered without pledgor's knowledge (Mass.) 588d. 
Pledgee o/"sale liable for taxation (Me.) 469c; contra (Mass.) 537a. 

Subrogation 

gives checkholder the right of drawer pro tanto (111.) 241d. 

does not exist in favor of maker of note in doubtful assets until payment (N. Y.) 1060c. 

Substitution 

without new consideration does not extinguish debt (Ala.) 25c. 

is pledge of new securities (N. J.) 845a. 

Knowledge, makes pledgee bona fide holder (N. Y.) 949c. 

Surrender 

is a payment (Neb.) 787b. 

which could have been made, releases indorser (Neb.) 772d. 

renders maker of note the agent of holder (Ga.) 178b. 

Termination 

is not brought about by wrongful delivery to pledgors (Mass.) 562a. 

Title 

passes by assignment of debt (Ind.) 278b, when blank power of attorney is given (Tenn.) 

1307b. ■ 
of pledgor only passes (Pa.) 1219c; contra (N. Y.) 1064a. 
passes to innocent pledgee (La.) 434a, to new stock which he obtains in his own name 

(Pa.) 1246d. 
of pledgee only passes (La.) 448a, (Mo.) 713a, (N. Y.) 910a. —is temporary (Minn.) 

638d. 
does nat pass if trust is recited (N. J.)_ 839d, or though agreed to pass (Ga.) 174a. 
passes though executed contract is void (Md.) 505a. 

may be asserted by pledgee after consenting to a general sale (Ark.) 55d. 
Burden on plaintiff to prove it did not pass (N. Y.) 1028a. 

Transfer 

carries debt (Ark.) 53d. 

absolute on face is not fraudulent per se (Mass.) 520d. 

under power of sale in pledge is not fraudulent (Md.) 507d. 

is void if for void notes (N. Y.) 886c. 

of property as collateral in excess of deposits is invalid (Minn.) 642d. 

to pledgor without consent of original pledgee is invalid (Cal.) 96a. 

makes transferee a trustee of balance remaining after satisfying debt (Mass.) 520d. 

is required on payment and demand, under agreement to recognize on payment of note 

(N. Y.) 1090b. 
under contract to purchase all notes of a company, does not include collateral (N. Y.) 

860b. 
Right to transfer unaffected by appointment of assignee in bankruptcy (Ohio) 1156a. 



*4 BANKS AND BANKING 



COLLATERAL— Continued 
Transfer (continued) 

Refusal to transfer does not make pledgee liable for difference between value when 
asked and price obtained (Ohio) 1156a. 

Validity 

is not affected by pledgor's unexpected insolvency, if pledge was made in good faith and 

for full consideration (La.) 455b. 
of pledge to creditor's agent is not affected by violation of charter of creditor bank 

(Ala.) 28d. 
of collateral necessary for securing deposits, is fixed by statute (Minn.) 642d. 

COLLECTIONS 

Agent as party to paper 

Collection bank is holder for purpose of receiving and transmitting notice (Me.) 459a, 
460b, (Tenn.)1286d. -/or purpose of suing maker (Ky.) 373a. 

Collection bank is not bona fide holder (N. Y.) 931b, (N. C.) 1119b. 

Collection bank becomes bona fide holder by crediting correspondent with amount of 
draft (Mass. ) 533c. — by paying correspondent, even though collection bank be desig- 
nated as place of payment (N. Y.) 883a. 

Collection bank does not become bona fide holder by omitting to draw balance firom 
correspondent (N. Y.) 931b, 947b. — by making further advances after receipt of 
paper (N. Y.) 947b. 

Collection bank is liable as holder if it forwards paper for collection without disclosing 
agency (N. Y.) 1057c. 

Appointment 

as agent of holder is effected by entrusting bank with collection of paper (la.) 296a, 
(La.) 377a, (Mass.) 583c, (Miss.) 688a, (Mo.) 747d, 759c, (Mont.) 769d, (Neb.) 
781c, (N. Y.) 995b, (Pa.) 1225b; by bank's acceptance of non-negotiable check on it 
(la.) 290c; by holder directing payment at a bank (W. Va.) 1389c. — is not effected 
by designation in instrument of bank as place of payment (la.) 305d, (Mich.) 631b, 
(N. J.) 835c, (N. Y.) 958a; even if holder forward paper with request for payment 
(N. Y.) 993a; contra (Wis.) 1413c. 

of subagent as agent of holder is effected by appointment of subagent by collection 
bank, in exercise of authority (111.) 189c, 228c, (la.) 290a, (Md.) 493b, (N. Y.) 
866d, 876a, (Tex.) 1336b; using ordinary care (111.) 244b. —is effected as between 
holder and drawer, by appointment of subagent by collection bank (Pa.) 1235c. 

of subagent as agent of remitting bank is effected by appointment by remitting bank 
(Ga.) 170b, (Neb.) 799b, (N. Y.) 1033c, 1075a, 1096c, (Ohio) 1147b, (Tex.) 1336c, 
(wis.) 1419a; if real ownership is obscured by unrestricted indorsement (Md.) 504b, 
(N. Y.) 1033c, 1062b, (Okla.) 1166a; or if remitting bank has no authority to dele- 
gate duties (S. D.) 1278b. 

of notary as agent of collection bank is effected by his employment to protest note (La.) 
377a, (Mo.) 704b, (N. Y.) 956d. 

Authority to collect 

includes authority to send draft for identification of signature (Cal.) 86c. — authority 
to waive effect of drawee's payment of forged check (N. Y.) 955d. — authority to 
make unrestricted indorsement, if indorsement to collection bank is unrestricted (Mass.) 
537b. —authority to appoint subagent, according to custom (Ky.) 369d, (Miss.) 
688a; or if paper is payable at a distant place (ill.) 227a, 228c, 236c, (Md.) 493b, 
(N. Y.) 866d, 876a, (N. C.) 1111a, (Tenn.) 1299d, (Wis.) 1399b. 

does not include authority to appoint subagent (Ga.) 170b; under statute, where note 
is payable at bank to which it is sent (S. D.) 1278b. — authority to extend time 
(Cal.) 71e, (Neb.) 804e. -authority to receive anything but lavvful money (La.) 
430b, (Miss.) 680c, (N. D.) 1128b, (Tex.) 1331b. —authority to direct credit of 
proceeds to collection bank (Pa.) 1220d. —authority to make owner a depositor by 
issuing certificate (Neb.) 788c. 

Bailment 

results firom deposit of paper for collection (N. J.) 846b; even if credit and power to 
draw be given, provided bank reserves power to charge back upon non-payment (N. 
C.) 1122b. 

^jr/ifȣfc to proceeds of collection (Ga.) 167c; contra (111.) 188b. 

is not destroyed by mingling of funds (S. D.) 1284a. 

Banker's Uen 

extends, to secure principal's debt, to paper held for collection (Okla.) 1166a, (R. I.) 
1255e. Contra as to proceeds if bank advances nothing on paper (Ohio) 1156c. 

exists, regardless of real ownership, in case of mutual accounts between banks, by which 
each credits the other with paper received for collection (Ind.) 251a. 

See also Lien. 

Burden of proof— see Pleading and Proof 



INDEX 45 



COLLECTIONS— Continued 
Charging back 

is permitted under agreement, upon non-acceptance (Mich.) 319b. — upon non-payment 
if there be no laches (111.) 202d. — upon discovery of forgery (Pa.) 1227a; even in 
case of drawee, if it has not made actual remittance (Ala.) 35a. 
is not permitted iiree years after discovery of dishonor (N. Y.) 980b. 
Prevents bank from suing on the paper (Dak.) 126b. 

Clearing house 

Collection through clearing house does not change nature of transaction (N. Y.) 1050d, 
or prevent delay from constituting laches (111.) 190a. 

Conflict of interest 

does not prevent collection bank from securing its own claim by mortgage (Kan.) 323c, 
(Neb.) 799c. —from obtaining priority for its own claim by attachment (la.) 294b. 

Bank is not bound to disclose its own claim against debtor to one intrusting it with 
collection of another claim (Kan.) 323c. 

Credit 

before collection is provisional (Ky.) 366c, (Minn.) 643b, 660b; by custom (Pa.) 1225b. 

— rfo« not change relation of principal and agent to that of creditor and debtor (Mo.) 

759c, (N. J.) 832a. 
after depositor's insolvency does not operate to make bank creditor, as against real 

owner of paper (111.) 244c. 
after notice thai draft ixnll not be paid will not make drawee liable (S. D.) 1277e. 
to collection bank by correspondent under mutual agreement, is advancement on general 

account and does not divest real owner of ownership of check restrictively indorsed by 

Hm (N. Y.) 1052c. 
is paytnent into general assets (Ohio) 1160d. 
is conclusive evidence of bank's intention to change its status from that of agent to that 

of debtor (N. Y.) 1096c. 

Creditor and debtor 

Collection bank becomes debtor upon collection (111.) 244c, (Ind.) 279c, (Ky.) 366c, 

(Mo.) 759c, (N. Y.) 1047b, (N. C.) 1120b, (Tex.) 1322a, (Wash.) 1387b, \contra 

if collection is on mortgage (Mich.) 622c], and insolvency (Tenn.) 1314c. — where 

maker of note pays it by check against his deposit in collection bank (Miss.) 691d. 

— by giving credit, after subagent's acceptance of draft in payment (N. Y.) 1075a. 

— by giving credit which is drawn against (La.) 444d. — by mingling proceeds with 

its own fiinds (Wash.) 1383a. 
Collection bank does not become debtor by receipt of paper for collection (Mo.) 759c. 

— by mailing its own draft to owner of collection paper (Wyo.) 1429c. 
Collection bank becomes creditor by giving credit by mistake, where paper is dishonored 

(Pa.) 1177c. 

Custom and usage 

Collection bank may follow custom in collecting, (Cal.) 86c, (Ky.) 369d, (N. Y.) 866d, 
if reasonable (Tenn.) 1317c. — to effect collection by balancing accounts (Tenn.) 
1313a. — /i5 entrust paper to express company, if no bank at place of payment (Wis.) 
1399b. — to protest certificate of deposit without grace (la.) 289b. — to keep notes 
until close of banking hours and then give to notary for demand and protest (Mass.) 
539e. — to send draft direct to drawee (Ore.) 1169c; contra (Mo.) 753a. 

Collection bank may not follow custom involving negligence or bad faith on part of 
bank (Neb.) 798a. — to take Trust Company check in payment (N. Y.) 940a. — not 
to disclose agency in making collection (N. Y.) 873 d. 

Usage cannot affect agent's liability to principal for proceeds (N. Y.) 886a. — of banks 
as to mutual accounts does not affect claims of third persons (Conn.) 110c. 

Definition 

Collection of notes for a stipulated reward is not a trading in such notes (Pa.) 1185a. 

Delay 

in collection through clearing house, is laches (lU.) 190a. 

without damage cannot be set up by bankers, after liability has been fixed (111.) 217c. 

Demand 

is essential before principal can sue agent for money collected (Mo.) 697b. — before col- 
lecting bank can be sued for conversion (N. Y.) 1062b. 

is not essential if proceeds have been appropriated by collecting bank with knowledge 
of true owner's claim (N. Y.) 931b. — before suit for proceeds against assignee of 
insolvent collecting bank (N. Y.) 1030b. — before suit by indorser to recover money 
paid to take up paper, while he was ignorant of bank's negligence (N. Y.) 1090e. 

is question for- jury (Mo.) 697b. 

Diligence 

Collection bank is diligent if it forwards paper promptly to its correspondent (111.) 186b, 
228c. —if it makes presentment with reasonable diligence (S. D.) 1283e. —if it uses 



*6 BANKS AND BANKING 



^.,. COLLECTIONS— Continued 

Diligence (continued) 

same diligence in demand and notice as is required of holder for value (La.) 376f, 
380c, (Tenn.) 1286d. 
Collection bank is not diligent if it retains draft without acceptance for 20 days (Conn.) 
121b. — if after mailing draft to correspondent it fails to inquire about collection for 
over two months (La.) 385f. 
Burden of proving diligence, if no demand made, is on collecting bank (N. Y.) 945c. 
±:.vidence of diligence maybe given by collecting bank, though an indorser was shown to 
have been discharged in a prior suit by plaintiff against him (La.) 377c. 

Duty of collection bank 

includes duty to use care and diligence (Neb.) 804e, (Pa.) 1177c, (Tex.) 1333c; in mak- 
ing presentment (Conn.) 121b, (Ga.) 155a, (Ky.) 350d, (La.) 385f, (Miss.) 667a, 
(Mo.) 761c, (Utah) 1342b, even though ignorant of drawee's insolvency (Ind.) 277c; 
m giving notice of dishonor (Miss.) 667a; in selecting agents (Kan.) 325a, (Ky.) 
369d, (N. Y.) 866d, (Pa.) 1225b, (Tenn.) 1299d, (Tex.) 1334b; in keeping collateral 
(Ala.) 39b; in presenting check received in payment (N. Y.) 987b; in notifying prin- 
cipal of loss of paper (N. Y.) 970c. —duty merely to obey instructions (la.) 294b, 
(Pa.) 1177c. —duty to collect in lawful currency alone (111.) 226a, (La.) 433c, 
(Miss.) 686c, (N. Y.) 940a, 1075a, (Pa.) 1222d; even though there be custom to 
take Trust Company check (N. Y.) 940a. —duty to collect interest (N. Y.) 1071:. 
—duty to notify principal of collection (N. H.) 813c. —duty to notify principal of 
inability to collect (La.) 433c; within reasonable time (Neb.) 807c, (Pa.) 1185a; or 
in accordance with instructions (N. D.) 1129d. —duty to pay over or account to 
principal (111.) 240b, (Md.) 512c, (Mich.) 620a, (Mo.) 740c, 749a, 765a, (N. Y.) 
1012d. —duty to make presentment (Ind.) 248a, (Kan.) 340b, (Mass.) 532c, (N. 
f Y.) 932c, 945c, (N. C.) 1111b, (S. C.) 1259b; immediately (la.) 292c, if it knows 

of impending insolvency of drawee (Mo.) 761c. — duty to protest (Ind.) 262c, (La.) 
430a, (Minn.) 642c, (N. Y.) 1096d, (N.C.) 1111b; draft taken in part payment (Miss.) 
686c. — duty to give notice of dishonor to parties secondarily liable (Ga.) 155a, (Ind.) 
262c, (La.) 379a, (Minn.) 642c, (Mo.) 704b, (N. Y.) 854b, 864a, 864d, 900b, 945c, (S. 
C.) 1259b, (Wis.) 1421d; even if collection bank be drawee (Neb.) 793b. —duty to 
give notice of dishonor either to all parties or to principal alone (Ky.) 343c, —duty 
to give notice of dishonor to principal alone (Ind.) 263a, (Kan.) 340b, (Mass.) 532c, 
(Mo.) 749a, (N. Y.) 875c, 932c, (N. C.) 1111b. —duty to give notice of dishonor of 
draft taken in payment, to all parties secondarily liable thereon (N. Y.) 1094a. 
— duty to inquire as to indorser's residence (S. D.) 1259b. — duty to make memorandum 
of maker's address, given by principal (N. Y.) 915c. — duty to hold bill of lading to 
secure payment of sight draft (Fla.) 137b, (Mich.) 631a, (Tenn.) 1311b; or acceptance 
of time draft (Fla.) 137b, (Tenn.) 1311b. —duty to know foreign law, if it under- 
takes collection of foreign bill (N. Y.) 870a. — duty to pay immediately, if collection 
bank be drawee (Neb.) 793b. 
to use care in general. See Negligence. 

to use care in making presentment is discharged by placing bill of exchange in hands of 
notary for demand and protest (Miss.) 667c. — is not discharged by placing promis- 
sory note in hands of notary (N. Y.) 945c. 
to use care in selecting agents is discharged by selection of notary employed in bank's 
own affairs (Pa.) 1178b. — is discharged, in case of bank acting without compensa- 
tion, by exercise of good faith in selection (N. C.) 1111a. 
to use diligence. See Diligence. 

to pay over or account to principal is discharged by giving credit to one to whom bank 
is authorized to pay (N. Y.) 939 b. — is discharged, as to drafts left subject to direc- 
tion of another, by crediting them to latter in accordance with his order (111.) 211c. 
to make presentment is not annulled by removal of maker from locality before maturity 
(La.) 377e. — does not operate to compel presentment through clearing house, after 
drawee's suspension, in absence of knowledge that drawee would temporarily reopen 
to pay paper so presented (Pa.) 1234b. 
to give notice of dishonor is not annulled by destruction of collection bank's place of 
business by fire, if bank thereafter undertook collection (Wis.) 1421d. 

Estoppel 

Collection bank is estopped to deny principal's title, (La.) 377c, in action against it for 
negligence (N. Y.) 903b. — to deny existence of corporation for which it has acted 
as agent (N. Y.) 1037c. — if it extends time without principal's consent, though ac- 
cording to custom, to take advantage of the delay to secure its own claim to prin- 
cipal's disadvantage (Neb.) 798a. 

Collection bank cannot prove in suit by drawee to recover amount paid on draft, that it 
was merely agent for collection (Ala.) 40a. — in suit by principal, non-payment, protest 
and return of drafts, without first producing or accounting for them (Mich.) 615a. 

Evidence 

Credit is conclusive evidence of intention of collection bank to change status to that of 
debtor (N. Y.) 1096c. 



INDEX 47 



COLLECTIONS— Continued 
Evidence (continued) 

Custom as to liability of collection bank is admissible (N. Y.) 866d. —not to disclose 
agency in making collection is inadmissible (N. Y.) 873d. 

Damage is shown prima facie in action for negligence, by proof that there was reasonable 
probability of collecting, had care been used (Neb.) 798a. — is not shown by proof 
that collection bank accepted another check for one protested (Ky.) 371a. —may be 
mitigated by' proof that maker of note was insolvent at maturity and until trial 
(Neb.) 771c; or that indorser is insolvent (N. Y.) 935c. 

Insolvency, such as will excuse failure to give notice of non-payment, is not shown by 
proof that indorsers were unable to meet all obligations at maturity (Neb.) 782b. 

Negligence is proved prima facie by showing actual failure to make demand (N. Y. ) 
945c. — ;«fli' be proved by foreign judgment, discharging drawer (N. Y.) 1003c. 

Opinion. Testimony that witness regarded all checks deposited by him as deposited 
for collection is inadmissible as expression of opinion (Md.) 513b. 

Presumption is that damage results when collection bank fails to give notice of non- 
acceptance (La.) 376f. — is that drawee bank, acting as collection agent, knew state 
of maker's account (Neb.) 793b. — is that money collected by agent is same as that 
paid over (111.) 205e. — is that, where subagent sends to transmitting bank an amount 
equal to amount of draft, transmitting bank holds proceeds (Neb.) 806a. — does not 
exist that payment by bank, on paper sent it for collection, is made by mistake (N. 
Y.) 987c. — does not exist that check sent to insolvent drawee would have been paid 
if presented by a third person (Neb.) 776d. 

Witness. Collecting agent is competent to testify to facts out of usual course of busi- 
ness, or to deny the effect of acts done as agent (Miss. ) 680c. 

Forgery 

Collection bank may waive effect of drawee's payment of forged check (N. Y.) 955d. — is 
not bona fide holder of forged certificate collected for customer, if latter's account 
is good for amount when paying bank makes demand (Md. ) 498c. — is liable to 
drawee for amount received on forged instrument, if not bona fide holder, (Md.) 498c, 
or if credit alone be given to principal (N. Y.) 1037b. — is not liable for amount 
received on forged instrument, if it has paid over to principal, (N. Y. ) 1034a, before 
notice of forgery (N. Y.) 1029a. — is not liable to principal for receiving forged bonds 
from persons accredited by principal (N. Y. ) 1082b. — is not liable for loss due to for- 
gery by person receiving draft properly forwarded by bank (Mo.) 752e. — acting for 
bona fide holder under owner's forged indorsement may be sued jointly and severally 
with principal by owner (N. Y.) 951a. 

Drawee may, before remitting proceeds, charge back on discovery of forgery (Ala.) 35a. 

Liability to return proceeds of forged check is not affected by delay in giving notice 
if no damage result (Ind.) 273c, (N. Y.) 1078b. 

See also Forged Instruments. 

Gamisliment 

Collection bank cannot, without special notice, be charged as garnishee of paper depos- 
ited by one other than debtor in garnishment proceedings (Colo.) 101c. — is not de- 
prived of right to sue on bill indorsed to it, because of garnishment of bill (Mo.) 701c. 

Subagent, holding proceeds of bill indorsed to it for collection, may be garnisheed by 
creditors of indorser (Ga.) 167c. 

Insolvency of collection bank 

operates to revoke authority as agent of owner (Mass.) 582a, (N. Y. ) 1052c. — to give 
drawer right to stop payment of draft (Miss.) 689b. — to render bank guilty of fraud 
in subsequently undertaking collections (N. Y.) 1016c. 
does not operate to render drawer stopping payment liable to collection bank's trans- 
feree "for collection" (Miss.) 689b. 

Liability of collection bank 

to prindpal includes liability for breach of duty (see Duty of Collection Bank ) ; for 
amount credited to it by correspondent (Neb.) 799b, (N. Y.) 1003a; for acts in excess 
of authority (Ky.) 371a, by extending time (Ohio) 1160b; for misapplication of proceeds 
(see Misapplication of Proceeds); for default of subagent (Ga.) 170b, (la.) 290a, 
(Kan.) 327c, (Mich.) 615a, (Minn.) 641c, (Mont.) 767c, (Neb.) 799b, (N. J.) 828c, 833a, 
(N.Y.) 870a, 895b, 903b, 1040c, (Tex.) 1336c, (cow^ra (111.) 227a, (la.) 307c, (Md.) 493b, 
if chosen by principal (Tenn.) 1311b, or by collection bank with care, (Ind.) 278c, (Mass.) 
537b, (Miss.) 688a, (Mo.) 710b, (Wis.) 1399b, in case of paper payable at a distant 
point (Mass.) 529d, (Neb.) 780a, or where subagent is required from nature of busi- 
ness (Mass.) 539e, (Ohio) 1157b) ; for notary's failure to charge indorser on note 
(Mo.) 704b, or to give notice of dishonor of note (La.) 377a, (N. Y.) 956d [contra, if 
notary be competent (La.) 391c, 404d], or of check (Neb.) 782b; for attorney's failure 
to make demand and give notice of dishonor of note, though attorney be notary (Kan.) 
317d. — does not include liability for notary's default, in charging indorser on note, 
where notary has given bond (La.) 388b, or acts within scope of official duty (Md.) 
501b, or in giving notice of dishonor of inland bill, where such notice is part of his 
official duty (la.) 307d; for negligence of others than its agents (Conn.) 112c; for 



48 BANKS AND BANKING 



COLLECTIONS— Continued 

Liability of collection bank (continued) 

interest on certificate of deposit which would have accrued by delay in collection 
(la.) 292e; for error in disputed questions of law (S. D.) 1283c. —is not affected by 
rights of third person (N. Y.) 1033c. 

to parties secondarily liable includes liability to reimburse them fbr money paid to take 
up paper, in ignorance of their release by bank's negligence (La.) 388a, (Md.) 503c, 
(N. Y.) 1090e. 

as holder. See Agent as party to paper. 

for forgery. See Forgery. 

for failure to collect may be enforced only if plaintiff shows claim was good and col- , 
lectible (Tenn.) 1312a. 

for failure to charge indorsers may be enforced without bringing useless suit against in- 
dorsers (Mass.) 531d, or exhausting remedy against all indorsers (La.) 377c. — may 
not be enforced without proof that maker is insolvent (Ala.) lib. —is personal and 
period of prescription is 10 years (La.) 430a. — is not discharged by principal's fail- 
ure to take advantage of composition agreement of bankrupt maker, though such 
failure may mitigate damages (Ind.) 263a. 

for subagenVs default is not discharged by latter's insolvency (N. Y.) 1040c. 

to account for proceeds. See Misapplication of Proceeds. 

Liability of subagent 

Subageni is liable to owner (Ind.) 265c, (Pa.) 1235c; though it has credited transmit- 
ting bank (N. Y.) 885a; unless it has actually remitted to transmitting bank before 
notice of latter's insolvency (N. C.) 1123b, 1123c. — to transmitting bank, not to 
owner (N. Y.) 895b. Contra if transmitting bank has power to appoint subagent, 
even though former has paid owner (Tenn.) 1299d. 

Measure of damages 

for release of parties secondarily liable is face value of paper (N. Y.) 935c; prima facie 
(N. C.) 1111b, (Wis.) 1421d; if actual loss equal that amount (N. Y.) 995b; if maker 
be insolvent (Ohio) 1131d ; with interest (N. Y.) 881a, and protest fees (N. Y.) 1096d. 
— is whatever damage is actually sustained (Ind.) 262c. 

for failure to use diligence is face value of paper with interest (Utah) 1342b. — is face 
value of paper, only if loss be entirely due to bank's laches (Mo.) 741a. 

for exceeding authority is actual loss (Ky.) 371a, (Ohio) 1160b. 

for failure to notify principal of dishonor is face value of paper (N. D.) 1129d. 

Nominal damages alone can be recovered where one party has been charged, unless that 
party be insolvent (N. Y.) 987b. —for delay in giving notice to principal, unless sub- 
stantial damage be proved (la.) 293b. 

Interest cannot be recovered in action for negligence, if bank could receive no pecuniary 
benefit (Mo.) 755c. 

Misapplication of proceeds 

operates to render collection bank liable as for money held in trust (Colo.) 107b; or to 

pay amount in lawful currency, unless authorized to collect in other funds (La.) 427b. 

— to permit principal to follow proceeds into hands of one charged with notice of 

agency (Neb.) 796d. 
does not operate to prevent innocent payee of proceeds from acquiring title (N. Y.) lOlOd. 
by mingling proceeds with bank's property gives principal lien on entire fund (Mich.) 

620a. See also Bailment, Creditor and Debtor, and Trust Fund. 

Negligence 

Collection bank is negligent in forwarding paper by circuitous route (Ala.) 38b; so as to 
cause unreasonable delay (Neb.) 807c. — m failing to present check for five days (Neb.) 
783a. — 2« taking acceptance instead of payment from drawee and holding paper for a 
long period without collection (Utah) 1342b. — in failing to notify principal of dis- 
honor (Mo.) 741a; even though collection bank be drawee of check (Mo.) 749a. — in 
failing to give notice of dishonor for four days (Neb.) 782b. — in failing duly to pro- 
test bill (Ga.) 155a. — in selecting agent with known adverse interest to principal 
(111.) 211a. —in selecting drawee as agent (Kan.) 325a, (Minn.) 661c, (Neb.) 793b, 
(Pa.) 1218d, 1225b, 1235c \^contra, if m accordance with prevailing custom (Ore.) 
1169c] ; even though it be the only bank in the place and the selection be customary 
(Mo.) 753a. — in sending certificate of deposit direct to debtor bank (Colo.) 102a. 
Contra if it be the only bank in the place and collection bank be instructed to collect 
at best rate of exchange (Mich.) 632b. — in failing to make memorandum of maker's 
address given by principal (N. Y.) 945c. — in failing to inquire as to paper forwarded 
for collection but not acknowledged (La.) 385f. 

Collection bank is not negligent where failure to collect is due to legal proceedings (Cal.) 
86c. — in the selection of a notary, because there is vague evidence of notary's bad 
habits (Miss.) 675c. — in employing subagent for collection at a distance (III.) 244b, 
— in presenting post note, according to usage, without allowance for grace (Mass.) 
531 d. — in protesting certificate of deposit, according to usage, without allowance for 
grace (la.) 289b. — m giving notice of dishonor to person of same name as indorser, 
where indorser's address was not given (la.) 287d. — «'« permitting drawee to examine 



INDEX 49. 



COLLECTIONS— Continued 
Negligence (continued) 

contents of package which collection bank is authorized to deliver only on payment of' 
draft (Mass.) 590d. 

Negligence of collection bank is chargeable to holder (N. Y.) 995b. — in collecting substi- 
tuted check prevents payee from recovering on original (Md.) 513c. — in failing to 
notify some of the indorsers entitles holder to demand payment of the bank on trans- 
fer to it of the notes and his rights therein (La.) 379a. — in sending paper direct to 
drawee, does not discharge drawer, who knew drawee was insolvent (Neb.) 776d. 

Duty to use care. See Duty of Collection bank. 

Liability for negligence. See Liability of Collection Bank. 

Payment by agent 

to principal is eifected by entering bill as paid and mailing draft for amount (Wis.) 
1419a. — is effected, so as to discharge accommodation indorsers, in the case of note 
indorsed by collection bank, by credit on books when in funds (Tenn.) 1305b. — is at 
bank's risk if it has notice of lien on paper (Pa.) 1201c. 

Payment to agent 

is not effected by its surrender of draft for check not accepted in payment (Tex.) 1331b. 

operates as payment to principal (W. Va.) 1389c. — though accomplished by clearance with 
another bank (Kan.) 340a. — though accomplished by acceptance of certificate of' 
deposit according to custom (la.) 291b. —though accomplished by transfer on books,, 
according to custom, maker having authorized payment out of his deposit with collec- 
tion bank (Ark.) 58b. 

does not operate as payment to principal where collection bank takes less than full amount 
without authority (Mass.) 596c. 

Pleading — see Pleading 

Preference 

exists in favor of owner of collection paper (la.) 305a, (Neb.) 806a; even if he deposited) 
as general or special attorney (Neb.) 806a; if collection bank mingled proceeds with 
other funds, but has on hand at insolvency amount equal to proceeds (Tex.) 1326a. 

does not exist in favor of owner of collection paper, if collection was made before insol- 
vency (Tenn.) 1313a; or if mingled with general assets (N. C.) 1120b, 1120c, 1120d;, 
or if bank's assets were not actually increased by proceeds (Mo.) 759c, even though 
bank made payment by drafts on another bank in which it had no funds (Ind.) 275c;. 
or if proceeds cannot be traced into receiver's hands (S. C.) 1273b, (Wis.) 1418a. — in 
favor of payee of uncollected draft issued to represent checks received for collection but 
not collected (Mich.) 627b. — in favor of mutual collecting agents, on their running 
accounts (N. Y.) 1009a. 

Questions of law and fact 

Questions for jury include ■ns.^x^e.r^tx. oi coVi(tcth.o^ bank (Tex.) 1333c. — neglect oi\i3jak.to. 
inquire as to indorser's residence (S. C. ) 1259b. — loss due to negligence in failing to. 
collect (Mo.) 741a. — ratification by principal of bank's failure to protest (Va.) 1378b. 
— allowance of overdrafts on credit of paper deposited for collection (111.) 244c. 

Ratification 

of choice of drawee as subagent is effected by instruction to hold draft, given by principal 

after knowledge of facts (Pa.) 1225b. 
of appointment of subagent as agent of principal is not prevented by subagent's crediting 

proceeds on debt due from transmitting bank (Mo.) 729a. 
of delay is effected by silence of principal after knowledge of facts (N. Y.) 1048b. 
of obtaining acceptance of sight draft is not effected by paying protest fees (la.) 289a. 
of acceptance of confederate money in payment is not effected by suit by principal for- 

money received and appropriated by collection bank (La.) 427b. 

Setoff 

Collection bank cannot set off deposit in another bank against collection made for com-, 
missioners of latter bank after forfeiture of its charter (La. ) [404c. 

Subagent's right to proceeds 

Subagent is entitled to lien on proceeds for balance due from transmitting bank (Okla.) 
1166a; if the two banks have mutual dealings by which they credit each other with 
proceeds (Ind.) 251a; if real owner allows collection bank to hold itself out as principal' 
(Ind.) 251a. — to retain in settlement of transmitting bank's account' the amount 
credited before notice of true ownership (W. Va.) 1396a. 

Subagent is not entitled, as against owner, to hold proceeds (Neb.) 793d. — unless it is. 
bona fide holder (Pa.) 12d5c; even though ii; has credited transmitting bank, which 
owed it a balance (Mo.) 729a. —unless it is bona fide holder, or an existing indebted- 
ness is due it from transmitting bank (Okla.) 1166a. — of bill indorsed for collection, 
for balance due from sender who was not indorser (Md.) 503a. —for debt of trans- 
mitting bank (N. Y.) 890b, 1019c, (N. D.) 1128b, (Pa.) 1220d; on latter's insolvency 
(N. C.) 1119b; though paper be duly indorsed (Pa.) 1193b; if paper be indorsed for- 
collection both by owner and by transmitting bank (Tex.) 1324b. —even though it. 



50 BANKS AND BANKING 



COLLECTIONS— Continued 

Subagent's right to proceeds (continued) 

has credited transmitting bank (Neb.) 793d, (N. Y.) 886a, on existing indebtedness 
(Mo.) 703d. —unless it has given new credit on strength of paper, (N. Y.) 942b, 950c, 
indorsed for collection (Md.) 504b. — even though it refrains from collecting balance 
from transmitting bank (N. Y.) 942d, 947b. — even though it makes further advances 
after receipt of paper (N. Y.) 947b. 

Termination of agency 

is effected by return of paper to principal (Mo.) 715b. — djv insolvency of collection bank 
(Mass.) 582a, (N. Y.) 1052c. —by collection (Ky.) 366c, (Mo.) 759c, (N. C.) 1120b, 
(Tex.) 1322a, (Wash.) 1387b. Contra (la.) 296a. —by collection and credit (111.) 
244c; where principal has drawn against proceeds (La.) 444d. — by credit, after sub- 
agent's acceptance of draft in payment (N. Y.) 1075a. —by collection bank using 
proceeds of collection (La.) 427b. 

is not effected by collection bank mailing its own draft to principal (Wyo.) 1429c. 

'Title to paper 

passes by indorsement "for deposit" (Minn.) 644b. — by indorsement "for collection and 
credit" under arrangement whereby check is treated as cash (Mo.) 745c. 

does not pass to collection agent (La.) 444a, (N. Y.) 1029a, 1031a, 1078b, (S. D.) 
1277e; even though indorsement be unrestricted (Minn.) 643b. Contra (Mich.) 613e. 
—dy indorsement for collection (Ga.) 163d, 167c, (Ind.) 265c, (Pa.) 1220d; to assignee 
of insolvent collection bank (N. Y.) 1030b; as against real owner, though he has in- 
dorsed without restriction to forwarder (N. Y.) 927a; except so far as to enable in- 
dorsee to demand and enforce payment (Neb.) 793d. — by indorsement for account, 
with letter directing collection and credit (Neb.) 799d. — by credit, under indorsement 
for collection and credit, in accordance with agreement allowing charging back on 
dishonor (N. Y.) 1052c. — by provisional credit by collection bank (Minn.) 660b. 

is presumed to be in payee (W. Va.) 1396a. 

indorsed for collection cannot be determined by ex parte court order (N. Y.) 1030b. 

Collection bank acquires such title alone as its forwarder has (N. Y.) 956c, 1049c; unless 
it becomes bona fide holder (N. Y.) 947b. 

Indorsement for collection is notice, oi title in indorser (Md.) 503a, (N. C.) 1123b, 1123c, 
(Ohio) 1162d. 

Indorsement for collection and credit is notice of title in indorser (N. Y.) 1052c. 

Indorsetnent for collection and remittance is notice of ownership (N. C.) 1122c. 

Indorsement for collection for account oi K -prevents -pSiSsing oi title to others (Md.) 512c. 

Title to proceeds 

is in real owner (Cal.) 81a. — whatever may be their form (N. D.) 1128b. — though 
they be in form of debt from subagent to transmitting bank (N. D.) 1128b. — though 
they be in the form of proceeds of new note received by subagent in exchange for 
original (Pa.) 1220d. — as against collection bank or correspondent (N. Y.) 1092a. 
— as against receiver of collection bank (Neb.) 781c, (Wyo.) 1429c. 

does not pass by inAoxsement of paper for collection (Ind.) 265c. — by credit to insol- 
vent collecting bank (Mass.) 582a. 
, Owner may claim proceeds in hands of subagent upon insolvency of transmitting bank 
(N. C. ) 1122c. — does not waive rights by accepting draft under false representations 
(Mich.) 620a. — is proper plaintiff in suit for proceeds (N. Y.) 1019c. — may hold 
one taking proceeds with knowledge of his claim (Mo.) 739a. — wza.f^ proceed against 
those into whose hands proceeds are traced, not against general assets in receiver's 
hands (Wis.) 1418a. 

Assignee of collection bank has no better title than had the bank (N. Y.) 1030b. 

Receiver of collection bank has no better title than had the bank (N. Y.) 1018d. 

'Trover 

does not lie against bank for notes forwarded for collection but not in its possession at 
time of demand (Wis.) 1411a. 

■Trust ftind 

is not created upon collection (Ind.) 279c; and credit, if owner has drawn against credit 
(La.) 444d. —6j/ mingling of proceeds with bank's general funds (Wash.) 1383a. —as 
to maker's deposit with collection bank, by bank's failure to apply it to payment of 
note (Mich.) 617b. — upon insolvency of collection bank, after collection (Tenn.) 1314c, 
or where maker has made payment "by his check on collection bank (Miss.) 691d. 
.does not pass to assignee as part of collection bank's assets (Neb.) 780d. — to receiver 
of collection bank (Neb. ) 781c, 788c. 

■may be recovered from receiver of collection bank (Kan.) 340a, (N. Y.) 1058c; only if 
actually traced into his hands (Kan.) 338d, (N. Y.) 1037a. —from assignee of collection 
bank (la.) 296a, (Mo.) 750b. —though mingled with other funds (Mo.) 750b, (N. 
Y.) 1092a; if bank has funds on hand equal to amount collected (Tex.) 1326a. 

Proceeds are a trust fund if collected by bank (la.) 296a, (Kan.) 340a, (Mo.) 750b, 
(Neb.) 780d, 781c, 788c, (N. Y.) 1092a, (S. C.) 1273b, (Tex.) 1326a; in case of 
collection on mortgage (Mich.) 622c; in case where collection bank was insolvent 
when it received the paper (N. Y.) 1036a; in case where proceeds are on hand at time 



INDEX 51 

COLLECTIONS— Continued 
Trust fund (continued) 

of bank's failure (N. Y.) 1058c. — if collected by receiver of collection bank (Mont.) 
769d, (Ohio) 1160d, (Tenn.) 1316d. 
Proceeds are not trust fund if collected by bank (Wash.) 1387b; where there were no 
instructions to keep proceeds separate (Mich.) 6i4b; where bank collected for regular 
customer (N. Y. ) 1047b ; where credit was given under agreement to treat paper as cash 
(Mo.) 726d; in case of collection before bank's failure (Tenn.) 1316b, 1317b. —if 
credited by subagent to transmitting bank before latter's failure (Tenn.) 1317a. 
Cestui que trust, who accepts dividends from receiver of collection bank, may rescind 
implied contract, thus created, by returning dividends (N. Y.) 1036a. — may establish 
trust in equity without presenting claim to bank's assignee, where bank failed immedi- 
ately after collection (Mo.) 747d. — can establish trust only by showing manner of 
conversion and that proceeds came into assignee's hands (Kan.) 317b. 
Cash assets atnounting to less than unpaid collections must be distributed pro rata 
among cestuis que trustent, to exclusion of general creditors (S. D.) 1284a. 

TTltra vires 

agreement to collect in depreciated paper creates no liability in bank to pay principal in 
specie (Mo.) 697c. 

COMMISSIOlHrERS 

(See Public Officers) 

COMPTROL,L,BB OF CUBREXCY 

(See Public Officers) 

CONSOHDATION OF BANKS 

(See Banks) 

CONSTITIJTIOJVAL, l.AW^ 

Acts of Congress 

Constitutional. Act of 1789, giving state courts concurrent jurisdiction in cases under 
banking act (Ohio) 1155a. — creating United States Bank (Conn.) 109a. — of 
February 25, 1862, making United States treasury notes legal tender (Ind.) 256c, 
(N. Y.) 929I3, 932a. — offune j, 1864., protecting national bank against suits in 
state courts (Md.) 507a. — of fune 3, 1864, prohibiting or limiting taxation of 
national banks (Mass.) 549b, (N. Y.) 935b, (Pa.) 1197a. —of 1874, prohibiting 
issue of attachments by state courts before final judgment (N. Y.) 979a. 

!BiIls for revenue 

Act of June 3, 1864, National Bank Act, is not a, bill for revenue (D. C.) 133a. 

Charter 

is a contract within meaning of United States Constitution (Miss.) 671b. 
reserving right to repeal, act repealing charter is valid (Mass.) 529e. 
providing that bank's notes were payment of taxes, does not invalidate an act making 

other money the medium for payment of taxes (S. C.) 1264a, 1264c. 
Act o/" /<?^9 imposing personal liability on stockholders is constitutional (N. Y.) 921b. 
See also Obligation of Contract. 
Provisions are constitutional providing for judgment on notice and motion (N. C.) 

1102b. — allowing interest at greater rate than that allowed by general law (Tenn.) 

1288d. —providing for joinder of drawers, indorsers and acceptors, though power 

is not recited in title (Ga.) 152c. — making capital stock liable for state and county 

but not for municipal taxes (Ind.) 251e. 
Provisions are unconstitutional permitting issue of bills of credit (Mo.) 695a, 695b. 

— authorizing contract to deposit city funds (Cal.) 74a. —exempting stockholders 

from liability for debts (Cal.) 82b. 

Courts 

of state follow ruling of United States Supreme Court on a state law (Ohio) 1144b. 
will not determine validity of bank currency after years of existence (Ohio) 1136b. 

Due Process of Law 

Opportunity to be heard before referee, is due process of law (N. Y.) 915a. 

Xegislative Acts 

authorizing issue of notes by state bank does not make them bills of credit under 

United States Constitution (Ala.) lie, (Ark.) 42b. 
not properly passed does not affect original charter (Miss.) 665e. 
passed with stockholders' consent cannot be questioned by them (Ky.) 345d. 
Banking Act of 1838 does not make companies thereunder corporations (N. Y.) 871a. 



52 BANKS AND BANKING 



CONSTITUTIONAL LAW— Continued 

Legislative Acts (continued) 

License Tax, Act 0/1874, was not a tax for general revenue (Pa.) 1231a. 

Chartering bank to issue bills of credit is valid (Tenn.) 1285d. 

Constitutional: Act to regulate state bank's affairs (Ark.) 49e. Change of stockholder's 
liability (Cal.) 82b. Issue of cotton and treasury notes for a state loan not bill's of 
credit (Miss.) 686a. Disallowing defense of director's ignorance of bank's financial 
condition in any suit (Okla.) 1165c. Act, making original stockholders liable for sub- 
scriptions (Tenn.) 1303c. Act not impairing bank's utility as federal agency (Vt.) 
1365b. Act creating State Board of Equalization (Cal.) 64d. Act extending corpo^ra- 
tion for purpose of suit after expiration of charter (Mass.) 520c. 

Unconstitutional: Repealing charter, providing state would take state bank's notes- as 
legal tender (Ark.) 50c. Allowing payment of its notes in any notes of other banks 
(N. C.) 1106c. Special charters exempting bank's officers from police power of state, 
violating Constitution of 1875, art. 12, sec. 27 (Mo.) 714b. Provisions of Banking 
Act of 1845, conflicting with subsequently enacted constitution (Ohio) 1144d. Act of 
March 10, 1891, sec. 27, prohibiting banking except on conditions (S. D.) 1275c. 

Obligation of Contract 

Bank charter cannot be impaired by subsequent legislation (Ala.) la, 2a; nor by right to 
share in assets (Kan.) 339b. 

What constitutes : Right of creditor to share in assets of private bank of debtor (Kan.) 
339b. Act imposing special tax and its acceptance (Ky.) 370b. Act declaring capital! 
stock of banks taxable at same rate as personal property (La.) 423b. Act exempting 
bank from license fee (La.) 432a. 

Constitutional Acts: Reducing legal rate of interest (Ind.) 250b. Fixing rate of interest, 
where charter fixes no rate (Ohio) 1137c. Exercise of court's power to discharge surety 
and substitute another (Tenn.) 1285d. Repeal of provision that bank notes shall be- 
received for debts due state (Ark.) 46d. 

Unconstitutional Acts: Constitutional provision fixing rate of tax where charter ex- 
empted (La.) 417a, 443b. Repeal of charter for failure to pay specie in absence of 
repealing clause in charter (Mich.) 600a. Imposing additional tax, where charter fixes- 
franchise tax on capital stock (N. C.) 1106g, (Ohio) 1134d, 1144b, 1144c, (Tenn.), 
1285a. 

Particular Acts 

Alabama, Dec. 12, 1892, 36b, Invalid. 

Arkansas, Jan. 10, 1845, 46d; Dec. 23, 1846, 49e, Valid. 

California, Mch. 30, 1878, VaHd, 78c; Apr. 1, 1862, sec. 27, 82b, Invalid. 

Georgia, code, sees. 2388-2391, 165c; sec. 3354, 175d, Valid. 

Illinois, Act of 1835, 181d; Feb. 14, 1857, 185d; June 16, 1887, 217a, Valid. 

Indiana, Mch. 1, 1867, 259b, 260a; Mch. 4, 1873, 260c; Mch. 9, 1891, 275a, Valid. 

Iowa, Laws of 1880, ch. 109, 292a, Valid. 

Kansas, City Act, sec. 87, 321c; Bank Law of 1891, 324d; Act of 1897, 339c, Valid. 

Kentucky, Feb. 10, 1820, 347d, Valid. 

Louisiana, Feb. 22, 1840, 403b; Mch. 14 & 26, 1842, 401d; Apr. 5, 1843, 411b; Act o£ 

1871, sec. 28, 444b, Vahd. Mch. 25, 1857, 426d, Invalid. 
Maine, Mch. 18, 1842, ch. 32; Mch. 16, 1855, 471d, 464c, Valid. 
Maryland, Act of 1817, sec. 4, ch. 148, 498d, Valid. 
Massachusetts, Act of 1809, ch. 37, sec. 1, 516b; Act of 1838, ch. 14, o27d; Stat, of I860,. 

ch. 167, 545b; Stat, of 1862, ch. 224, sec. 4, 547c; Stat, of 1878, ch. 261, 565c, Valid. 
Michigan, Banking Law of 1887, 619d, VaUd; Tax Law of 1867, 606a, Invalid. 
Minnesota, Laws of 1895, ch. 145, 655b, Valid; Act of 1885, ch. 155, 657c, Invalid. 
Mississippi, Act of 1843, Sheet Act, p. 52, 671b; Mch. 8, 1888, 689d, 690b; Feb. 24,. 

1890, 690b, Valid. Act of 1840 not repealed by Act of 1857, 686b. 
Missouri, Act of 1856, sec. 32, art. 1, 721c; Feb. 15, 1864, 706e; R. S. 1889, sec. 3581,, 

749b, Valid. 
Nebraska, Laws of 1891, ch. 50, 784a; Comp. Stat., ch. 8, sec. 35, 794c, Invalid. 
New Jersey, Act of 1866, sees. 16, 17, 831b; Apr. 27, 1888, 842a, Invalid. 
New York, Banking Act of 1838, 869d, 871a, 883b, Valid. Contra 882c. Act of 1849,. 

ch. 226, 915a, Valid. Laws of 1865, ch. 97, sec. 10. 958b, Invalid. 
Ohio, Banking Act of 1845, 1139c, 1146c; Mch. 21, 1851, 1145b; Apr. 4, 1861, 1151d,. 

Valid. Sec. 2759, R. S., 1159c, Invalid. 
Pennsylvania, Apr. 1, 1835, 1185c; Tax Act of 1891, 1235d, Valid. 
South Carolina, 19 Stat. 212, sec. 4, R. S. 1539, 1272b, Valid. 
South Dakota, Banking Act of Mch. 10, 1891, 1275c, InvaUd. 
Tennessee, Revenue Act of 1895, 1319b, Valid. 

Virginia, Jan. 23, 1896, p. 170, 1380d, Valid; Mch. 5, 1864, 1373c, Invalid. 
Wisconsin, R. S. sec. 4541, 1409b, 1418b; Act of 1865," ch. 400, 1407b; Laws of 1895,, 

ch. 160, 1424d, VaHd. Laws of 1855, ch. 47, sec. 6, 1402b, 1404c, Invalid. 

Special legislation 

Act applying to cities of certain population, is unconstitutional (111.) 217a. 

Act making acts of ofiicers of one bank a felony is unconstitutional (Temx..), 12S7a.. 



INDEX 53 



CONSTITUTIONAL LAW— Continued 
State banks 

cannot give sealed note in consideration for bills of credit (111.) ISOd. 

Notes issued by authority of legislature are valid under U. S. Constitution (Ala.) lie. 

Branch may discount notes (Ark.) 45c. 

State Constitution 

General Provisions providing party ''may be sued," is not mandatory (Cal.) 73a. 
—giving supreme court jurisdiction of actions by or against state, includes applica- 
tion by state for a receiver (Neb.) 779d. — that bank can hold laud only for five 
years, is not self executing (Cal.) 99b. — compelling witness' attendance does not 
apply to witness out of state (la.) 300a. —forbidding taking private property with- 
out just compensation, does not prevent forfeiture of charter (Ind.) 246a. — limiting 
power to issue bills does not apply to notes issued by individuals for circulation (Ind.) 
257e. — alone can exempt bank property from taxation (La.) 435c, or forbid double 
taxation (Wash.) 1388a. — repeal all conflicting statutes (La.) 436a. — making di- 
rectors liable where insolvent bank receives deposits, not self-enforcing (Mo.) 718b. 
— require no supplementary legislation to enforce provision making stockholders liable 
(Neb.) 791e. — may change stockholder's liability under power to alter and amend 
(N. Y.) 1087a. — making all property taxable according to value determined as 
directed by legislature, is not self-executing (Tenn.) 1319b. 

Paiticular Provisions of 1865, Art. 4, sees. 34, 35, require evidence of value of currency 
in which loan was made to be confined to date of loan (Fla.) 135a. — sec. 9, art. 8, 
applies only to state banks (la.) 291a. — allow only state or private bank to be 
created under general banking law (Ind.) 252c. — art. 13, not applicable to savings 
banks (Kan.) 314b. — of 1868, repealed all conflicting acts (La.) 436a, made sub- 
sequently granted charters subject to legislative control (La.) 436c; did not permit 
exemption from license tax (La.) 442e. — sec. 27, art. 12, make officers of a bank 
criminally liable for receiving deposits knowing of insolvency (Mo.) 714b. — of 1821 
not part of contract between state and bank organized under Act of 1834, ch. 361 
(N. Y.) 923a. —of 1851 are prospective (Ohio) 1145b. —sec. 7, art. 13, do not 
apply to corporations exercising banking powers exclusive of power to issue circulating 
money (Ohio) 1157c. —forbidding any company to issue circulating paper, do not 
forbid organization of bank to do general business (Ore.) 1167a. — do not prohibit 
change of name by special act (Tenn.) 1309b. — continued existence of corporations 
existing in Virginia prior to the division (W. Va.) 1389d, 1393b. —are not violated by 
applying usury law to a contract made by bank contrary to its charter (Wis.) 1402c. 
— do not prohibit legislature from making cities preferred creditors (Wis.) 1425d. — do 
not create preference, by providing that obligation to state can be released only by 
actual payment, but prevent dividend from being a release of unpaid balance (Wyo.) 
1430a. — sec. 3, art. 8, gives county court appellate jurisdiction in all controversies 
exceeding $100 (W. Va.) 1396c. —sees 4, 5, art. 11, reserves to people, legislative 
control of banks (Wis.) 1398d, 1402b. Sec. 5, art. 10, Constitution of 1848, does not 
include trust companies (111.) 200c. Loan and discount associations are not banks 
within constitution of 1849 (Cal.) 180a. Nothing in constitution against preventing 
continuance of bank charter (111.) 181e. Membership of state secretary and treasurer 
on board of currency does not violate (La.) 411b. Intention to defeat recovery by 
innocent holders of bills in Constitution of 1868 is invalid (Ga.) 157b, 

Taxation 

Constitutional. License tax (Cal.) 73b; (Mont.) 769b, if it is the same- on each member 
of a class (La.) 450b. Under city charter providing for taxation for city purposes 
(Cal.) 76c; (Mo.) 701b. Of state bank stock to bank and national bank stock to 
holders (la.) 299c. Congress may authorize a state tax on national banks (Ohio) 
1151d. Of property of bank and shares of stock (111.) 199d. Of national bank shares 
at bank's location (111.) 195b, 199d; (N. C.) 1115d. Of private property by a bank 
does not affect city's power to tax (Md.) 498d. Voted before but not assessed until 
after starting business (N. Y.) 865a. Act of 1843, providing for commitment for non- 
payment of tax on bank shares (N. Y.) 1021a. Of private bankers (Ohio) 1143a. 
Though unequal by stock fluctuations (Pa.) 1235d. If all persons are taxed at same 
rate on same thing, and object is same by whomever owned (Tex.) 1332a. Of capital 
of state banks after deducting realty and untaxable bonds, is constitutional (Ohio) 
1163b. 

Unconstitutional. Act making payment of fine for receiving deposits when insolvent, if 
made before conviction, a defense (Ala.) 36b. Exempting stocks and bonds (Cal.) 97b. 
Act imposing tax on national bank presidents (Ga.) 175a. Of bank for realty and 
stockholders for shares (la.) 296b. Discriminating against non-residents (Vt.) 1363e 
Of bank stock without deducting shareholders' debts from value (Wash.) 1386a. 

CONTRACTS 

Alteration 

tuithout acceptance does not make party liable (la.) 293d. 

by passing by-law without depositor's consent does not affect original (Mass.) 576b. 

by securing additional collaterals does not change contract (Tex.) 1324a. 



54 BANKS AND BANKING 



CONTRACTS— Continued 
Consideration 

What constitutes: Extension of time (Ark.) 52b. Preexisting debt for collateral security 
(Colo.) 104c, (Conn.) 124c; but not for accommodation note (Ark.) 56b. Checks 
for checks (Me.) 472a. Deposit for agreement to apply to particular purpose (Ind.) 
261b. Surrender of original accommodation note for renewal (Me.) 484c. Promise 
to pay checks to amount of deposit (Md.) 513b. Promise to pay for bank stock 
illegally sold (Mass.) 532d; contra (Yt.) 1358d. 

What does not constitute: Fraudulently issued note (Ga.) 176c, (Mass.) 541d. Sealed 
note for bill of credit of state bank (111.) 180d. Total fraud in consideration or in 
manner of obtaining note renders it void (Conn.) 108b. Loan of notes forbidden by 
constitution (Ky.) 344b. Worthless bank bills (Me.) 462c. A false bank statement 
(Me.)- 475a. Lack of interest in note (Me.) 465c. Illegal default (Me.) 474d, 486c. 

Presumption of consideration arises in assignment under seal (Fla.) 134b. 

Promise to pay out of future dividends (Mich.) 627d. 

Construction 

Contract to purchase notes is to purchase at face value (la.) 308b. 

Cashier's contract to give whole time does not include outside earnings (N. D.) 1128d. 

Illegal contract is void (Me.) 488c; contra (Md.) 506a. 

Liability not increased by agreement to pay in gold or silver (D. C.) 130b. 

Seal shows prima facie that amount secured was justly due (Fla.) 134b. 

Promise of performance is implied where law imposes obligation (N. Y.) 909b. 

No privity between payer and drawee sending draft, which is lost (111.) 203a. 

Corporation 

In the absence of statutory authority a contract must be under seal and the remedy, if 
not under Seal, is against the individuals attempting to contract (Ky.) 342a. 

Illegal 

Consideration recoverable unless vendee was in pari delicto (Me.) 465a, (Pa.) 1200a. 
Cannot be enforced (Ala.) 12c, (N. Y.) 912b. 

Lex loci 

governs (Conn.) 112d, 113c, (D. C.) 131a, (Ky.) 357b, (La.) 396a, (Mo.) 704a, 
(N. Y.) 989d; but as to check, law of place of payment governs (III.) 208d, 219b. 

Parties 

to illegal discount cannot recover proceeds of collateral given (Mass.) 539c. 
Deposit by trustee, who is cashier, is between beneficiary and bank (Me.) 477a. 
Bank is liable to third party who agrees to let cashier collect and apply proceeds of 
debtor's claims to debt due the bank (Mich.) 615c. 

CORPORATIONS 

Bankiog Powers 

must be specifically granted or necessarily incident (Ala.) 2a; otherwise the corporation 
cannot issue certificates of deposit for a loan (N. Y.) 895a. 

Books 

must be open for the inspection of each director even though he be hostile (N. Y.) 
865a; and of every stockholder (Mo.) 740d; but not of attorney-general save under 
order of court (Cal.) 70a; and of executrix of deceased stockholder notwithstanding a 
by-law to the contrary (La. ) 455a. The right is enforceable by mandamus (N. Y. ) 865a ; 
contra, where neither a right nor a reasonable purpose is shown (La.) 390b. 

Certificate of Incorporation 

must be filed to make a de facto bank and relieve organizers of liability as partners 
(Kan.) 327a. 

Change of Name 

if unauthorized, does not affect corporate existence (Minn.) 660c. 

Legal name of petitioning company must be compared with that of objecting com- 
pany (N. Y.) 1056a. 

Citizenship 

A corporation is a citizen of the state creating it (W. Va.) 1392c. 

Charter 

giving banking powers not annulled by declaring corporation not a bank (111.) 215b. 

Contract 

is void for noncompliance with incorporating statute (Ohio) 1151c. 
Corporate Existence 

is adinitted by suing corporation as such (N. Y.) 961a. — by plea of general issue in 
suit by bank (Mich.) 608b. —by plaintiff's dealing with defendant bank as a cor- 
poration (Cal.) 89a. 



INDEX 55 



CORPORATIONS— Continued 

Corporate Existence (continued) 

is not put in issue by denial of information (Minn.) 636b. 
cannot be raised by plea of general issue (Conn.) 117a. 

De Facto— see Bank 

Definition 

Associations formed under the General Banking Statute of 1838 are corporations (N. Y.) 

869d, 874a, 882c, 884c. 
Banker, under the general banking law, is not a corporation (N. Y.) 917d. 
"Debtor" includes corporation under the Civil Code, sec. 3432 (Cal.) 93c. 
"Inhabitant" includes corporation (N. Y.) 864b. 

Dissolution 

After entry of judgment of dissolution, corporation without life or property (Ind.) 246a.. 
Illegal expulsion of president is no ground for dissolution (R. I.) 1255c. 
; Corporate existence continues after liquidation for collection of debts (La.) 418e. 

Evidence 

Plaintiff bank need not prove that it is a corporation (Md. ) 492c. 

Execution of certificate, user of corporate powers and dealings by defendant with plaintiff 

as a corporation, prima facie proof of incorporation (N. Y.) 922b, 928a. 
General evidence of incorporation is sufficient in proceedings for forgery (N. Y.) 1011a. 
Certificate of intention to commence business is not evidence of incorporation; nor is. 

parol testimony that one established a bank under such a certificate (N. Y.) 920b. 

Foreign 

banking corporation must comply with local laws (Cal.) 76a. 

National bank in another state a foreign corporation, under code, sec. 277 (N. Y.) 940c. 

Contracts are tested by the lex loci (La.) 1396a. 

May sue on contract made in foreign state (Va. ) 1367c. 

Subject to the Statute of Limitations of 1844 (Ark.) 50a. 

Agenfs affidavit to foreign bank's statement must aver correctness (Cal.) 76a. 

Corporate capacity must be proved under the general issue (Ohio) 1137d. 

Franchise 

The right to exercise banking powers is a franchise (Ala.) 2a. 
Non-user of franchise does not work dissolution (Minn.) 660c. 

Joint Stock Associations 

For associations organized under particular laws, see Statutes, Construction. 
For liability of stockholder see Stockholders, Liability. 

Names 

similar, may be differentiated by adding "of Kansas City'' to one (Mass.) 584a. 

Officers and Agents 

bind corporations by their acts (N. Y.) 993b. 

President's and secretaty's knowledge binding on corporation (S. D.) 1274d. — signa- 
tures Site prima facie evidence of the proper execution of a note (N. Y.) 969c. 

President of non-banking corporation may pledge its notes to secure loan (N. Y.) 1005d. 
— cannot, as against creditors, deed land to secure his debt to one not a bona fide 
grantee (Mo.) 759a. — cannot, by check, cause corporation's deposits to be applied to 
his individual debts (N. Y.) 1094b. 

Treasurer, though authorized to hold note as collateral, cannot indorse to himself (N. D.) 
1127c. —viay negotiate notes (Conn.) 124b. 

Sale of note by secretary, .in accordance with custom, binds corporation (Neb.) 783c. 

Manager, receiving and paying out money, can indorse checks (N. Y.) 1037c. 

Telegraph companies liable for fictitious telegram sent bv employees (Cal.) 66e. 

Agent's fraud in procuring note binds corporation (Wis.) 1413a. 

Members cannot be sued on note purporting to be signed by proper officers (Neb.) 791b. 

Officers may be elected by one person voting proxies (N. Y.) 1037c. 

Organization as Charitable Association 

cannot cloak corporation for pecuniary gain (Minn.) 634a. 

Powers 

not specifically granted, withheld (Pa.) 1211a; unless necessarily incidental (Minn.) 634b. 
Power to have board of directors is inherent in all private corporations (Wis.) 1410b. 
A corporation may purchase and reissue its own stock (N. Y.) 914b. 

Presumptions 

A corporation is presumed to know the law of its organization (Ohio) 1144a. 

Quorum 

A majority of members necessary to legal meeting where number fixed (R. I.) 1253a. 
Reducing bank's active membership does not change number for quorum (R. I.) 1253a. 



•56 BANKS AND BANKING 



CORPORATIONS— Continued 
Beorganization 

makes new corporation liable for debts of old only to defrauded creditors (Neb.) 792a. 

Resolutions 

to be valid, must be reasonable and operate equally (N. Y.) 865a. 

Seal 

not essential to assignment of note (Mass.) 518a; or in general (Ky.) 348d, (Md.) 494a. 

Statute of Limitations 

as to non-residents does not appl 'to domestic corporations (Ark.) 48c. 

'Stockholders — see Stockholders 

Torts 

may be attributed to a corporation as to an individual (N. Y.) 1016c, (Wash.) 1387e. 

"Ultra Vires 

cannot be set up to defeat action on contract of which corporation has had the benefit 

(la.) 298d, (Tex.) 1340b. —is no defense to drawee of check (111.) 237c. 
Corporation has no title to note acquired ultra vires (Minn.) 634b, (Ohio) 1151b. 
Doctrine does not apply to corporation's torts (Wash.) 1387e. 

Yoluntary Associations 

Call to meeting must specify objects and be signed by president (R. I.) 1255c. 

COriUfTY COMMISSIOHTERS 

(See Public Officers) 

COUNTY OFFICERS 

(See Public Officers) 

COURT CL.FRK 

(See Public Officers) 

COURTS 

Court Funds 

Judges of court ordering deposit, are depositors (Mass.) 591c. 

Equity 

May deprive assignees of property of bank conveyed to them (111.) 184d; or direct man- 
agement of trusts (N. J.) 830a. 

Probate— see Executors and Administrators 

Powers— see Pleading 

State 

Appellate Court may enter proper judgment without remanding cause (111.) 181d. 

Common Pleas may enforce the dissolution of a corporation (N. Y.) 1100a. 

County Court in insolvency proceedings, may give depositor legal or equitable relief 
(Neb.) 780c. 

District Cbw;^ may attach state bank's assets before receiver is appointed (Neb.) 785d. 

Superior courts succeed to the district courts and their jurisdiction (Cal.) 75a; and 
may appoint directors of insolvent bank to fill vacancies (Cal.) 90a. 

Supreme Court may appoint a receiver for state bank at state's application (Neb.) 
776b, 779d; but the receiver cannot begin an action there to question transfers 
made by bank (Neb.) 785*. It has no jurisdiction by information (Ark.) 41b. 

State courts may entertain suits against national banks for taking usurious interest 
(Neb.) 775c, 776c, 778b, 783b; in any district where the court is situated (Neb.) 
775a; and may collect the penalty imposed by Congress (Neb.) 775b. Jurisdiction 
is not restricted by Act of Congress of July 12, 1882 (Minn.) 649c. — may interfere in 
the affairs of national banks (N. Y.) 1054a; but cannot enjoin them (Mass.) 587a. 
— have jurisdiction of bank outside county where situated (Cal.) 73a. 

U. S. Circuit Court has jurisdiction of suit by United States Bank (Conn.) 109b, 109c. 

United States Supreme Court decisions bind state courts (Ark.) 42b, as to constitutional 
questions raised by a state law (Ohio) 1144b. 

CREDIT 

Bank extending credit for specific purpose, not liable if other checks exhaust account and 

credit (lU.) 192a. 
Check credited, less collection, does not make bank holder for value (N. Y.) 946b. 



INDEX 5T 



CREDIT— Continued 

Custom, as to allowing credit is conclusive against bank (Tex.) 1332c. 

Estoppel. One giving fictitious credit to another is estopped (N. J.) 829a. 

Fraud in obtaining credit on bank's books nullifies it (N. Y.) 931a, (Pa.) 119d. 

Loan. Credit by cashier, entered in passbook, is loan by bank (N. D.) llSOd. 

Mortgage. Promise to deposit proceeds of sale in return for credit, a mortgage (Mo.) 
645a. 

Payment. Bank crediting one depositor's check to another, pays it (N. Y.) 953d. 

Promissory Note credited to payee makes bank a debtor for the amount (Kan.) 319d.- 

Revocation. Mutual credits between banks cannot be recalled by one to other's detri- 
ment (La.) 446c. Bank may rescind credit to banker holding himself out as incor- 
porated bank (N. Y.) 1072d. Bank cannot withdraw credit on overdraft of another 
depositor (Ala.) 31a. 

CREDITORS 

Action at law must first be resorted to (N. Y.) 872b. — against directors for fraud 
may be brought by one creditor for himself (N. C.) 1121b. 

Equality among creditors of equal rank is equity (N. Y.) 873c. 

Fraud. Knowledge of administrator of intestate's fraudulent intent does not estop the- 
heir to sue in representative capacity (la.) 309a. Creditors may recover the pro- 
ceeds of sale under a fraudulent mortgage by debtor (la.) 309a. 

Rights. Creditors may demand money or its agreed equivalent (Ind.) 275b. — may 
enforce rights against state bank, though an appropriation was made for its judg- 
ments by legislature (Ark.) 46c. 

Sureties may demand the utmost good faith of creditors (la.) 306a. 

See also Insolvency. 

CKIMrSTAIi liAW 

Check 

worthless, drawn in good faith, criminal intent not proved (Minn.) 662b. 

Embezzlement by Bank Officer 

is taking funds for his own use on worthless checks (Cal.) 80c. — o/"de facto bank (id.).. 

is included in general statute on embezzlement (Minn.) 646c. 

of national banks, defined and punished by Congress alone (Pa.) 1211e. 

Teller is liable for assisting cashier to embezzle (N. J.) 837a. 

It is no defense that others are implicated (N. Y.) 985c. 

Evidence of intent not limited to time of receipt of money embezzled (Ala.) 33c. — of 

similar offenses admissible (id.). 
Books of bank adinissible (Cal.) 80c. — to prove incorporation (Mass.) 594b. 
Ca7-e of funds must be proved (N. Y.) 988b. 
Charge to jury. Defendant not entitled to charge as to effect of evidence under each 

specification (Mass.) 594b. 
Jurors. Whether relation exists between them and stockholders, immaterial (Mass.) 594b.- 

False Books 

State must show defendant had knowledge or suspicion of falsity (N. Y.) 1056b. 

False Report 

Officer liable for making, though he was not the one required by statute to make report- 
(N. Y.) 1042a. 

Forgery (see Forged Instrtjmbnts) 

of check by clerk does not bind employer (Mass.) 559c. 

and making false entry axe separate crimes and national bank officers are punishable for- 

both (N. C.) 1117a. 
is consummated when there is an intent to defraud and paper prejudices third persons 

(id.). 
On indictment of bank officers, spurious notes found among bank's assets are admissible- 

to show intent (id.), —general evidence of incorporation is sufficient (N. Y.) 1011a. 
Witness is not incompetent because stockholder of bank whose notes were forged (Ohio)' 

1131b. 

Indictment (see Pleading) 

against officer of firm, condupting banking business, valid under banking statutes (Ala.) 

35c. 
for acting as officer of unincorporated bank, state heed not prove failure to incorporate 

(Ohio) 1137b. 
for embezzlement need not allege value or possession of money (Mass.) 594b. 
charging amount was in possession of bank or deposited therein, sufficient (Ala.) 33c. 

— the offense in substantially the terms of the statute, is sufficient (Mo.) 698e. 
for forgery of bank note need not describe figures in margin (Ohio) 1131a. 
or illegal banking can be had against most prominent member of banking house or 

against all partners (Mo.) 698e. 



58 BANKS AND BANKING 



CRIMINAL LAW— Continued 
Indictment (continued) 

for putting notes into circulation contrary to law, it must be proved that notes were to 

be circulated as money (Mo.) 695c. 
for perjury in bank report, charging liabilities to be greater than report, is sufficient 

(N. Y.) 1041c. 
against national bank may be had under state law (S. D.) 1275b. 

for receiving deposits after insolvency must contain allegation of insolvency (111.) 209c. 
— must charge receipt in official capacity (Ind.) 280a. — need not charge knowledge 
of insolvency (111.) 209c. — may charge offense in language of statute (Ind.) 276a. 
— is sufficient, when stating receipt of deposit without stating ownership (la.) 302c. 
Challenge to juror having opinion as to solvency should be allowed (Kan.) 332d. 
Checks proved need not conform exactly to specifications (Mass.) 594b. 
Variance between note proved and one specified is fatal (Mo.) 695c, 699c. 

Larceny 

by taking check animo furandi (Cal.) 66f. 

from "all banks" under statute, includes national bank (Conn.) 119a. 
cannot be predicated of theft of spurious bank note (S. C.) 1257d. 

Federal statute, providing remedy, does not regulate business of national bank with its 
customers (Conn.) 119a. 

Overdrawing of Accoiint by Bank Officer 

It must be shown that the money on the check was actually obtained (N. Y.) 1019e, 
for bank's possession of check is not sufficient (N. Y.) 1019e. 

Perjury 

Cashier's opinion under oath as to value of securities not perjury (Cal.) 84d. 

■Quo warranto 

a criminal proceeding and cannot be used to oust trustees of insolvent bank (111.) 184d 

Beceipt of Deposits by Officers of Insolvent Bank 

within so days of insolvency is prima facie proof of knowledge of insolvency, and assent 

thereto may be combined in one count as one offense (Colo.) 106d. 
or mingling of funds, is prima facie evidence of fraud (111.) 240c. 
with knowledge of insolvency renders him subject to arrest (N. Y.) 975a. 
does not render him liable under Act of 1889, P. L., 145, if deposit is kept separate from 

insolvent bank's funds and returned to depositor (Pa.) 1236c. 
Accused may show that he is illiterate, took no part in bank's affairs, also what officers 

were guilty (Colo.) 106d. 
Anv "indebtedness" includes debt created by deposit and execution of certificate of de- 
posit (Mo.) 749b. 
Cashier's receipt of money makes bankers guilty (la.) 294c. 
Certificate of incorporation is admissible in evidence (Mo.) 758b. 
Deed of appraisetnent and proof of deposit admissible in evidence (Ind.) 276a. 
Defendant's knowledge of deposit proper on cross-examination (la.) 302c. 
Deposit ca.nnot be received after insolvency to satisfy unmatured note of depositor (Ind.) 

276a. — of money and certificate of deposit in exchange for certificate of deposit, 

is deposit within statute (Wis.) 14-23a. 
Depositor cannot recover amount unless he shows malice or fraud in management of 

bank (Mo.) 723b. 
Duty of officer to use reasonable diligence to ascertain solvency of bank (Ind.) 280c. 
Each receipt of deposit is separate offense under the act (Mo.) 755b, (Pa.) 1247c. 
^z/irffwcs o/" value of exempt homestead of officer is inadmissible (la.) 294c. — demand ■as^A. 

refusal to return deposits is admissible (Mo.) 749b. — cashier's assent to receipt of 

deposit, by insolvent bank will not sustain indictment for receipt thereof (Mo.) 752b. 
Expert testimony as to bank's condition is admissible (la.) 294c, 303b. 
Failure to prevent further deposits is construed as authorizing their receipt (Mo.) 749b. 
Intent is implied (Mo.) 744a. — not an element of receiving deposit when insolvent 

(111.) 209c. 
Knowledge of insolvency is not essential (Ind.) 280c. 
Legislature had power to enact that such receipt within 30 days before bank's failure 

was presumptively fraud (Ind.) 276a. 
Loss of entire deposit not necessary to offense (111.) 231a. 
Mere negligence of president is not a crime (Kan.) 332d. 
No liability in civil action (Mo.) 716c. 
Officer presumed to know bank's condition (Mo.) 749b, 760c. —indicted under R. S. 

4541, may be tried by judge from another circuit than that in which case arose (Wis.) 

1417a. — o/" trust companies not included (Mo.) 747a. 
On trial of cashier, real estate owner knowing values can testify as to value of bank's 

realty (Mo.) 749b. 
Private bankers are indictable within amended act (Mo.) 738b. 
Proof of loss is sufficient to show insolvency (Ind.) 276a. — deposit with private banker 

and failure of bank make prima facie case (Mo.) 744a. 
Rules of pleading in embezzlement apply (Ind.) 280a. 



INDEX 59 

CRIMINAL LAW— Continued 

Heceipt of Deposits by Officers of Insolvent Bank (continued) 

Statute applies to national banks (la.) 311a. — does not include private bankers (Mo.) 

732b. — applies to state and national banks (la.) 300c. 
Summary of amounts received is. admissible (Minn.) 663d. 

Testimony of receiver and books of bank, admissible to show value of assets (la.) 311a. 
Under R. S. 1889, sec. 2760, action at law proper remedy (Mo.) 760c. 
When bankers run two banks, condition of both may be shown (la.) 294c. 

Yenue 

Under G. S. 1899, sec. 5271, offense committed partly in one county and partly in an- 
other, punishable in either (Kan.) 338a. 

CURRENCY ACT 

(See Statutes) 

CVSTOH AKI> VSAOE 
Assent 

is implied by the fact of dealing with bank (Miss.) 674a. 

cannot change the law, (Ala.) 36a, (111.) 186d, (Mo.) 715c, (N. Y.) 1006b, 1013a, 

(Ohio) 1150c, 1163b. 
cannot excuse non-performance of required acts (Ind.) 277c. 

Certificate of deposit 

Certificate payable in currency is not payable in current bills, regardless of custom 

(N. Y.) 929c. 
Bank protesting without grace, as per custom, is not liable for negligence (la.) 289b. 

Checks 

Custom, cannot enlarge legal effect of certification (111.) 242a. — excuses laches (Me.) 
480c. — does not give teller power to certify (Mass.) 533d. — cannot extend time 
of presentment (Mo.) 720a. — does not determine what is reasonable time for present- 
ment (Neb.) 783a. ^^r president to sign checks in absence of cashier is valid (Tenn.) 
1290b. — is to pay them without observing memoranda (111.) 214d. — determines 
measure of diligence in presentation (N. Y.) 913a. — does not determine bank's lia- 
bility on certified checks (N. Y.) 961a. 

Clearing house 

Custom based on rules of clearing house does not affect holder of paper (N. J.) 825b. 
—does not bind those not in organization (N. J.) 825a. — docs not charge depositors 
with knowledge (La.) 444a. —fixing time when conditional payment through clearing 
house becomes absolute, is valid (Mass.) 596d. 

Collecting Bank 

Custom, if usual, bank is not liable (Cal.) 86c. — of receiving certificate of deposit in 
payment of mortgage need not be proved (la.) 291b, and mortgage is discharged 
(id.). — makes it agent of holder, not of forwarding bank (N. Y.) 866d. — to take 
trust company check in payment of draft does not relieve it from liability (N. Y.) 
940a. — to forward drafts directly to drawers in cities, where they have no representa- 
tives, is unreasonable and void (Ore.) 1169c — to turn over notes to express com- 
pany for collection in places where there is no bank, may be shown (Wis.) 1399b. 
Person dealing with collecting bank and giving no special instructions is bound by 
usage; knowledge is immaterial (Tenn.) 1317c. 
See also Collections. 

Construction 

Custom, to pay apparently genuine order is no defense to payment on forged order 
(Conn.) 115e. — not to correct errors is not sanctioned by law (Ky. ) 341b. — to 
refuse to pay depositor without indemnity, where signature is unsatisfactory, cannot 
deprive depositor of right of payment (Mass.) 542a. — to send collections to corres- 
pondent bank is unreasonable and will not be recognized (Mo.) 753a. — o/ transmit- 
ting drafts between banks for collection, and crediting in account the avails, cannot 
effect claims of third persons (Conn.) 110c. —fo infer correctness of account for failure 
to discover errors warrants inference after three years that account is correct (Md.) 
4.97c. — to identify persons presenting checks does not limit negotiability and is no 
defense to action on check (Mo.) 746b. —cannot be used to prejudice third persons 
not having knowledge (N. Y.) 1060b. —allowing retention for collateral for general 
balance must be proved (N. Y.) 960a. —to waive notice and demand does not bind 
indorser not waiving (N. H.) Slid. 

Credit 

Bank's custom is conclusive against it (Tex.) 1372c. 

Deposits 

Custom, if legal and reasonable, forms a part of contract and may be proved m action 
thereon (N. Y.) 1013b. 



60 BANKS AND BANKING 



CUSTOM AND USAGE— Continued 
Drafts 

Burden of proof of custom of making demand and payment by telephone, where no pro- 
test is required, is on bank (Mo.) 755c. 
Collection by balancing accounts is custom impliedly assented to by owner (Tenn.) 

1313a. • ~ 

Usage between banks cannot deprive owner of rights (Ky.) 366c. 

Effect 

Custom cannot affect bank's UabiUty to its principal for collection (N. Y.) 886a. 
Special contract between bank and customer cannot be waived by usage of other banks 

(D. C.) 130b. 
Usage of banks is part of the law of the land (Md.) 500a. 

Evidence 

■may be given by one who is not a banker (N. Y.) 907c. 

may excuse delay in presentation of check (Conn.) 114d. 

is admissible only in absence of agreement to prove intent (111.) 189c. — where bank 
borrows money without authority (Ind.) 281b. —to show that an entry in a book 
with reference to a special deposit meant that it was to be returned in kind (Md.) 
504a. —<7/" known custom of protesting notes at close of due day (Mass.) 539e. — of 
liability of collecting bank (N. Y.) 866d. —<?/ intention in executing blank transfers 
(N. Y.) 870b. —o/ nature of business of receiving bonds (N. Y.) 1082b. —o/ custom 
in particular locality known by the party to be charged (N. C.) 1113a. — /Aa^ banks 
do not pay checks to unidentified strangers even when payable to bearer (Ohio) 1143c. 
— io explain a fact proved (Pa.) 1188b. —as to transmission of funds from one bank 
to another (la.) 289c. 

is inadmissible to show that loan to cashier is contrary to law (la.) 297c. —authority 
of cashier to transfer note by indorsement (La.) 376b. —that the custom is unreas- 
onable (Md.) 508b. —custom of other banks in action for interest (N. Y.) 1049b. 
— local custom relieving bank from presumption that it knows signatures of its cus- 
tomers (Tex.) 1337d. — custom not to disclose agency when making collection (N. Y.) 
873d. —custom to receive stock in payment of debts, to show transfer (Miss.) 666c. 
— local custom to pay in depreciated bills (111.) 187b. 

Books are best evidence of discount custom (N. Y.) 854d. 

Custom not established by few instances in certain banks (Md.) 503a. 

Cashier's understanding of term is not evidence of a known custom (N. Y.) 926c. 

Custom of bank at which bill is payable sustains averment of due notice (Ala.) 17a. 

Judicial notice of custom will be taken when universal (111.) 186a; contra, when not 
previously established (Md.) 496c. 

Knowledge of 

makes custom binding (Me.) 475b, (Mass.) 517a, if certain and uniform (Tenn.) 1310a. 
is chargeable to director or on transacting much business with bank (Me.) 475b. 
sureties of custom to extend time on paper without releasing sureties, estops them from 

setting up such extension (Me.) 458d, 462d. 
teller's custom by company shows his authority (Mo.) 765b. 

Notice 

of variance from custom as to payment must be given to depositor (S. C.) 1269d. 

Notice of dishonor 

is essential to change relation of debtor and creditor (N. C.) 1107d. 

Custom is not sufficient where a note is not payable at the bank (Me.) 475b. 

Notice is sufficient if sent in accordance vrith custom (Md.) 492a, (Mass.) 517b, 517e. 

Sending by mail as customary, binds indorser (Mass.) 534a. 

Custom to waive notice, bank cannot hold indorser not waiving (N. H.) 811d. 

Notice to indorser on day after dishonor is reasonable, notwithstanding custom to give 

earlier notice (Mass.) 529c. 
Custom must be usage of bank where note is deposited (Me.) 467b. 
Making a special deposit is not evidence that depositor had knowledge (N. C.) 1107d. 

Promissory notes 

Custom making all notes joint and several does not alter a note's terms (Me.) 472c. 
— enters into the contract if known (Miss.) 665a. 

Protest 

made before customary hour does not bind indorsers (Miss.) 665a. 

Usury 

can?iot be legahzed by custom (la.) 307a. 

Custom, is inadmissible to repel usury (Miss.) 664c. — to discount in advance is not 
usury (Va.) 1369c. 

"Warehouse receipts 

Collecting bank not liable for surrender, according to custom, of warehouse receipts at- 
tached to drafts (La.) 450d. 



INDEX 61 

DAIHAOES 

(See Measure op Damages) 

DAYS OF GRACE 

(See Grace) 

DECEIT 

(See Fraud) 
DEEDS 

under corporate seal of bank are prima facie good (Mass.) 530b. 

to a bank of land it cannot legally buy, are void (Ind.) 249c. 

witnessed by member of grantee savings bank are void (Conn.) 116a. 

of wife delivered before acknowledgment are void (Cal.) 70b. 

by notary to bank director and by him to wife who kept it, is not delivery to bank (id.) 

DEMAND 

(See Checks, Deposit, Interest, Payment, Promissory Notes) 

DEPOSIT 

By Agent 

makes bank debtor to principal (Wis.) 1416c. 

belongs to principal (Pa.) 1194b, (N. D.) 1130d; not to transmitting agent (la.) 289c. 

in agent's natne to principal's knowledge, not a trust (Neb.) 797d. — is payable to 
agent (Dak.) 126c, (Pa.) 1185b. Contra, where bank knows of agency (Neb.) 790b, 
791c, (N. Y.) 1039a, 1084b, (Tex.) 1320c, or knows depositor insolvent (Mo.) 761b. 

cannot knowingly be credited to another than owner (la.) 289c. 

z/"unauthorized, maybe ratified (Cal.) 70c. — by acquiescence (La.) 438b. 

must be transferred by agent at principal's request (Mont.) 767b. 

transferred to principal, gives him preference over agent's creditors (Mo.) 709c. 

is presumed not withdrawn if agent's own funds were equal to his checks (HI.) "ZiSis. 

For power of bank to apply to agent's individual debt. See Application. 

Application 

on continuing consent, of deposit to bank's debt, is equivalent to request (N. Y.) 1062a. 

by bank of drawer's funds to draft need not be made (Ga.) 166a, (Mo.) 701d. — may 
be made where draft is due and depositor deceased (Mo.) 712c. 

Bank may apply deposit to debt of depositor (111.) 214c, 233b, (Ind.) 277b, (Mo.) 715b. 
—already due (Mich.) 621f, (Mo.) 712a, 721a, (N. Y.) 1086a, 1098a, (N. C.) 1103d, 
(Va.) 1369a. — without depositor's request (la.) 294a. —after his statutory assign- 
ment (Tex.) 1339b. —before his assignment (111.) 221a. —where deposit represents 
collections (Mo.) 721a. —««&r previous agreement, without regard to secret equities 
(N. Y.) 1081a. -Tvithout reference to source (Tex.) 1333d. —Tjfhere funds are public, 
but in name of depositor (Mass.) 551c. — though deposit consists of securities (Mass.) 
565a. —notwithstanding attachment (N. Y.) 1086a. —where it has extended credit 
on faith of deposit without notice of ownership (Pa.) 1237b. 

Bank may waive right to apply (Ind.) 279b. 

Bank may apply deposit to note of depositor (111.) 227b. —pavable on demand (Mich.) 
626b. —without demanding payment (111.) 224c. —if overdue (N. Y.) 923d, (Ohio) 
1131a. — discounted and due (Mo.) 721a. — discounted where depositor died before 
maturity (Va.) 1369a. —after judgment on note (N. Y.) 923d. —without reference 
to depositor's insolvency (111.) 224c. 

Bank may apply to note funds of indorser (Me.) 462a. — o/ any previous party (Pa.) 
1230c. Contra as to guarantor, unless he is indorser also (Pa.) 1219a. 

Bank cannot apply deposit to debt not due (N. Y.) 1056d. —to debt of bankrupt not 
due (Mo.) 721b. -to debt of decedent not matured in his lifetime (N. Y.) 983a. —if 
new and distinct, to balance due on old deposit (111.) 204a, (La.) 443d. —without 
consent, though under military order (La.) 431d. —without authority (Mo.) 729c. 

Bank cannot apply deposit to note not due (N. Y.) 1058b. —not due, after depositor's 
death (Mont.) 768b. —overdue, where depositor is settling partner (N. C.) 1126a. 
—without authority, if payable at bank (Ind.) 262a, (Mass.) 567b; or if not payable at 
bank (Neb.) 778a. —ct/ husband without authority of wife, the depositor (Ind.) 272b. 
-^OTW^/j/ indorsed, if deposit is subsequent and individual (N. Y.) 878a. —where de- 
posit is made by one in maker's name, without consent or misleading act (Minn.) 
633e. —of stockholder 'Real Estate Bank' (Ark.) 44b. —of testator of depositing 
executor (R. I.) 1252c. —o/" trustee depositing to personal account (Ga.) 174b. —of 
guardian, though entitled to allowance out of trust deposit (Mo.) 744b. _ 

Bank cannot apply deposit to depositor's draft, due after assignment for creditors (N. Y.) 
900a. -Tinthout instructions after protest (La.) 424c. —without instructions when 
payable at bank (111.) 208c. 

Bank cannot apply to individual debt, a deposit made by one as agent (N. Y.) 1017c; 
contra (Kan.) 337d. —of collections made by agent (N. Y.) 998a. —by agent, regard- 



62 BANKS AND BANKING 



DEPOSIT— Continued 
Application (continued) 

less of notice (Neb.) 790b, 791c. — by agent, though agent is insolvent (N. Y.) 1046a; 
contra where there is no notice of agency and bank has settled with agent's assignee 
in bankruptcy (Mass.) 565a. —by broker of bonds given him for sale (Neb.) 772c. 
—by trustee, if bank knows of trust (Mo.) 744b, 744c, (Wyo.) 1430b. Contra, if bank 
is without knowledge (N. Y.) 1080c. —by county treasurer (S. D.) 1280d. -bji one 
wrongful holder (111.) 212d; where bank has constructive knowledge (Wyo.) 1430b. 
Bank is not bound to apply deposit to note of depositor i^.Y.) 974b. — unless directed 
(Cal.) 92a, (Fla.) 135a. —as against surety (Kan.) 338c, (Mo.) 756a; contra (Pa.) 
1217a. — as against surety not party to agreement making deposit specific (Ind.) 
261b, 265b. — as against surety, note not included in general account of depositor 
(Mass.) 563d. —after maturity (Pa.) 1217a. —as against indorser, after maturity 
(Pa.) 1216c —as against indorser, deposit made after maturity (Pa. ) 1244b. —fli 
assigned by bank, after judgment (Wis. ) 1423b. —held as collateral ( Ind. ) 265b. 

Bank is not bound to apply to note deposit of indorser accruing after maturity (Pa.) 
1238e. —made for indorser, against instructions of depositor (N. Y.) 957a. 

Drawee' s funds must be applied to a matured draft (Tex.) 1335b. 

Bank must apply deposit of maker to note as against surety (la.) 301a. — surety on note 

due (Pa.) 1218a. — indorser (V a..) 1230c. —zwrfora^r after protest (Pa.) 1241d. 
Where bank has the tight to apply, it must exercise such right within a reasonable time 
as against surety on depositor's draft (Ky.) 369b. 

Contract of bank to apply deposit to its judgment is enforceable without demand (S. D.) 
1278c. —not to apply deposit to mortgage debt is good as against depositor's execu- 
tion creditors (La.) 451a. — before insolvency to apply other's deposits to one de- 
positor's overdraft, gives bank option (N. Y.) 989c. 

Guarantor is entitled to have subsequent deposits applied to subsequent transactions 

guaranteed (111.) 241c. 
Where title to deposits is disputed, law applies checks to undisputed part (N. Y. ) 1052e. 

In running account, law applies payment of overdraft to oldest item (Ky.) 374b. 

An agreement for application of deposit to debt operates, after bank's insolvency, as an. 
equitable appropriation (Pa.)jl200c. 

Assignment 

gives assignee depositor's rights only (Conn.) 123c, (Mass.) 568d, 573a, (N. Y.) 923d. 
— light to sue in assignor's name (Mass.) 555b. — title superior to that of assign- 
or's receiver (Dak.) 126c. 

JM yra«fi? of creditors makes deposit payable to assignor's administrator (Me.) 490e.^ 

of order to pay on passbook for special purpose, cannot be made for another purpose 
(Conn.) 125b. 

m,ay be by parol (N. Y.) 997a. — by order for full amount (Mass.) 552c. 

is not effected by delivery of deposit slips (N. Y.) 1043c. — of check to cashier out of 
bank (Mass.) 540e. 

Certificate of Deposit 

may have character of deposit, though matured (Wis.) 1423a. 

received by issuing bank, warrants drawing of checks thereon (S. D.) 1277a. 

cannot be issued to individual for certificate held as special guardian (N. Y.) 1084b. 

Checks — see Checks. 

Confiscation 

proceeding does not affect title of third persons originating before seizure (N. Y.) 997a. 

Definition 

The characteristics of a general deposit attach to money deposited by savings bank under 
agreement for interest (N. Y.) 978c, 985b. —proceeds of discounted drafts credited to 
drawer (Ky.) 374a. — credit of its tax on deposit of receipt by county'treasurer (Ind.) 
270c. — m^ney given to cashier for which a certificate is taken, within statute pro- 
hibiting fraudulent receipt (la.) 294c. —pledge held by pledgee, after payment, for 
benefit of owner (N. Y.) 1026a. 

Guaranty fund and undivided profits not deposits by St. 1862, ch. 224 (Mass.) 582e. 

Demand 

is necessary to fix bank's liability for deposit (Ala.) 40c, (Colo.) 106c, (Del.) 127a, 
(111.) 197a, 203f, (Ind.) 272b, (N. Y.) 868b, 880a, 1073b, 1075b, 1081d. —for 
penalty for withholding deposit (Mo.) 698a. —for money had and received (Ind.) 
272b; contra (Mo.) 698a. 

is unnecessary if bank has suspended (111.) 239c, 242b, (Mass.) 532d. — denied that 
plaintiff is a depositor (Mass.) 578d, or depositor's right to balance (Pa.) 1238a. 
— stated its intention not to pay on demand (N. Y.) 1081d. — waived notice of with- 
drawal (111.) 236b. 

of credit for checks deposited is sufficient (N. J.) 828c. 

Depositary 

appointed by city, cannot recover damage firom prior depositary for failure to deliver funds. 
(N. Y.) 949b. 



INDEX 63 

DEPOSIT— Continued 
Depositary (continued) 

S-ate cannot pursue defaulting depositaries of officers except by garnishment (Mo.) 724d. 
— by redesignation of bank as depositary, accepts it to hold balance under prior 
contract (N. Y.) 1085d. 
Trust company, authorized and agreeing to accept money on deposit, is liable for omis- 
sion and neglect to receive it (N. Y.) 1046b. 
Mistake in selecting depositary must be promptly disaffirmed (N. Y.) 970b. 

Depositor 

has a right to control his funds (Cal.) 75d. — reserved profits in savings bank (R. I.) 
1255a. — hold retired partner if retirement was unknown (S. D.) 1283d. — withdraw 
and misapply deposit, though bank knows of intention (Mo.) 732d. 

is not affected by omission of entry of credit on books (Kan.) 317a, (S. C.) 1271b. 
— unknown custom in dealing with clearing house (La.) 444a. — a by-law, if uncon- 
stitutional (Cal.) 85d. 

must object to bank's statement of account (111.) 232c. — within a reasonable time (Mo.) 
755a. — within a reasonable time after balance of book and return of check (Md.) 
508c, (Mo.) 735b. 

is not bound to examine vouchers (Pa.) 1242d. — vouchers and account (N. Y.) 1076b, 
1097f. — canceled checks for forgeries (Tenn. ) 1318a. —passbook for forgeries (N. Y.) 
996b. —passbook and vouchers for forgeries (N. Y.) 965a, 982a, 1047c. 

is not guilty of negligence per se having facsimile name stamp (Pa.) 1240b, 1243b. 

is not negligent, though entrusting check book to bookkeeper (N. Y.) 1053a. — z/^ careful 
to select competent persons to examine passbook (N. Y.) 1076b. 

delegating exatnination is responsible for non-disclosure of forgeries resulting therefirom 
(Pa.) 1246a. —fraud or neglect of agent (Ala.) 34d. 

knowing, but not informing bank, of forgeries, is liable for loss from subsequent and 
similar forgeries (La.) 432c. 

is bound to examine book and canceled checks and to report forgery (Tex.) 1325c. — no- 
tify bank of loss of deposit book (N. J.) 843a. — use ordinary care, in questions of 
forgery (N. Y.) 998b. 

is not liable for loss through forged draft without gross negligence (N. Y. ) 882b. —for 
negligence in giving notice of forgery, unless bank is injured (N. Y. ) 1059b. 

failing to give notice of loss of passbook, cannot recover money paid on it (N. Y.) 941c. 

if negligent, cannot recover (N. Y.) 1041a. 

has no right to any particular security (N. J.) 830a. — sue savings bank for loss of part 
of deposit (Conn.) 120b. 

in savings bank is a stockholder (N. H.) 818a; sharing profit and loss (N. H.) 816a. 
— is not a partner of other depositors, or of bank (Me.) 464b. 

Judges of court, ordering deposit, are depositors (Mass.) 591c. 

Subscribers to non- transferable bank stock are not depositors (Conn.) 118b. 

Failure to object to account makes depositor liable for loss from unauthorized checks 
(Ind.) 279d. —for nine years is such laches as defeats recovery (La.) 445c. — makes 
an account stated (N. Y. ) 902b. -for three years makes an account stated (Utah) 
1345c. — with knowledge of forged draft is not gross negligence (N. Y.) 882b. 

Depreciated Funds 

Bank, not depositor, must bear'loss by depreciation (111.) 186d; of bank notes received 
as money (Del.) 128b. 

Estoppel 

Bank is estopped by making written statements that deposits are public moneys, to deny 
them that character (S. D. ) 1280d. — telling depositor that account has been trans- 
ferred, to deny liability (Cal.) 96b. —receipt of money, to deny obligation (111.) 210c. 
— receipt and user of money, to deny liability (N. H.) 819a. — after paying note 
sent for collection to assert that it was paid out of trust fiinds (Mich.) 623b. 

Bank is not estopped firom showing real ownership unless it has incurred liability to oth- 
ers (Pa.) 1197b. — by paying part of deposit to one of two adverse claimants, to in- 
terplead them (Mich.) 618a. 

Depositor is estopped, by directing application of deposit, to deny its validity (Mo.) 767a. 
— by drawing check paid by bank, to say it was unauthorized (Ind.) 271c. 

Depositor is not estopped in suit for overcharge, unless delay has caused damage (Vt. ) 
1362a. —by retaining account without objection (N. Y.) 1053a. —by attempting to 
enforce the claim against another bank not liable (Neb.) 805c. 

Depositor is not estopped, without damage to bank, by negligence in notifying bank of 
error in account (Wis.) 1419c, or of forgeries in book and check (Tex.) 1325b. 

Evidence 

Bank's admission as to ownership of deposit is not binding on depositor or third person 

(N. Y.) 1030c. —by paying individual check, is evidence that deposit is not special 

or official (Del.) 127b. —by letter to depositor, showing control, is admissible as to 

gift (Mass.) 576a. — by manager's allowance of claim, is evidence of account (Cal.) 89c. 

Bank books are admissible (Cal.) 100a, (N. Y.) 1019b, where depositor kept no pass- 



'64 BANKS AND BANKING 



DEPOSIT— Continued 
-Evidence (continued) 

book or record (La.) 45 7d. —as to ownership, but not conclusive (Me.) 487d, 488a. 
—^o show state of account (lud.) 270d, (Mo.) 710c. —io show account, where deposi- 
tor has transcripts (Mass.) 521d. 

Bank books themselves, not a synopsis, should be produced (Mo.) 708a. 

Belief as to identity, when bank gives property to wrong person, inadmissible (Pa.) 1199a. 

Burden of overcoming presumed acquiescence in account is on depositors (Mich.) 610c. 

Burden of proving payment of deposit is on bank (111.) 207b, (Neb.) 806c. —receiver 
(N. Y.) 1076d. —trustee (Tenn.) 1302b. 

Burden of proving necessity of notice of withdrawal is on bank (Mass.) 585e. —gift, is 
on donee (N. Y.) 1048a, —gross negUgence of gratuitous bailee is on depositor (Pa.) 
1209d. —diligenix after failure to deliver special deposit is on bank (Ga.) 170d. — that 
deposit is special is on the one asserting it to be special (Okla.) 1166b. —error in 
credit is on bank (La.) 383c. — title to deposit, is on claimant (Pa.) 1215a. 

Cashier's testimonv is admissible to show agreement as to deposit (111.) 180a. — a/>/>/«tfl;- 
i'«o?2 of deposit '(S. D.) 1281d. 

Certificate of deposit, though unstamped, is admissible to prove specific deposit (la.) 286d. 

Court must construe written contract of deposit (S. C.) 1270c. 

Custom of bank as to application of deposit to matured note, is not admissible (Pa.) 
1218a. — is admissible to explain entries in bank books (Md.) 504a. 

Declarations of depositor are admissible to prove ownership (Pa.) 1197b. — agreement 
as to appUcation (Mo.) 767a. Contra as to gift, where declarations were with regard 
to making wUl (Mass.) 576a. 

Declarations of depositor, in action for refiisal to pay checks, made at time of reftisal, 
are inadmissible (Mo.) 767a. — as to solvency, where application has been made to 
note not due, are inadmissible (id.). 

Degree of care over special deposits may be shown by similar negligent acts (Me.) 481a. 

Demand and refiisal not proof of conversion of deposit as collateral (Me.) 480a. 

Deposit tickets are prim.a facie evidence of general deposit (111.) 197a, (Wash.) 1384a. 
—o/ &/>o«V on certain date (Pa.) 1238d. —o/ amount of deposit (Tenn.) 1306c. —but 
may be contradicted by 'parol (id.). 

Deposit tickets to credit of another do not prove property in depositor (111.) 225a. 

Diligence in care of deposit is not proved by showing that bank entrusted its own prop- 
erty, also, to cashier (Ga.) 170d. 

Expert who has examined bank's books may testify as to state of account (Ind.) 270d. 

Jury must pass on ownership of deposit (Ga.) 168d, (Mo.) 724b, 766b. — agreement as 
to overdraft (lU.) 244c. — bank's negligence in paying deposit (N. Y.) 977c, 1027d, 
,!^ 1044b, 1095b. —good faith in receiving deposit (N. Y.) 1022b. —question whether 
checks were received as general or special deposits (N. Y.) 828c, 1053b, 1089b. — knowl- 
edge of president of cashier's speculations (Ga.) 169c. — depositor's negligence in 
informing bank of error (Wis.) 1419c. — identity of depositor (Mass.) 569c. 

Negligence in paying forgery is measured by standard of skilled person (N. Y.) 1022c. 

Overdraft may be proved by bank clerk, though under inchoate liability to bank (La.) 
378a. — checks, drafts and passbook (Pa.) 1243c. 

J'arol evidence is admissible to show bank's authority to apply deposit (S. D.) 1283b. 
— intent of depositor as to gift (Me.) 485b, (Mass.) 552b. — that certificate is inter- 
est bearing (N. Y.) 1027a. 

Passbook entry is admissible (111.) 239c. — where made by bank's clerk (111.) 241a. —where 
envelope is passbook (Mass.) 588a. — to show amount (Cal.) 82b. — to show time 
and amount (Kan.) 336b. —6«< is not always best evidence (S. C.) 1269d. —contra 
(S. C.) 1260d. — da/ not conclusive (La.) 409d, (Me.) 490d. 

Presumption is that deposit is general (Neb.) 790a, (Ore.) 1169d. — as to intention to 
select depositary, from receipt of passbook, is not conclusive if depositor is illiterate 
(Neb.) 806c. — is that one has drawn his own individual fiinds first (Me.) 486b. — of 
agreement to pay interest is not drawn from past payment (Pa.) 1244c. — is that woman 
depositor is a feme sole (N. Y.) 861a. — is that deposits in dual representative capac- 
ity were withdrawn in order of deposit (N. Y.) 1097b. — of correctness of account 
is raised by acquiescence for seven months (N. Y.) lOOle, for two years (Mich.) 610c. 
— is that depositor may direct application (Ohio) 1151a. — is that depositor is owner 
and gives true name (Ore.) 1167c. — o/" title is not weakened by having deposit for a 
year in another name (N. Y.) 1052e. — of truth is with depositor's clerk and pass- 
book as against bank's clerk (La.) 409d. — o/ proper distribution of losses of savings 
bank arises after 50 years (Mass.) 581c. — is that drafts are to be credited to de- 
positor (Tex ) 1332c. — that bank has fiinds of a person does not arise from the 
fact that he was once a depositor (CaL) 79b. — is that deposit to overdrawn account 
is to pay overdraft (Neb.) 790a. — is that deposit is sufficient when check is accepted 
and paid, and bank books are inadmissible to prove overdraft (N. C.) 1102c. 

Trust deposit's character may be shown on cross-examination (Pa.) 1202a. 

Value of deposit and currency in which payment was made are admissible (Ga.) 157a. 

!Fraud (see Criminal Law) 

must be actual, not constructive (N. J.) 846b. 

cannot be predicated on statements made to Secretary of State as to bank's condition 



INDEX 65 

DEPOSIT— Continued 
Fraud (continued) 

(Mo.) 763c. — bank's failure to pay deposit (La.) 422a. — bank's receipt of bond to 
make better showing, when bond is valuable asset (N. Y.) 989a. 
\Bank cannot recover on check fraudulently received (N. Y.) 1061a. 
\ Depositor lending checks to bookkeeper for fraud is liable on them (111.) 212b. 

Intent to avoid attachment by depositing in another's name does not forfeit deposit to 

bank (Mass.) 554c. 
It is fraudulent in bank to conceal error in overcrediting account (La.) 443d. — to con- 
ceal non-payment on account (la.) 311b. — to accept deposit with knowledge of its 
insolvency (111.) 226b, (Miss.) 688c, (N. J.) 840b, (N. Y.) 1036a, 1074a, 1083b, 
(Tenn.) 1318b, (Wis.) 1428b. 

General 

does not make bank depositor's agent (Ala.) 27b, (Mo.) 726b. —trustee (N. Y.) 963c, 
1007b, (S. C.) 1271a. —bailee (Dak.) 126c, (111.) 186d, 188b, (Wis.) 1416c.. 

Relation between bank and depositor is that of debtor and creditor (Ala.) 27b, 29c, 
(Ark.) 54c, (Cal.) 85d, (Dak.) 126c, (D. C.) 130b, (Haw.) 179c, (111.) 186d, 222c, 
233b, 235d, (Ind.) 268b, (la.) 301c, 310b, (Ky.) 366b, (La.) 421d, 451b, (Mich.) 
607a, (Minn.) 636c, (Mo.) 712c, (Neb.) 774b, 790a, (N. Y.) 859a, 923d, 953d, 
963c, 1007b, 1010c, (N. C.) 1109a, 1118a, (Ore.) 1169d , (R. L) 1256d, (S. C.) 1270c, 
1271a, (Tenn.) 1301b, 1307c, (Tex.) 1327c, 1328b, (Wash.) 1383d, (Wis.) 1416c. 
Contra, as to checks deposited for collection (Ind.) 265c, (Neb.) 780d. 

Relation of debtor and creditor arises from, deposit of trust fund where general and not 
a misappropriation (Ind.) 269b. —deposit of city funds (N. Y.) 949b. —deposit of 
checks (R. I.) 1255d; drafts and orders for credit subject to immediate draft (Mo.) 
726b. — deposit oi treasury notes by one banker with another (Tex.) 1328c. — deposit 
in branch bank of notes of parent (Ark.) 45d. —deposit of Confederate money (Miss.) 
686a. — deposit of proceeds of collection when mixed with bank's funds (111.) 188b. 
—credit on passbook (N. Y.) 1050d. —deposit of infant's funds to mother (La.) 449b. 
Contra,\he. State is not a creditor of its officer's depositary (Mo.) 724d. 

Relation is created only by consent (Neb.) 788c. 

Relation does not arise from unauthorized act of third person (111.) 216b. —from, bank's 
issuing certificate for money collected (Neb.) 788c. 

Relation is unaffected by addition of "cashier" to depositor's name (Va.) 1381b. — strik- 
ing balance (N. Y.) 880a. — delivery of passbook containing rules varying ordinary 
contract (N. Y.) 951b. -subsequent by-law (Mich.) 623d. —transfer of deposit by 
depositary to another bank (Neb.) 805c. —merger of banks (Cal.) 69d. — charging 
back unpaid draft (Mo.) 751a. —custom of bank without notice (N. C.) 1107d. 
— bank's insolvency (Md.) 505b. 

Relation is continuous between bank and county (Minn.) 652b. 

Relation of savings bank to depositor is that of agent (Conn.) 120b. — is that of trustee 
(N. H.) 816c, (N. J.) 830a, 830c. —is more than that of trustee if bank agrees to re- 
pay deposit (Me.) 460a, 464b, 464c. 

Title to general deposit passes to bank (Haw.) 179c, (Ky.) 354d, (N. C.) 1103e, (Tenn.) 
1301b. —of money passes to bank (Ark.) 54c, (Fla.) 136b, (Ind.) 268b, 271c, (Kan.) 
312a, (Mass.) 553b, (Mich.) 610a, (N. Y.) 1043c, (N. C.) 1109a, (Wash.) 1383d. 
—of checks, passes to bank (N. Y.) 1004d, lOSOd. 

Gift (see Gift) 

is e;ffected by delivery of passbook (Mass.) 555a, (Vt.) 1364a. —z/ deposit was in donee's 
name (N.Y.) 1015a, and subject to donor's order by stipulation (Mass.) 571a; or if 
accompanied by instructions to bury donor and keep balance of deposit (N. Y.) 1091c. 
—if accompanied by order and notice to bank (Mass.) 555b; by order, request to 
make payments, and the making them (Me.) 489e ; by words of gift in expectation 
of death (Conn.) 124a, (N.Y.) 1027e; by assignment (N.Y.) 1032d. —2« joint names 
of donor and donee (Mass.) 589a. 

is effected by mere direction to cashier to enter a deposit payable to another, and entry 
(N. Y.) 1084c. —by delivery of receipt of deposit with order for payment (Wis.) 1414b. 

requires delivery of passbook (N. Y.) 908a. —though deposit is in claimant's name 
(Me.) 490c, (Mass.) 576a, (Vt.) 1358e; or in claimant's name and he has permission 
to exercise control (Mass.) 588b. — where deposit is in joint names of depositor and 
claimant his wife (Cal.) 94a; or is in joint names of depositor and claimant, "pay- 
able to survivor" (Mass.) 589c; or claimant has no knowledge of deposit (Mich.) 632a. 
— and intention to make gift (Me.) 487b. 

is not effected by depositing in name of another without his knowledge (Me.) 487d, 
488a. —without his knowledge or possession (Conn.) 122c. —without his knowledge, 
and surrender of control (Me.) 485c, 485d. — without surrender of control (Haw.) 
179b, (Me.) 484d. —without intention (Mass.) 586c. 

is not effected by entry to depositor and M or survivor, without M's knowledge (Me.) 
489c. — mere direction to deliver funds after depositor's death (Cal.) 88c, (Mass.) 
575a, (Me.) 487a, (Mo.) 772b, (N., Y.) 1052e. 

is not invalidated by failure to deliver book (Me.) 485e. —failure to draw before donor's 
death (Mass.) 555a. —donor's subsequent declarations (id.). 



66 BANKS AND BANKING 



DEPOSIT— Continued 
Gift (continued) 

No mere contract with bank can be the subject of a gift causa mortis (Mich.) 605a. 
There must be delivery o/" subject matter (Pa.) 124.2b. —certificate of deposit (111.) 233c. 

Husband and Wife 

Deposit by husband, in his name, may be drawn on by him (N. Y.) 1053c. 

Deposit by husband in zvi/e's name, of wife's money, to be drawn on by him, is payable 
to him (Tex.) 1341b. —is payable to him (Tex.) 1336b. —is payable to him by 
statute (Mo.) 708b. —is liable for his debts (Kan.) 315a. -r-may be shown, after 
her death, to be his (Mich.) 612d. — to order of either does not become absolute prop- 
erty of wife (Ala.) 39a. — o/" wife's money, admittedly hers, is payable to her (Mass.) 
578d. — zviih delivery of passbook to her, is payable to wife (Mass.) 557b. — is pay- 
able to wife, though bank had agreed to pay checks drawn in her name (N. Y.) 1003b. 

Deposit by wife in her own nam.e is not presumed to belong to husband (Ark.) 54b. 
— is hers by contract with bank, though money belongs to husband (Mass.) 594c. 
—passes instantly to husband (Ky.) 371b, notwithstanding G. S. Ky., sec. 16, Art. 4, 
ch. 52 (id.) . —is payable to her, though agent of husband (N. Y.) 861a. —where special, 
is her property, not deliverable to husband on her death (N. Y.) 1016a, though he 
is heir to part of her estate (id.). 

Joint deposit, payable by law to representative, cannot be drawn by husband on wife's 
death (N. Y.) 1095a. — "fo be drawn by either," husband retaining passbook, is 
payable to his personal representative (N. Y.) 908a. —not payable to husband on 
wife's death (Cat.) 94b. — not payable to wife on husband's death if teller had notice 
(Md.) 511a. — may be pledged by wife (N. Y.) 1059c. —does not belong to husband 
(id.), —goes to survivor (N. Y.) 1064b. — with power to either to draw, goes to sur- 
vivor (Mass.) 586c. 

Where wife presents husband's passbook, bank must require check (N. Y.) 977c. 

Wife cannot make husband's property her own by depositing it in her name after his 
death (Mass.) 551d. 
Interest 

may be paid by bank (N. Y.) 1023b. — by bank when so provided in passbook (111.) 

241a. —by state bank by Act of 1794 (Minn.) 653c. 
cannot be recovered against bank on general deposit, except by special agreement (Pa.) 
1244c. — on deposit accepted ultra vires (Mass.) 588a. — where funds are not dis- 
turbed by forged indorsement of check (Ga.) 166c. — on oral demand (Ind.) 275e. 
— on certificate of deposit claimed by payee and indorsee (Wyo.) 1431b. — on savings 
bank deposits over amount limited by law (N. Y.) 1045a. 

runs from demand oi deposit (Cal.) 78b, (N. H.) 813c, (W. Va.) 1391a. —unless bank's 
condition excuses (Colo.) i06c. — though refusal is based on non-production of cer- 
tificate (Mass.) 584b. —of special deposit (Cal.) 83c. —of overdraft (Mass.) 536a. 

runs from, suit against insolvent bank for deposit (Mass.) 532d. — service of answer, 
where deposit is set off against note (N. Y.) 1068c. 

Contract for interest does not change character of deposit (N. Y.) 985b. — jV/^^a/ interest 
does not entitle bank to retain principal (N. H.) 819c. 

Lien (see Lien) 

Bank has lien on deposit for debts of depositor (N. Y.) 1080c. — of corporation, for 
notes discounted and due before receivership (N. Y.).1075d. 
Bank has no lien on deposit for advances which are not due (Mo.) 754a. 
Deposit may be made subject to lien for future acceptances (N. Y.) 996c. 
Notice to increase deposit, as condition of receiving accommodation, creates no lien (Mo.) 
754a. — to use part of deposit to pay note, gives payee no lien (N. Y.) 954b. 

Loan 

of public money (see Public Funds) . 

Deposit payable with interest is a loan (N. Y.) 904c. — on bond of bank, with guar- 
antors, is a valid loan (N. Y.) 1023b. — special, turned into funds of bank is a loan 
(N. H.) 819a. 

Where bank holds money of a savings bank and pays interest by agreement, there is 
no loan (N. Y.) 978c. 

Overdraft 

is a loan (Mass.) 536a; contra, (Me.) 470b. —a loan, if bank [consent (Colo.) 100b. 

— not fraud (Mass.) 526a. -fraud if on savings bank (Cal.) 68c. 
m.ay be recovered (Me.) 470b. — where bank has no notice not to pay (Mich.) 607b. 

— against maker of note to secure advances, where principal enjoys proceeds (la.) 

293a. —though credit was allowed by cashier largely for his own benefit (Mich.) 

633c. —by national bank out of security (N. Y.) 1024d. 
cannot be recovered where drawn under power of attorney with connivance of bank's 

clerk (N. Y.) 928c. —against guarantor by one not known to him (111.) 241c. 
Bank is not responsible for the disposition of funds paid out on overdraft (la.) 293a. 
A deposit to overdrawn account is legal (La.) 433b. 

Depositor, receiving benefit of agent's overdraft, cannot deny authority (S. C.) 1273a. 
Power of attorney to draw or indorse checks does not authorize overdraft (N. Y.) 928c. 



INDEX 67 



DEPOSIT— Continued 
Overdraft (continued) 

J?. S., ch. 77, sec. 19, requiring loans secured, does not apply to overdrafts (Me.) 470b. 

Passbook (see Books) 

and order are not negotiable (Conn.) 123c. 

is not negotiable and possession gives no right to draw (N. Y.) 1018b. 

need not be delivered to pass title (Me.) 485d, (N. Y.) 1040b, 

Ad-ministrator accounting for loss of passbook is entitled to deposit (R. I.) 1254b. 

Entries of credit are not written evidence of payment within 10 year limitation (Mo.) 
765d. 

Indemnity on loss of passbook is not necessary in absence of adverse claim (R. I.) 1254b. 
— required by subsequent by-law, is not necessary where book issued on prior de- 
posit is destroyed by fire (Mass.) 596a. — is not necessary, after several years have 
passed (N. Y.) 1088e. 

Paying money on book without examining signature is negligence (N. Y.) 1047 d. —pre- 
sented by thief, signature doubtful, is negligence (N. Y.) 1054c. — of daughter, presented 
by father, shows lack of due care (N. Y.) 1095d. — to Aolder ansv/mng test questions, 
shows due care (N. Y.) 1075b. 

J?ule of bank thai payment to holder of passbook discharges bank is invalid (N. Y.) 
941c. — binds depositor agreeing to it (Vt.) 1361c, and his administrator (N. Y. ) 
905b. — does not apply after decease, where legal representative is entitled (N. Y.) 
1037e. — requires good faith (N. J.) 846a. — requires care in identifying presenter 
(N. Y.) 1027a. — requires good faith and reasonable care (N. H.) 815d. — requires 
care of prudent person (N. H.) 818d. — requires due care (N. Y.) 1066d. 

Rule that book must be produced justifies refusal to pay on order alone (Me.) 489d. 

The writing up and return of passbook with vouchers is a statement of claims on bank 
(Mo.) 755a. 

Where notice of loss is required, savings bank using due care is not liable for payment 
to one presenting passbook (Me.) 479b. 

Payment 

as used in by-law, does not mean any sum the savings bank may choose to disburse 
(N. Y.) 1018b. 

is effected by giving the depositor foreign exchange (Ala.) 32b. — crediting depositor's 
account with amount of another depositor's check (Ala.) 31a. -paying check (Cal.) 
75d. 

is not effected by giving a part of deposit in fall settlement (Neb.) 794d. — something 
which depositor has not agreed to accept as money (Ind.) 275b. — Confederate notes 
for deposit in gold (La.) 429a. 

Adverse claim need not be protected in suit known to claimant (Mich.) 608a. — made 
known by telegram, binds bank (Mo.) 766b. — not affected by savings bank's quaUfied 
acceptance of order (Mass. ) 552c. 

Age or ignorance of depositor does not bind bank to ascertain his sanity (N. Y.) 1014b. 

Bank mmt pay depositor or order (Ark.) 54b, (Conn.) 115e, (D. C.) 130b, (111.) 186a, 
187c, 210c, 214d, 238b, (Ind.) 277c, 279b, (N. J.) 843b, (N. Y.) 1021c, (N. C.) 1107d, 
(Pa.) 1224b, (Tex.) 1341b. —only, or to his order (La.) 445d, (Mass.) 591c, (N. Y.) 
951b. —not secret cestui que trust (N. Y.) 1010c. — z/" in funds (Mo.) 713d, 714a, 
718c. — in full (N. H.) 815e. — where deposit is " subject to check, " at any time dur- 
ing banking hours (Ga.) 179a. 

Bank is protected in paying depositor (N. Y.) 1086b, (Pa.) 1215a, 1244c, until notice 
of transfer (R. L) 1249c. 

Bank's implied contract is to pay in funds equal to those deposited (N. C. ) 1107d. — on 
depositor's order (Tex.) 1341b. — in sums as drawn upon (111.) 187c. — checks drawn 
on deposit (111.) 186a, 214d, 238b. —checks, if in funds (Mo.) 713d, 714a, 718c. 

Bank must pay deposit in coin or value (111.) 187b. — in gold, if deposit was special, and 
in gold (Md.) 504a. — to depositor or order (Ark.) 54b, (N. J.) 843b. —to deposit- 
or's otAer (InA.) 279b, (N. Y.) 1021c. —on demand (Ind.) 277c. —infill (Neb.) 
794d, (N. H.) 815e. 

Bank may pay deposit of gold in any lawful money (La.) 428e, but not in Confederate 
notes (La.) 429a. —in funds current at time of demand (D. C.) 130b; at time and 
place of deposit (La.) 429b. 

Bank need not pay secret cestui que trust (N. Y.) 1010c. — anyone but depositor (Mass.) 
591c. —on oral order (Ind.) 259e. 

Bank cannot question depositor's title (Dak.) 126c, (Pa.) 1214a, 1224b, without showing 
true owner (N. Y.) 1039a. — without pleading its prior claim or declaring other claim- 
ant and his grounds (Kan.) 341a. 

Bank may assume that depositor is owner (N. Y.) 1086b, (Pa.) 1215a, 1244c. —until 
notice of transfer (R. L) 1249c. 

Bank is bound to know depositor's signature (Ga.) 167a, (111.) 199b, (Ky.) 366a, (Md.) 
504c, 508c, (N. Y.) 998b. —to know state of account (Md.) 511c. —to account for 
deposit (Mass.) 542a, (N. C.) 1105b. —to inform depositor of its financial condition 
(N. Y.) 948a. 

Currency, not depreciated, is payable at par value (111.) 188a. —depreciated, is payable 
at market value (id.), —stipulated for, but no longer current, is payable in specie 



68 BANKS AND BANKING 



DEPOSIT— Continued 
Payment (continued) 

(N. C.) 1107c. — of federal government to value of deposit when made, may be paid 
where deposit was not accepted on specie basis (S. C.) 1264d. 

Custom cannot be departed from by bank, without notice to depositor (S. C.) 1269d. 

Death ai depositor makes deposit payable to legal representative alone (N. Y.) 1037e. 

Deposit is payable only to depositor, attorney or legal representative (Conn.) 115e. 
—on depositor's order (La.) 445d. —to depositor (N. Y.) 951b. 

Insanity of depositor makes payment to committee in lunacy valid (N. Y.) 1020c. 
— makes payment of subsequent check invalid (Ga.) 174b. 

foint deposit not drawn for 16 months may be demanded by depositor (Kan.) 326c 
— where "either to draw" is written in passbook, passes no title (Pa.) 1242b. —is 
payable to survivor (N. Y.) 1014a, or the personal representative of decedent (N. Y.) 
1004a. —paid to one without other's consent, contrary to agreement, makes bank 
liable for other's actual loss (Mass.) 591b. —paid to survivor, does not make bank 
liable to decedent's creditors, though in violation of court order (N. Y.) 1014a. —goes 
to survivor, though not possessed of passbook during decedent's life (N. Y.) 1064b. 
—by executors, cannot be paid out on check of less than whole number (La.) 454b. 

Mistake of law prevents recovery of voluntary payment (N. H.) 819d. 

Notice of claim makes payment at bank's risk (Miss.) 691c, (Pa.) 1198b. —at bank's 
risk if reasonable time be not allowed (Mo.) 766b; but payment without notice of 
owner's claim, protects bank (Ind.) 259e, (la.) 308a; though deposit was proceeds of 
fraudulent pledge (N. Y.) 1062a. 

Power of attorney from depositor's administrator is not conclusive of right to deposit 
(N. Y.) 1044b. 

Pro ianio payment is effected by applying partnership funds to debt with knowledge of 
retired partner (Mo.) 747c. 

Refusal to pay depositor in person is not slander of credit (111.) 243a. — makes bank 
liable, if firnds are sufficient (Neb.) 803a. — checks on good account is legal mahce 
(lU.) 220b. —gives im.m£Aia.te. right of action (Cal.) 69c. — checks does not make bank 
liable for damages for depositor's arrest for fraud (Neb.) 784b. — check, through mis- 
take, gives depositor right to non-punitive damages (Ga.) 171b. — special deposit is 
prima fade evidence of conversion (Tenn.) 1303b. 

Refusal to pay is justified by showing adverse claim of true owner (Pa.) 1244c. —pay- 
ment under military order (La.) 428b, with acquiescence for nine years (La.) 445c. 
— court order prohibiting payment (N. Y.) 1095c. 

Refusal to pay is not justified by showing unlawful purpose in use of funds (Cal.) 75d. 
—^<2j/OTf«^ to sheriff under a levy (Kan.) 312a. — custom to pay on order apparently 
genuine (Conn.) 115e. — rights of third persons (N. Y.) 925d. — custom, to refuse 
to pay without indemnity, on unsatisfactory signature (Mass.) 542a. —payment 
to administrator of one ■ supposed to be dead (Mass. ) 545c. —paym.ent to adminis- 
trator, bank knowing of gift (Mass.) 555b, (N. Y.) 1027e. —failure to demand or 
issue vouchers (Tenn.) 1296a. —paym.ent on forgery, without depositor's negligence 
(Ind.) 274b. 

Trust funds may be paid to depositor's order, though bank knows of trust (Wyo.) 1430b. 
—in absence of notice of intended misappropriation (Ga.) 168b. 

By Personal Representatives 

becomes property of bank (N. Y.) 1039c. 

■may be made to personal account (Pa.) 1246c. — subject to individual check (Ga.; 174b. 

in representative capacity, is not subject to individual check (Ohio) 1162d. -payable to 

depositor's receiver as an individual (N. Y.) 926b. 
belongs to depositor, where he is sole legatee (N. Y.) 1052e. 
Public Funds. See Public Funds. 

Eeceipt 

Bank may refuse to receive special deposit, once withdrawn (111.) 185b. 
The proper officer to receive deposits is cashier (111.) 180b, (Mass.) 588a. — is not the 
teller, who takes them at customer's risk (D. C.) 132c. 

Setoff 

After bank is insolvent depositor may set off deposit against debt due bank (111.) 187a. 
— ze/Aer^ state deposit is in agent's name (Mass.) 536b. -ron note (Ky.) 371c, (Neb.) 
792b, (Tenn.) 1302b. —on bill of exchange (Ky.) 353d. —on unmatured notes (N. Y.) 
1064a, (Pa.) 1246e. — on note without demand (Md.) 515b. — where deposit was 
made to pay debt (Conn.) 121a. 

Assignee, before bank known to be insolvent, may set off deposit against debt (N. Y.) 
1058a. — of certificate of deposit may set it off against mortgage debt assumed by 
him to insolvent bank (Neb.) 788b'. — before restraining bank, may set off against 
bank without giving notice of assignment (Mass.) 565c. — taking at a discount can- 
not set off against bank after its insolvency (La.) 447c. — of part of deposit can- 
not set off against note transferred by bank, though holder has notice (Ohio) 1150b. 

Bank may set off deposit against debt (111.) 213a. —debt due (N. Y.) 1050b. —debt 
not due, where deposit is not a trust (la.) 301a. — debt not due, if depositor is insolvent 
(Minn.) 654b. —debt of insolvent, though deposit is in wife's name (Kan.) 315a. 



INDEX 69 



DEPOSIT— Continued 
Setoff (continued) 

— debt of insolvent, deposit being made before legal proceedings unless there was fraud 
(Mass.) 586b. —debt of insolvent corporation (Ga.) 170a. —debt of depositor guilty 
of fraud (N. Y.) 1009c. — debt due from depositor in his action for damages (Ky.) 
371c. — assignee of cashier, though setoff was not claimed before bank's assignee in 
insolvency (Mo.) 722d. —cashier's indebtedness pending suit on his bond (Mo.) 722d. 

Bank may set off deposit against note paid by bank (111.) 227b, (Ind.) 271c. —payable 
at bank, and paid (N. Y.) 907c. —past due, where it exceeds deposit (Mo.) 727a. 
— not due where depositor is insolvent (Mass.) 538b. — of deceased husband, though 
deposit is transferred to wife (N. J.) 840d. — of deceased depositor, where deposit is in 
agent's name (111.) 214c. — o/"a:£^?«z'«?'rfrafor of deceased depositor (Wis.) 1425b. 

Bank may set off credit of note discounted on false statement to mercantile agency (N. Y. ) 
1102a. — check charged back by agreement as uncollectible (Pa.) 1224a. 

Bank cannot set off against claim for deposit an unmatured demand (Wis.) 1413d, with- 
out agreement (Mo.) 754a. — by administrator, debt not matured in decedent's life- 
time (N. Y.) 983a. — a draft, under agreement between depositor and third person 
(Ind.) 251d, (Mo.) 698a. —a note not due (Mo.) 714a. —a moHgage (Cal.) 86b. 
— if specific, a debt due bank (Ind. ) 261b. — if specific and fraudulently charged, a debt 
due bank (N. Y.) 1059a. — a deposit transferred to and drawn by one whose checks 
transferrer had forged and bank paid (N. Y.) 1010a. —by assignee for creditors, a 
debt of insolvent to bank (Miss.) 688b. —forged draft, without showing negligence 
(N. Y.) 882b. 

Depositor cannot set off deposit against debt due bank (N. H.) 816a, 831c. — on mortgage 
after insolvency (N. J.) 833b. — on indorsem.ent as surety on note (Ky.) 371d. 

Depositor may set off deposit in an action by bank (N. Y.) 1050b. — on a note (Md.) 492c. 

Partner may set off firm deposit assigned to him against individual debt to insolvent 
bank (Pa.) 1246e. 

Special 

arises from deposit by trustees for annuity (N. J.) 832b. — by indorsers of note, with 

instructions not to apply to note (N. Y.) 957a. —of draft for collection (N. J.) 

846b. 
is a loan if turned into funds of bank (N. H.) 819a. 
does not change title (Ind.) 247b. — z/" mingled intentionally by cashier (111.) 212a. — if 

kept separate, though liearing interest (Cal.) 72d. 
Special depositor is not a general creditor (Cal.) 83c. 
Bank is liable for cashier's conversion, if benefited by deposit (N. Y.) 1026a. —for 

cashier's conversion if benefited by his act (Pa.) 1219b. —to owner for permitting 

conversion by his attorney (Mich.) 609d. —for deposits received from succeeded bank 

(HI.) 219d. —o«/j/ under the special agreement (111.) 241b. —on the contract, though 

receiving vsrithout authority (Mass.) 521c. 
Mere failure to return deposit is not conversion (Mass.) 549d. 
Bank is discharged by depositor's ratification of bank's transfer of deposit (Ky.) 359c. 

— seizure of deposit by military force (Tenn.) 1303b. — restoring deposit (La.) 449c; 

but not by payment of checks and striking balance (Md.) 503a. 
National banks are not liable for special deposits (Vt.) 1356d, 1357c. 
Bank must exercise care that men of common sense use in managing their own property 

(Ga.) 169d. — that good business m.en would give (111.) 224a. — that ordinary m,an 

would use toward his own property (Ohio) 1156b. — that bank would use toward its 

own property (Pa.) 1205a. 
Bank is not liable without negligence (Pa.) 1206c. 
Bank is liable for negligence (Me.) 481a. ^or gross negligence (111.) 224a, (Pa.) 1208a. 

—/or gross negligence only (Ga.) 169c, 169d, (Kan.) 312d, (Ky.) 359c, (La.) 433d, 

(Mass.) 549d, (N. Y.) 971b, 992c, (Pa.) 1199a, 1203c. —for gross negligence or 

fraud only (Mass.) 521c. 
Bank as gratuitous bailee, is liable for same care it would use in its own affairs (N. C.) 

1107d, (Yt.) 1358c. — gross negligence (Ga.) 159a. —gross negligence only (Pa.) 

1209d. —fraud or gross-'^^^ligence only (Yt.) 1358c. 
Bank, a gratuitous bailee, Jl^f °J liable for stolen bonds without negligence (Pa.) 1213c. 
Savings bank is not liable ,Tor fuiids deposited specially without its knowledge (N. H.) 

818b. —for unauthorised act of officer, where it is not authorized to act as bailee, 

(N. H.) 818b. ■;', 

// is gross negligence for bank to leave bonds in open safe near door, where they cannot 

be continually watched /N. Y.)'992c. 
Measure of damages for faitti& to redeliver coin in specie is the full value of deposit 

(Ind.) 258e. 

Specific 

National bank may take specific deposit (la.) 286d. 

Bank cannot apply deposit contrary to instructions (111.) 234b, (Minn.) 648d, (Miss.) 

686a, (Mo.) 729c. —money contrary to depositor's directions (111.) 213b, (Mich.) 
628e, (Mo.) 754b, (Pa.) 1184d. —proceeds of check to another purpose (N. Y.) 

1013e, 1035b. —circulating notes to another purpose (N. Y.) 894a. — stock tickets 
deposited for assignment to debt of assignee (111.) 228b. 



70 BANKS AND BANKING 



DEPOSIT— Continued 
Specific (contintied) 

Bank may zfflzV^ written by accepting verbal instructions (Miss.) 691c. 

Bank is liable for stock left for sale (N. Y.) 976b. —for bonds deposited as collateral, 
though debt be paid (Md.) 507c. —for bonds left for sale (Mich.) 624d; or for 
exchange (N. Y.) 978a. —for Confederate and state notes not applied according to deposi- 
tor's direction (Miss.) 686a. 

Cashier's receipt for bonds held as collateral does not increase bank's common law lia- 
bility (Me.) 480b. — binds bank to performance of condition of deposit (S. C.) 1272a. 

Bank is liable for failure to use reasonable and ordinary care in keeping bonds (N. Y.) 
1034c. —for negligent loss of bonds (Me.) 481a. 

Measure of damages for bonds stolen is value at time of theft (Md. ) 507c. 

Bank must return deposit when purpose fails (111.) 234b, (N. Y.) 1028c. 

Bank cannot mingle deposit with its own funds (Mo.) 727d, 731a, (N. Y.) 1028c. 

Bank becomes depositor's agent (N. H.) 816a, to apply deposit (Mich.) 606c, (S. D.) 
1283b. — trustee, where deposit is received for investment (Mo.) 727d. 

Deposit to secure discount of note cannot be withdrawn if discount unpaid (Minn.) 658c. 

Deposit as collateral is not a gratuitous bailment (Md.) 507c. — is consideration for bank's 
promise to apply (Ind.) 261b. 

Deposit to be applied for another's benefit does not make bank liable to him (Kan.) 319a, 
(Mont.) 770b. —is revocable (Kan.) 319a, 319b, (Pa.) 1218c; contra, where draft 
was accepted as cash with promise to pay depositor's debt (Pa.) 1181b. 

Agreement to keep deposit to meet return draft is not invalidated by deposit's falling at 
times below amount of draft (Mich.) 621e. 

Debtor cannot by deposit make bank agent of creditor (N. J.) 835c. 

Public Funds — see Public Funds 

Statute of Limitations 

not created by notice in passbook to tell of error within limited time (N. Y.) 1076b. 

runs from demand (N. Y.) 1073b, (Pa.) 1220a. —o/' general deposit (Ga.) 168b. — and 
refiisal (Vt.) 1362a. — made ajfter discovery of forgery (N. Y.) 1006c. 

runs from discovery of mistake in entry (la.) 311b. 

of two years 3.-p^e.s to deposits (N. Y.) 1087a. 

of 10 years, does not apply to entries of credit in passbook as written evidence of pay- 
ment (Mo.) 765d. 

Trusts— see Trusts 

Withdrawal 

may be made under general power to manage fiinds (Ga.) 158c. — by insolvent debtor 
before assignment and debt due (111.) 221a. — in parcels (111.) 186a. — according to 
by-laws of savings bank (Pa.) 1210c. — of school money only in statutory manner 
(Neb.) 774a. 

by maker of note, is evidence that deposit was for credit, not payment ( Cal. ) 71e. 

Agreement as to withdrawal made with clerk, not entered in passbook, does not bind 
bank (N. Y.) 1014b. 

Bank informing claimant that money has been paid out waives notice of withdrawal 
(N. Y.) 1014b. 

One withdrawing full deposit does not waive share in surplus (N. H.) 818a. 

DIRECTORS 

Actions against directors 

for loans violating statute are quasi ex delicto and prescribed in one year (La.) 448d. 
for loss of deposit through neglect or mismanagement are in tort (N. C.) 1121b. 

are maintainable by any stockholder in his own name in equity on cause of action exist- 
ing in corporation, where directors' conduct is injurious to corporation (S. C.) 1273c. 
— of national bank, for all, in equity, making bank or receiver defendant, on refusal to 
sue, where directors still control (N. Y.) 1002a. — :/bi{-^mismanagement, without refusal 
by bank to sue, where directors still control (N. Y.)l/ 9d. — in bank's name, making 
receiver defendant where he is himself a director anu__^ses to sue (Mich.) 631c. — 
although he has received illegal dividend (N. Y.) 886c. '!^^:r creditor injured by neglect, 
mismanagement or fraud (N. C.) H21b. » ' ; .' 

are maintainable by depositor, in tort, without allegation {of bank's or receiver's refusal 
to sue (N. C.) 1121b. ' ■'' 

are maintainable by receiver for gross negligence (In4.]L 2S,2a.. -for statutory penalty 
under Act of April 21, 1825 (N. Y.) 863b. -:/o?*'"allf)wing indebtedness to bank in 
excess of statutory limit (Mo.) 737c, 738a; only at law, in absence of statiitory pen- 
alty (Mo.) 737c. 

are maintainable by judginent creditor where execution is unsatisfied, for breach of trust 
(Ga.) 150b. 

are maintainable by bank, for negligence, only at law (Tenn.) 1311c. 

are maintainable by com.tnissioners for liquidation, for maladministration, in case of 
former directors (La.) 404b. 

are not maintainable under certain statutes (Cal.) 74d, (Va.) 1371a. — by stockholder, 



INDEX 71 



DIRECTORS— Continued 
Actions against directors (continued) 

for individual damage (Ohio) 1163d; fornegligence in conduct of affairs (N. J.) 835b; 
for amount of assessment against him as stockholder, until actual payment, where 
he was induced to become stockholder through directors' fraud (N. C.) 1124c. — by 
depositor, at common law, for loss of deposit received by open insolvent bank (Mo.) 
718b. — by receiver to enforce stockholder's remedy for deceit (N. C.) 1134c. — by 
bank to recover amount of proper disbursements (Ala.) 15c. — ^rnegligence, after bill 
in equity for same cause (Pa.) 1219d. 
for negligence survive (N. Y.) 1071b. 

Information against savings bank director, under Act of February 24, 1816, is available 
remedy for issue of certificates of deposit on notes or checks in violation of by-laws 
(Ya.) 1370b. 

Actions by directors 

are permitted after expiration of charter providing for continuance of corporate existence 
to settle affairs (Tenn.) 1287b. 

Appointment 

of director to fill vacancy is not election under Code (Cal.) 75a. — cannot be questioned 

by debtor of bank (Me.) 468a. 
of some directors and election of others create but one body (La.) 389a. 
by directors, having discretionary power of officers, not in accordance with by-laws, may 

be questioned by stockholders alone (Pa.) 1174b. 

Authority of directors 

of national bank is limited to powers expressly conferred or necessarily incidental to 
banking business (Vt.) 1357c. 

includes power to transfer stock (N. Y.) 914b. — to determine who shall be stockholders, 
where determination necessary to effect charter ends (La.) 380a. — to withhold divi- 
dends for purpose of promoting sale of state bonds held by bank (La.) 377b. — to 
make assignment, if authorized generally to manage affairs (Pa.) 1180c. — to delegate 
powers to special committees of their number, in business transactions (N. Y.) 888b; 
or in mortgaging or alienation of real estate (Mass.) 530b. — to make submission to 
referee, where they are appointed to settle bank's affairs (Me. ) 465d. —to direct trans- 
fer of note to trustees for stockholders (Me.) 467a. — under discretionary charter 
authority to determine security for officers, to accept security not in accordance with 
by-laws (Pa.) 1174b. — to authorize officer to assign notes payable to bank (Mass.) 
518b. — to vest power to indorse in another than cashier (Md.) 500b. — to cancel 
cashier's bond, acting with president (Me.) 466a. — under discretionary charter power 
to dispose of funds, to buy and sell stock of their own bank on its account (Ohio) 
1133b. 

does not i«c/afife /oze/i??' to advise transfers of stock (Vt.) 1350a. — fo compel stockholders 
to consent to increase of capital (111.) 233d. — to contract for bonus, under charter 
power to fix salaries (111.) 233d. — to delegate power to discount to president or 
cashier (La.) 378c. — to bind bank on forged notes (Mass.) 520e. — to use funds for 
other than banking purposes, in case of directors of national bank (111.) 221c. — to 
authorize president to release debt without consideration (Va.) 1374b. —prima facie, 
to donate bank funds (111.) 221c. 

passes in all respects to receivers, under act continuing bank as corporation, though pro- 
viding for liquidation and receivers (Ark.) 45a. 

to remove president, given by articles of incorporation and statute, prevents court from 
passing on expediency of removal (N. Y.) 933b. 

Bank 

is bound by acts of directors within their authority (Ga.) 147a. —act of de facto direc- 
tor (Pa.) 1172c. — acts of directors of national bank in handling funds, only when acts 
are confined to express purposes for which bank was incorporated, or those incidental 
thereto (Neb.) 782d. — acts of directors, though one of them was appointed in ac- 
cordance with by-laws never approved by Comptroller (N. Y.) 933b. ^directors' ratifi- 
cation of president's issue of script, and stockholders also bound (Mo.) 737b. — direc- 
tors' failure to repudiate cashier's tortious acts of which they know or should know 
(Ga.)148b. 

■may be sued directly for injuries caused by directors (Pa.) 1188a. 

is not bound by acts of director, acting for himself in discounting note (N. J.) 881a. 
—mortgage signed by officers without directors' authority (N. J.) 823c. —director act- 
ing as agent for applicant for discount (Mass.) 528a. — director's agreement to com 
pound a felony (Mich.) 627d. 

Board of directors 

cannot be bound by one director (Miss.) 666c. —president or cashier, where committee of 
directors agrees to contract subject to board's approval (Md.) 505c. 

is only body before which bank can transact business (Colo.) 106b. 

is not assembled as such, when notice of meeting has not been given to non-resident mem- 
bers (Utah) 1344b. 

can give authority to release bank's claim (R. I.) 1252a. 



72 BANKS AND BANKING 



DIRECTORS— Continued 
Board of directors (continued) 

need not be applied to as a prerequisite to purchase of bank's property (N. Y.) 883c. 
— as an entirety in employing agent for bank (Vt.) 1355b. 

Compensation 

is not due directors (Cal.) 74c, (Ky.) 364b, (N. J.) 823b. 

is due director for services rendered before he became director, under then existing laws 

(Ala.) 15c. 
of officers may be fixed by directors, and payment under their resolution by cashier is 

lawful (Ark.) 45b. 
of president, being discretionary with directors, their decision though unreasonable binds 

him (Me.) 476c. 
extra, for director, is ultra vires, when compensation fixed by statute (Ala.) 16a. 
of individuals for services, is not precluded by their being directors (N. J.) 823b. 
of cashier, charged in accounts, is acquiesced in by directors, though not voted (Cal.) 

70a. 

De facto officers 

include directors coming into office by forms of law, and they are subject to quo warranto 
(Ind.) 256b. —irregularity elected, but allowed to act (Pa.) 1172c. 

Declarations of directors 

are admissible in action based on directors' fraud (La.) 395d. 
as to past transactions are inadmissible against bank (Me.) 470d. 
subsequent to execution, in action on cashier's bond, are inadmissible (Me.) 469b. 
after bank's failure, and offers of stock refused by them, are inadmissible in action to 
enforce liability for receiving deposits in insolvent bank (Mo.) 745d. 

Defenses 

// is no defense in action on note that directors promised that payment would not be 
enforced (Me.) 465b. —held by bank, that it was indorsed by director contrary to 
charter provisions (Me.) 473a. 

Duty 

requires an ordinary degree of care (Ky.) 364b, (K. Y.) 1099d, (Tenn.) 1311c; unless 
suspicious circumstances demand higher degree (La.) 378c. — supervision (N. J.) 847c, 
of officers, with practicable diligence only (N. J.) 847c. —accounting for attorneys' fees 
in suit in which bank uninterested (Cal.) 80e. —inexperienced director to learn his 
duties, or refuse trust (N. J.) 847c. 

does not require directors ignorant of previous deficiency, to disclose to surety facts con- 
cerning previous bonds of cashier (Me.) 470c. 

Election 

of alien as director of corporation which has abandoned banking is valid under statute 

(La.) 418a. 
of any director for succeeding year is valid under charter provision for continuation of 

two-thirds only in office; continuation of more necessitates new election (La.) 389a. 
of directors is not subject to court's summary jurisdiction (N. Y.) 880b. 
of president by majority of votes cast, where majority of board are present and qualified 

to vote, is valid (Va.) 1372c. 
of one not stockholder , as director of national bank, is invalid by statute (Mass.) 581b. 
Failure to elect for five years, raises presumption that omission was intentional (Miss.) 

685b. — upon proper day being, by charter, no ground for dissolution, directors hold 

over until election (Ga.) 157d. 
Participators in election cannot maintain quo warranto (S. C.) 1262c. 
Stockholders, voting contrary to resolution, cannot object to directors legally elected by 

legal vote of minority (Mo.) 700b. 

Estoppel 

Directors are estopped to deny knowledge of by-laws (N. J.) 847c. 

Directors are not estopped to deny that they are stockholders (Tenn.) 1306b. — show 
lack of knowledge of bank's condition in action for deposit received after they signed a 
statement for state officer (Mo.) 763c. — deny knowledge of bank's condition when 
cashier's misrepresentations have induced them to buy bank stock (N. Y.) 934d. 

Evidence 

of director's acts is admissible to show fraud (Miss.) 693c, (N. Y.) 1093c. 

as to intention of fellow director is inadmissible as hearsay (Ala.) 19d. 

of loss to accommodation acceptor is not necessary to holder's recovery on note given by 

directors to secure surrender of drafts accepted for bank's accommodation (Mich.) 

602a. 
that directors, liable for bank's debts, procured surrender of drafts drawn by it raises 

presumption that it was done to prevent circulation or to anticipate liability on them 

(Mich.) 602a. 
that directors must have had knowledge of conversion of special deposit is sufficient 

(Ky.) 357d. 



INDEX 73 

DIRECTORS— Continued 
Evidence (continued) 

of official character of directors signing certiiicate must be shown (Ala.) 16b. 
By-laws are admissible to show that directors should have known of bank's insolvency, 
in statutory action against them (Mo.) 745d. 

Examinations 

ll^by state officials do not justiiy directors in omitting them (N. J.) 847c. 

Eraud 

of directors entitles stockholder to equitable relief without waiting for dissolution of 

corporation (Ohio) 1132d. 
of directors upon Secretary of State, may be shown by them in receiver's suit against 

them (Mo.) 763b. 
of director in discount transaction invalidates bank's title to bill of exchange (N. Y.) 

875c. 
of director in contract with bank being ground of action against him by assignee of 

bank, no rescission of contract is necessary (Mo.) 716b. 

Guaranty 

does not arise from directors' agreement to bear loss in unauthorized discount (Tenn.) 
1289c. 

Illegal acts 

Directors' declaration of illegal dividend is not excused by ignorance (N. Y.) 880c. 

— notes made to avoid the law and deceive state officer are void (Mo.) 763b. 
Note of directors, liable for bank's debts, given to secure surrender of unpaid drafts 

accepted for banks accommodation, is not given for illegal consideration, though bank 

unauthorized to issue bills (Mich.) 602a. 

Injunction 

against directors mismanaging bank, issues on stockholders' application without request 
for bank to sue (Cal.) 74c. 

Insolvent bank 

Directors may wind it up if admissible (N. J.) 824b. —take bill of exchange by bona fide 
transfer (Vt.) 1352b. — wa^e bona fide assignment notwithstanding stockholders' ob- 
jections (Mo.) 732c. 

Director of insolvent bank may not withdraw money after bank's insolvency, in claim 
that it belonged his firm (Pa.) 1229a. —knowing insolvency, take from cashier, 
discounted bills and notes of bank in payment of his deposits (W. Va.) 1394b. 

Director and stockholder of insolvent bank cannot set oif at face value against creditors, 
claims purchased at discount (Ga.) 160a. 

Insurers 

Directors are not insurers of honesty of bank officers (Ky.) 363a. 

Knowledge 

of illegal banking is necessary to sustain inference of directors' assent thereto (Mo.) 745d. 

want of, by two directors, of contract does not warrant inference that it was designedly 
concealed (Vt.) 1355b. — is no defense to liability for cashier's misconduct (N. Y.) 
993b. 

of director, not acting for bank, of original defects in note which he recommends to bank 
and purchases after discount does not bar his recovery upon it (Mich.) 612a. 

of directors of deposit, with acquiescence, implies contract (Pa.) 1205a. 

of unauthorized act of president of insolvent bank is not a ratification (Cal.) 88b. 

of teller's employment is not ratification of details of his agreement with president (N. Y.) 
960b. 

of president' s use of deposit certificates, may be shown (N. Y.) 990b. 

of fraud in note binds bank, if director acted for bank in discounting it (Mass.) 558d. 

vf officer' s fraud, as against his sureties, is not conclusively presumed to have accrued 
immediately upon commission (Ky.) 374c. 

of director of cashier's speculation, does not render him liable if officer is retained 
(N. H.) 820a. —must be guilty, under law creating liability for receiving deposits, 
knowing bank's insolvency (Mo.) 763c. 

Directors are chargeable with knowledge o/" bank's condition (Mo.) 739b, (Neb.) 771d, 
(N. Y.) 888b, 906a, (N. C.) 1121b. —bank usage, though having ceased to be 
directors or do business with bank (Me.) 475b. —what could have been learned 
by due diligence (Mich.) 622a, (Va.) 1379b. —deficiency appearing in cashier's 
accounts audited by them (Me.) 466a. —entries in subscription book showing 
them to be subscribers (Tenn.) 1302a. —truth or falsity of report published over 
their signatures, and such report is prima facie evidence (Ky.) 372c. 

Director is not chargeable with knowledge o/" value of stock (N.Y.) 913b. —all affairs of 
bank (R. I.) 1255b. 

Bank is not bound by knowledge of director (k\a..) 3a, (Conn.) 115d. —dealing as an 
individual (Ala.) 22a, (Mass.) 575b, (Neb.) 785b, (Vt.) 1364b. —unofficially ac- 
quired (Ga.) 177d, (N. Y.) 874b, 984d, 994e. — z/his interest is opposed to that of 



74 BANKS AND BANKING 



DIRECTORS— Continued 
Kaowledge (continued) 

bank (Mass.) 526c. — o/" unauthorized acts of bank's attorney (Ga.) 176b. — absent 
when discount is made (N. J.) 831a. — discounting paper payable to him and indors- 
ing it to his own account (N. C.) 1118b. — not acting for bank, as to good faith of 
public officers borrowing from bank (N. Y.) 1025e. 

Liability 

for using fuud to personal advantage is that of trustees (Cal.) 67a. 
for fraud or waste due to negligence is, independent of statute, that of trustees (Wis.) 
1424e. 

for mismanagement is for that occurring only during term of oifice (Me.) 479a. 

of directors and managers for negligence and mismanagement is common law liability and 

statute is not applicable (Wis.) 1428a. 
for stock illegally sold to bank is personal (La.) 379b; also for allowing statute to run 
against notes held by bank (Tenn.) 1302a; also for accepting notes for stock without 
charter authority (Tenn.) 1302a. 

of sister state creating director's liability for debts to which they assented is not penal 

and is enforceable for debt contracted in Vermont (Vt.) 1366b. 
for excessive indebtedness under incorporation act is penalty (Ohio) 1147a. 
for illegal dividend is indemnity to depositor (N. Y.) 1066a; to stockholder (N. Y.) 
1070d. 

for joint acts is joint and several (N. C.) 1121c, W2,2a.. 

statutory, for bank's failure to file report, begins with and continues during failure (Colo.) 
103c. 

for improperly declaring dividends, being penal, is not assignable (Wis.) 1427a. 

is a statutory specialty,, not penalty (Ga.) 144a. 

of "director who is not stockholder terminates at death (Tenn.) 1306b. 

of directors of savings bank conducting general banking business is that of partners 
(Ohio) 1156d. 

should be enforced in equity (Vt.) 1360b. 

may be enforced against one director (Ga.) 146c. 

Directors are liable to corporation not to stockholders (Mass.) 536c. — stockholders for 
want of ordinary care only (Pa.) 1229a. — stockholders not to creditors, for loss 
from negligence in turning over management of bank to cashier (Mo.) 759d. — stock- 
holder for fraud (N. Y.) 959b. — stockholder for negligence in not detecting fraud 
(N. C.) 1124c. —stockholder for refusal to declare dividend (N. Y.) 1054a. —depcsi- 
tors for misrepresentation as to bank's solvency (N. C.) 1121a, (Tex.) 1326b. — de- 
positors for negligence (111.) 213d. — depositors for acting for themselves prejudicially to 
depositors, when they know bank is insolvent (N. Y.) 1093c. — depositors for active 
misconduct (Tenn.) 1314b. — creditors notwithstanding secret agreement (Wash.) 
1388c. — receiver for buying note at less than face value from bank, which has stopped 
specie payment (N. Y.) 906a. — receiver for purchasing bank's property with its 
worthless stock shortly after having resigned from office (Miss.) 693d. 

Directors are not liable to bank for voting, bona fide, extra compensation to fellow- 
director (Ala.) 20e. — creditors (Mo.) 763c. — creditors at law, for mismanagement 
(W. Va.) 1392b. — cr^rfzVorjr after bank's suspension for losses from inattention (Tenn.) 
1319a. — billholders (N. Y.) 940d, after expiration of charter giving liability (Ga.) 
149c. 

Directors are liable for representations not known to be true (N. C.) 1121c, 1122a. 
—for false representations as to national bank's condition (Neb.) 802c, 805d. —indi- 
vidually for false representations of bank's condition and for misappropriation of 
assets (Miss.) 693c. — as sureties for false information as to cashier's transactions 
(La.) 378c. — severally for false reports made by them and officers of national bank 
(Neb.) 805d. —for negligence in duty of office (N. J.) 847c. —for gross negligence 
(Ind.) 282a, (Ky.) 364d, (Me.) 479a, (N. J.) 835d. -/or loss of deposit received in 
insolvent bank (Minn.) 654d. — individually for failure to oppose any illegal measure 
(La.) 378c. —for loss of assets, when assignee selected by bank, although ratified by 
legislature (Ga.) 152a. ^proportionately for gross errors and iljegal acts in absence 
of charter provisions (La.) 379b. -for debts of insolvent bank, if they are actually 
served with process (N. Y.) 867b. —for inferior officers' fraud or negligence, when 
they entrust bank's management to latter (Utah) 1343e. —;/or embezzlement of cashier, 
for whom they were surety, although former's bond was illegally canceled by di- 
rectors (La.) 379b. —for cashier's acts, which could be ascertained by reasonable dili- 
gence, when directors are members of committee to supervise discount (N. Y.) 1099d. 

Director's negligence is not excused by confidence in officer (N. J.) 847c. 

Directors are not liable in action for deceit, where report inflates resources and liabilities 
equally (Neb.) 805d. — on bills or transactions of bank organized under unconstitu- 
tional law (Mich.) 602d, 603a. — on unauthorized contract made by them innocently 
and without personal covenant (Kan.) 315b. ^/or costs of futile suit (Pa.) 1228a. 
-for misrepresentations in articles of association preceding their election (N. Y.) 
913b. — /or misrepresentations contained in report for comptroller, where they did not 
participate therein (Neb.) 803a. —for money loaned by savings bank unless security 
not worth double the loan (Colo.) 105b. -^r mismanagement until all bank's assets 



INDEX 75 



DIRECTORS— Continued 
Liability (continued) 

have been applied to debts and deficiency ascertained (La.) 377d, (Tenn.) 1290a. — 
/or interest on amount of liability, unless by statute (111.) 203b. — on ground of vio- 
lation of charter, until violation is established in direct proceeding against corpora- 
tion (Tenn.) 1290a. 

Disallowing to director defense of ignorance of bank's condition is constitutional (Okla.) 
1165c. 

Liability of directors engaged in general banking is not precluded by fact of corporate 
existence for operating savings bank (Ohio) 1156d. — of directors and stockholders 
of fraudulent bank is not enforceable at law (Mich.) 598c. —for fraudulent acts of 
officers may accrue to directors through their own bad faith or gross negligence (Ky.) 
363a. —for officer's defalcations does not extend beyond amount of his bond, when 
they exercise ordinary diligence (Ky.) 365a. 

Provisions of State Constitution holding directors liable for receiving deposits in insol- 
vent bank, are not self-enforcing (Mo.) 718b. 

Statute creating director's liability gives right only to those being stockholders at time 
of violation (N. Y.) 913b. 

Management 

is not divested from directors by state officer's possession of bank's property except to 
prevent disposition of it during proceedings for appointment of receiver (N. Y.) 1064d. 
is bad, when checking of accounts is left to employe who draws checks (N. J.) 847c. 

Manager 

should understand method of bookkeeping used (N. J.) 841a. 

investing in second" mortgage on land which is not worth twice the incumbrances, does not 
act illegaly (N. J.) 841a. 

of dank being also manager of milling company, his acts as such are not acts of bank 
(Tex.) 1331a. 

being sued for misfeasance, it is not necessary to join third persons, parties to trans- 
action (N. J.) 837e. 

causing maker to withdraw revocation by his false statements as to payee's insolvency 
renders bank hable (Minn. ) 640d. 

notified is notice to bank (Mich.) 611a. 

acting in good iaith, and for no personal benefit, breach of trust not fraudulent 
(N. J.) 835e. 

acts not ratified by release of third party (N. J.) 837e. 

not entitled to benefit of Statute of Limitations (N. J.) 839b. 

of savings bank is trustee and must exercise ordinary diligence (N. J.) 838a. 

Liability is incurred by misfeasance and fraud (N. J.) 837e. — is incurred by statutes for 
procuring deposit in insolvent bank by false statements as to bank's condition (Mo.) 
731c. — is incurred by participation in prohibited acts or neglect of measure of care 
prescribed by law (N. J.) 840c. — w incurred to depositor for losses through negligence 
(N. J.) 838a. —is incurred by making loan above charter limit, though no fraud 
(N. J.) 839c. — is not incurred for error in judgment or failure to use utmost care 
in making loan (la.) 304b. — is not abated by death where that of a wrongdoer 
(N. J.) 837e. —is not enforceable at law (N. J.) 839b; by depositors jointly, for 
misrepresentation (N. J.) 833d. — is not released by release of third parties (N. J.) 
837e. Grounds of liability stated (N. J.) 841a. 

Meeting 

of directors legally notified can give security by mortgage deed (Conn.) 111b. 
of directors is the place for conferring authority to indorse note (N. H.) 811a. 
Directors must act by assembled meeting (Minn.) 635c. 
Majority of qualified directors is necessary to quorum (Tex.) 1340d. 
Minutes of meeting are admissible to show what happened (R. I.) 1252a. 

Notice 

to director, acting as agent is chargeable to bank (N. Y.) 1068b. 

to board by one director, at regular meeting is notice to bank (Pa.) 1179a. 

to bank may be shown Ijy presence of directors at cashier's publication of offer (Pa.) 
1201b. — concerning authority of indorser accrues from director's knowledge of facts 
and his presence at discount (Mo.) 712a. 

to director is not notice to bank when not acting as its agent (N. Y.) 944c. —in col- 
lusion with defaulting cashier (Tenn.) 1312b. 

of dishonor is not dispensed with because of indorser's knowledge of non-payment, he 
being director of bank holding note (Tenn.) 1296c. 

Office 

of director of state bank is a public franchise (Ark.) 41c, and supreme court may issue 
writ for usurpation thereof (id.). 

Parties 

Necessary parties include corporation, in suit to enforce directors' liability (N. Y.) 867b 
959b. —all directors as defendants to assignee's bill for negligence and fraud (W. Va.) 



76 BANKS AND BANKING 



DIRECTORS— Continued 
Parties (continued) 

1394b, c, d. — all stockholders in suit against officers and directors or one in behalf 
of all (N. Y.) 959b. — all creditors, who must join in suit to wind up bank and charge 
directors under statute (Wis.) 1410b. 
Proper parties include representatives of deceased directors in action against directors, 
but they are not necessary (Ga.) 152a. — directors and stockholders participating in 
fraud, in equitable action by stockholders for relief against director's fraud (Ohio) 
1132d. 
Unnecessary to join all fraudulent directors of insolvent bank in suit for breach of trust 
(N. Y.) 867b. —all stockholders as plaintiffs in action by stockholder against direc- 
tors for violation of duty (Vt.) 1353a. 

Pleading and practice 

Action against directors and also against subsequent director, in damages, is a mis- 
joinder (N. Y.) 1063b. —for permitting loans on insufficient security, loss to plaintiff 
must be alleged (N. C.) 1121b. — o/ national bank cannot be removed from state to 
federal courts (Neb.) 802c. —for damages, demurrer for duplicity must show wherein 
duplicity exists (Vt.) 1353a. —for representing bank to be sound, defendant may 
show he didn't know it was unsound (Mass.) 574c. —for deceit, not necessary to 
prove false statements were made intentionally or knowingly (Neb.) 803a. —for 
deceit, demurrer for misjoinder of defendants will not lie (Neb.) 802c. — by holder of 
bank bills, complaint must allege that bills were received iDcfore time of wrongful acts 
(N. Y.) 968c. —by stranger, no defense that bank is also liable (N. C.) 1121c, 1122a. 
—for receiving deposits in insolvent bank, defendants are entitled to have jury pass 
on each cause of action against them (Mo.) 745d. 

Concurrence of board of directors must be pleaded, where acts complained of were neces- 
sarily those of board (N. Y.) 880c. 

Declaration that directors "caused dividend to be made" is demurrable (N. Y.) 880c. 

Decree enforcing directors' liability will not be delayed because distribution proceeding is 
pending (111.) 203b. 

Question of negligence of directors is one of fact (N. H.) 820a. 

Record showing all directors had resigned and vacancies filled cannot be annulled on 
certiorari (Cal.) 90a. 

Tort arising from neglect of duty properly joined with tort for fraud and deceit (N. C.) 
1121c, 1122a. 

Privity 

None between directors and stockholders (N. J.) 835b. 

Qualifications 

cannot be determined by commissioners to receive stock subscriptions (Ga.) 144b. 

Ratification 

of the conversion arises where payment as dividends in part to themselves of proceeds of 
conversion of special deposit, is ordered by directors (Ky.) 357d. 

of the contract arises where directors knowing work is being done under contract with 
cashier that bank shall pay, allow work to continue (Mo.) 764c. 

of any act which directors could have authorized, good (N. Y.) 888b. 

of their own purchase of property from bank, not good (Tex.) 1340d. 

of official acts by directors as a board, cannot be given by acting separately though a 
majority (Kan.) 318c. 

Presumption of directors' knowledge and ratification of officers' acts is for benefit of stock- 
holders and others dealing with bank, and cannot avail officer converting funds (Kan.) 
316a. 

Relations 

Bank may sell, as pledgee, pledge received from director for loan to him (Cal.) 90d. 
Director offering note for discount is neither officer nor agent of bank (La.) 384c. 
Director discounting note and having it rediscouuted by his bank, acts in individual 
capacity (Mass.) 541b. 

Release 

of directors is release of stockholder (Ga.) 148b. 

Directors can, by release under seal, relieve cashier from disqualification as witness (Me.) 

468d. 
Where powers of directors are defined by charter their release of insolvent maker of note 

is void, unless expressly authorized (La.) 413d. 

Remedy 

of bank against creditors for default is not precluded by directors' negligence (Mass.) 
530c. 

Resignation 

implied after abandonment of duties for sixteen years (Ohio) 1141b. 

Resolution 

unnecessary to enable bank to dispose of mortgage held as pledge (N. Y.) 957b. 



INDEX 



DIRECTORS— Continued 
Revocation 

of arbitrator's authority, by directors improperly elected, invalid (Mass.) 581b. 

Rights 

Right of inspection and director's hostility no excuse for denial of it (N. Y.) 865a. — to 
purchase with idle capital bank's stock for bank and sell same (Ga.) 137d. —to 
purchase bank's stock in their own right (id.). 

No right to be director and servant of directors at same time (Ala.) 15c. — to give 
bond to secure directors if forbidden by statute to be surety on cashier's bond (Me.) 
474d. — to recover reward offered by bank for information regarding theft (111.) 181b 
— to borrow from their bank (La.) 378c. —to purchase from their bank (Colo.) 107a. 

Sale 

of its stock to insolvent bank at par by director is void (Mo.) 716b. 

Statute of Limitations 

bars statutory liability of directors only after twenty years (Ga.) 144a. 
begins to run upon failure of bank to file its report, where directors are made personally 
liable by such failure (Colo.) 103c. 

Trustees 

Directors are trustees for depositors and stockholders (Cal.) 74c, and liable for loss due 
to bad faith, misconduct or want of care (N. C.) 1121a, (Va.) 1379b. —for bank's 
creditors (Ala.) 25c. — and bear no other relation to creditors than agents of an 
individual to his creditors (Wis.) 1427a. —for creditors, in liquidation, and man- 
datories of stockholders (La.) 392b. 

Unauthorized acts . 

can be ratified only by bona fide stockholders (111.) 233d. 

Unauthorized use of names 

is no ground for action against one allowing it (Tenn.) 1306b. 

Validity of acts 

Acts valid, though not put on record at the time (Miss.) 681c. 

Acts not voidable on ground of interest, as between bank and innocent third party (Pa.) 
1172c. 

Vote 

of directors authorizing petition for tax abatement on valuation on designated day, 
authorizes any abatement (Mass.) 594d; and bank is not estopped to show valuation 
smaller than on that day (id.). 

of director for himself as president is not valid (Va.) 1372c. 

Witness 

Transfer of stock though unrecorded renders director a competent witness (N. Y.) 854c. 

DISCOUNT 

(See Checks, Drafts, Promissory Notbs) 
Definitions 

Drawback upon a loan payable in future (Ky.) 368b. 

Every loan where compensation is deducted from principal and retained by lender (Ala. ) 

34a. 
Interest reserved from the amount loaned (Mo.) 708d, without regard to rules of rebate 

or discount (D. C.) 131a. 
Mode of loaning money, and does not include purchase (Ohio) 1150c. 
Purchase of commercial paper before its maturity for less than its face value (N. Y.) 

994e. 
Sometimes denotes loan (Pa.) 1189c. 
The term "discount" is applicable to loans and sales by way of discount (Dak.) 125c. 

DISHONOR 

(See Bank Bills, Checks, Drafts, Promissory Notes) 

Dissomxiox 

Abatement 

Dissolution forfeiture zhzXts action pending against bank (Ky.) 351c, (Me.) 463b, 470a; 
also a voluntary proceeding (N. Y.) 1069b, 1074b. — does not abate actions brought 
by bank (Ala.) 14c, (Ky.) 352c, (Miss.) 679d, 680a, (Tenn.) 1288b, (Tex.) 1337c. 

See also Action. 



78 BANKS AND BANKING 



DISSOLUTION-Continued 
Annulment of charter 

State cannot annul chatter without proof of public injury (La.) 391d. 

Assets 

Propel ty of corporation after dissolution is in stockholders as tenants in common (Me.) 
467a. 

Assignee 

has right to sell land of bank (111.) 182a. 

Causes 

Ca2«f(^ fry abuse or neglect of its franchises (111.) 231b. —by repeal ol otasxt^t (Mass.) 
529e. 

Not caused by fact that all stock is owned by one (Neb.) 795b, 796e. —by mere in- 
solvency (N. Y.) 964b, 972b, (Tenn.) 1309b, (Tex.) ISSOc. —by assignment of prop- 
erty and appointment of receiver (id.) . — by proclamation of governor (Miss.) 665e. — by 
inefficiency and ultra vires acts of directors, or insolvency of bank (Mo.) 713b. — by 
non-user of franchise (Minn.) 660c, (N. Y.) 933c. — by statutory meeting, with insuf- 
ficient notice (Md.) 495d. 

Misfeasance or non-feasance \s -not dhssaX-oAhavL (N. Y.) 973d, (Tenn.) \29,?)Q.; contra (Mich.) 
625d. 

Creditor 

cannot object to constitutionality of act of dissolution (Me.) 463b. Must collect his debt 
in accordance with act of liquidation to which he has assented (Wis.) 1397b. 

Debts 

The debts of a bank are extinguished by its dissolution (Ga.) 143c, 150e, (Miss.) 682c; 
contra (Ga.) 152a. 

Effect 

Corporate being completely lost (Ind.) 246a. Deprives of life and property (id.). Takes 
effect only after entry of judgment (id.) . Bank not discharged from taxes levied prior 
thereto (Wash.) 1386d. Partners of banking firm remain liable to unnotified depositor 
(N. Y.) 976d. Bank cannot constitute legal proceedings (La.) 428a. Bank exists 
de facto, after forfeiture of charter (S. C.) 1260b, and acts are valid (id.). Does not 
change status of bank to creditors (Cal.) 93c. Avoids contract for new stock (Mo.) 
734a. Destroys goodwill (111.) 212c. National bank stands as a domestic corpor- 
ation (Ga.) 161c, and may sue and be sued (Wis.) 1425a; contra (Kan.) 327e. Stock 
becomes non-transferable (Mass.) 581b. 

Expiration of Charter 

extinguishes judgments (Del.) 128a. Does not extinguish debts (Ga.) 152a. Prevents 
suits against bank (Ga.) 162a. Bank exists after expiration of charter until affairs 
settled (Ind.) 254d, (Mass.) 525a, (Minn.) 659b. Bank charter may be extended after 
expiration (Ark.) 52c, (Mass.) 520c. 

Forfeiture of Charter 

Cause must be total non-user (N. Y.) 855b. — not sufficient, where mere suspension of 
payment (La.) 424d, (Ohio) 1136b; where mere resolution to suspend (La.) 391d; 
where corporation fails to organize (N. C.) 1111c. — is sufficient where capital stock 
not paid as required by statute (Colo.) 101b. 

Grounds for forfeiture. Expansions of indebtedness over capital is not necessarily ground 
for forfeiture (Ohio) 1136b; or assignment by solvent bank (Miss.) 681b. Ignorance 
of unlawful loans by officers does not exempt from forfeiture (N. Y.) 867d. 

Claim on note payable to bank after assignment must be asserted in chancery (Miss.) 679e. 

Comtnissioner cannot sell corporate property until after decree of forfeiture (La.) 442a. 

Definition. Omission to exercise powers, not per se a forfeiture (N. Y.) 855c; nor fail- 
ure to elect directors (Miss.) 685b. Suspension of payment not equivalent to forfeiture 
(N. Y.) 855c. 

State alone can bring forfeiture proceedings (La.) 384b, 427d, 442b, 446b, 447a, (Mich.) 
604d, (Mo.) 702e, 703b, (Ohio) 1139b, (Tenn.) 1309b, (Vt.) 1359d; contra (Pa.) 
1191a. 

Trustee of bank after decree of forfeiture may sue (Miss.) 679c, 681a, 683b. -revive 
a suit (Miss.) 676a. — takes only property not already assigned (Miss.) 677e, 679c. 

Voluntaiy assignment does not work forfeiture (Mich.) 603b. 

Unlawful acts justify forfeiture of charter (La.) 428c, (N. Y.) 867d, (Pa.) 1189b. 

Waiver. Appointment of state director does not wai-v'e forfeiture (N. Y.) 872a. Assembly 
must concur in legislative waiver (N. Y.) 872a. 

Judgment 

against bank after dissolution is nugatory (Kan.) 327e, (Me.) 466b, 468b, 469a. 

Method 

Corporation can only be dissolved in statutory manner (N. Y.) 973d; or by consent 
(Mich.) 603b. Attorney-general, on notification of insolvency by superintendent o 
banking, must begin dissolution suit without relator (N. Y.) 1093a. 



INDEX 79 



DISSOLUTION-Continued 
Petition 

of directors, stating amounts and creditors as known, gives jurisdiction (N. Y.) 1064d. 
Facts showing dissolution of bank must be pleaded (Ind.) 247a. 

Powers after 

May collect and pay debts (La.) ilSe, (Mass.) 519c, (Me.) 461a, 474c, (Minn.) 641b, 
(Tenn.) 1287b. May sue (La.) 3S5c. Cannot enter on new acts (Ala.) 23b, (Miss.) 
671a, (Va.) 1377c. 

Receiver 

may be sued in equity for bank's debts (Me.) 463b. — collect assets (Me.) 477d. — (tem- 
porary) may be appointed in suit by attorney-general (N. Y.) 1093a. Appointment 
does not dissolve bank (Ark.) 4Sa, (111.) 227d, (S. C.) 1266b. 

Stockholder's Liability— see Stockholder's Liability 

Surplus 

of savings bank goes to depositors (N. J.) 840b. 

Trustees 

Appointment cannot be attacked collaterally (111.) 206b. 

Authority. May enforce rights of bank by suits in their own name (Ark.) 49a, (Ohio) 
1138c, 1139c. 

Powers end when all bank's debts are collected and paid (Miss.) 682c. Cannot bind 
bank by contract (la.) 283c. May transfer notes (Ala.) 26a; and purchase assets 
(Tex.) 1337c. Acts of survivors are valid (111.) 206b; and they may fill vacancies 
(id.). Bound to receive bank notes in payment of debts due bank (Md.) 495a. 

Election of trustees under an uncertain act regulating right of stockholders to vote is 
void (Pa.) 1180b. 

Voluntary Liquidation 

effected by directors (N. Y.) 938c. —by stockholders (Kan.) 322e. 

DIVIDEND 

(See Insolvency, Stock) 

DOmESTIC REL,\TI01VS 

Husband and Wife 

Money in possession of wife is not presumed to belong to husband (Ark.) 54b. 

Notary must acquaint the wife with the rights she renounces in executing a mortgage 

(La.) 408a. 
An indorsement charging wife's separate estate is not a mortgage but personal security 

(N. Y.) 981b. 
Statute giving husband the sole management of his wife's separate estate, does not enable 
him to convey title thereto (Tex.) 1336b. 

Married "Woman 

may become stockholder (La.) 440a. 

may assume the liability of a stockholder of a bank by statute (Mo.) 727b. 

owning stock in her own right is personally Uable as stockholder under statute (N. Y.) 

916a, 923a. 
mingling money with that of her husband loses title thereto (Mass.) 551d. 
Statute giving wife property acquired by her own eflfbrt modifies the common law 

(Mass.) 551d. 
Statute of 1865 does not make bank Uable for wife's money drawn out by her husband 

(Mo.) 708b. 

DRAFTS AWD BIEES OF EXCHAIVOE 

Acceptance 

cannot be varied by oral agreement (Mass.) 556b. 

does not admit genuineness of indorsement (111.) 226c. 

draft on an in(Rvidual must not be accepted in official capacity (N. Y.) 900b. 

of draft for goods shipped, raises no presumption of shipment (Neb.) 790c. 

sufficient by letter of credit (Cal.) 63b, if acted upon within reasonable time (La.) 386b. 
—by payment (R. I.) 1250b. ' 

insufficient by oral agreement (Mich.) 617c. —by telegram "you may draw on us for 
$700" (Md.) 509b, and telegram announcing payment of conditional acceptance must 
be shown to be genuine (W. Va.) 1391c. 

unconditional by letter authorizing limited sight draft (N. Y.) 956a. 

Agreem,ent of bank to cash draft creates no liability on non-acceptance of draft with ex- 
change (la.) 293d. 

Bill of lading may be delivered on acceptance of time draft (Tenn.) 1311b. 

Conditional agreement must be acted on, to create liability (La.) 386c. 



80 BANKS AND BANKING 



DRAFTS AND BILLS .OF EXCHANGE— Continued 
Acceptor 

is competent to testify as to usury reserved (Mich.) 602c. 

discharged by holder's failure to apply deposit of drawee in payment (Tex.) 1335b. — by 
dismissing appeal and paying cost raises sufficient consideration (Miss.) 686d. 

is not discharged by judgment obtained against drawer (La.) 386c, nor on note given 
by drawer, unless accepted in payment (Mo.) 701d. 

is not estopped by admission of validity from showing fraudulent alteration (N. Y.) 
1003d. 

is trustee of funds on accepting draft as cash under agreement to pay third party and 
liable to beneficial owner, though draft never collected (Pa.) 1181b. 

under agreement, is estopped to deny that drafts were drawn in accordance therewith 
(Neb.) 790c. 

cannot defend against innocent holder, on ground that bill was usurious between orig- 
inal parties (N. Y.) 944b. 

Acconiiuodation 

draft of partners is binding in hands of bona fide holder (N. Y.) 953a, but partner 
has no implied authority to indorse firm name (Pa.) 1170d. 

Acceptor is liable to holder (Mass.) 556b. 

Burden of proof 'vs. on accommodation indorser, as against payee (La.) 393a. 

Cashier, accepting without authority, does not bind bank (Mich.) 601b; contra, as to 
bona fide holder (Ind.) 257a. 

Discount before acceptance for drawer cannot be recovered by bank surrendering no 
funds of drawer (Mich.) 624a. —forvaake.r with notice does not render acceptor liable 
(Pa.) 1248c. 

Drawer discharged on release of judgment against acceptor (Miss.) 68 6d. 

Indorsement to identify the payee warrants title (Mo.) 752e. 

Indorser liable, though bank discount bill at usurious rate (Tenn.) 1298b. 

Payment by acceptance of worthless check, mortgage given therefor, is not void for want 
of consideration (Me.) 488b. 

Presentment for acceptance one month before due binds indorsers (Mass.) 537d. 

Prior indorsers on bill indorsed by drawer as third indorser, presumed to be accommo- 
dation indorsers (Pa.) 1170d. 

Statetnents of holder's agent cannot be set up by accommodation acceptors, after suit 
brought (Mich.) 611a. 

Certification 

Effect. Warrants drawer's signature, sufficiency of deposits and payment to bona fide 
holder (N. Y.) 1003d, 1097c, who must have received in good faith (N. Y.) 1024a; im- 
ports the same obligation as the certification of a check (N. Y.) lOlSa, and operates 
as an assignment of the funds to payee (111.) 233a. Makes draft negotiable (N. Y.) 
1013a. Renders bank liable if made before notice of drawer's insolvency (111.) 233a. 

Evidence. Testimony as to witness's understanding of contract of certification inadmissible 
(N. Y.) 1029b. Understanding of parties as to validity is for jury (N. Y.) 1023d. 

Forged draft, if certified, may be recovered on by bona fide holder (111.) 242a, but certi- 
fication, after draft raised, not conclusive on bank (111.) 242a; with notice of fraud can- 
not protect drawee against negligence in circulating (N. Y.) 1097c. 

Collection— see Collections 

Consideration 

presumed to be money (N. Y.) 922a. 

Constituted by forbearance to attach (Cal.) 63b. — anticipated payment of proceeds 

(Cal.) 92b. 
Holder charged with notice of failure (Tex.) 1335b. 

Credit ^ "■ 

given where part of the consideration for bill of exchange was U. S. note with forged 
indorsement (Md.) 497b. 
not presumed from delivery of draft with bill of lading (Mich.) 631a. 

Definition 

Bill of exchange drawn by one government officer on another to pay out of a specified 

fund is directory merely (Ky.) 342d. 
Check payable in "current funds" is a bill of exchange (Wis.) 1407c, but banker's checks 

not drawn on any particular fund are not (Ind.) 268a. 
'■^ Draft" used in statute includes check (Kan.) 335c. 
Drafts "are not bills, obligations or notes within meaning of Banking Law (Pa.) 1207c. 

— on distant bank are for circulation and not for immediate payment (Mo.) 731b. 
Inland bill of exchange, discounted, is in effect a foreign bill (Ky.) 343c. 
] Instrument drawn on "A, payable to order of B, at 60 days," is i)ill of exchange (N. Y.) 

872d. 
Note payable at bank not bill of exchange until discounted (Ky.) 342c. 
Written direction to pay to order of X after date is draft or check (R. I.) 1250b. 



INDEX 81 



DRAFTS AND BILLS OF EXCHANGE— Continued 
Delivery 

discharges bank, if sent by mail properly addressed by request of depositor (Wis.) 1409c> 
to proper person essential, when ordered sent by mail (id.). 
Examination of draft and package attached, is not delivery (Mass.) 590d. 

Demand 

essential before suit brought '(N. Y.) 1049c. 

presumed properly made, from protest of foreign bill of exchange (Va.) 1372b. 

Discount 

cannot be charged at higher than authorized rate on domiciliary bill (Pa.) 1189c. 

of draft on bills of lading, not paid, passes title to goods to bank (N. Y.) 1079c. — on 

consignee of cotton for consignor puts bank in position of mortgagee in possession 

(N. Y.) 966a. 
for larger aviount, with notice of contingent agreement to accept one of two amounts, is 

at bank's risk (Mass.) 575c. 
may be charged in addition to collection charges (Pa.) 1189c. 

Discounting and placing proceeds to drawer's account is cash deposit (Ky.) 374a. 
Drawer cannot complain of rate (N. Y.) 922a. 

Dishonor — see Notice of Dishonor. 

Drawee 

Liability. Bound to know drawer's signature but not contents of bill (N. Y.) 890d, 1080b, 
and is presumed to have better knowledge than holder (La.) 437b. Becomes in effect 
an acceptor by promise to holder of bill (Tenn.) 1310b. Liable for payment of accept- 
ed forged draft (La.) 437b, (Tenn.) 1315b, or on promise to pay draft lost before 
maturity (La.) 399b. 

Not liable to collecting bank after notice of refusal to pay draft (S. D.) 1277e. 

Rights. Entitled to inquire into consideration between drawer and payee (Mo.) 715b. 
Not affected by collection bank's knowledge of partnership dissolution and acceptance 
of one drawee (Colo.) 104a. Payee cannot show that collection was not for drawee's 
use (Ala.) 40a. 

Drawer 

Discharged by holder's failure to present within proper time (N. D.) 1128c. —failure to 
present check, taken in payment, on day of its receipt (N. Y.) 950a. — extension of time 
without consent (Wis.) 1399a. — bank^s interference with regular discharge of draft 
(id.). — striking out restrictive indorsement without consent (Mo.) 713c, 719a. 

Not discharged as to unpaid draft, by fact that he furnished funds to drawee to pay 
draft (N. Y.) 943b. 

Liable on failure of drawee to pay at maturity (Ind.) 273b. — issuing draft with dif- 
ferent amount written in body by mistake (Neb.) 779c. — draft signed in blank, held 
by agent (N. Y.) 953a. Is surety for acceptor (Ga.) 166a. Not entitled to notice of 
non-payment (Ga.) 151c. Cannot set up bank's failure to comply with laws as to 
location (Ind.) 255c, or that bill belonged to branch bank (Mo.) 702e. 

Not liable unconditionally by operation of subsequent statute (Mass.) 519e. 

Rights. Not estopped to set up lack of authority of indorser to discount (Ala.) 29b. 
Not required to account for proceeds received in good faith (N. Y.) 1043b. May agree 
with bank that drafts not accepted be charged back (Mich.) 319b. Does not warrant 
indorser's signature (Pa.) 1204c. May set up misrepresentations as to bank's sol- 
vency (N. Y.) 1022b. 

Duplicate 

does not constitute waiver, after drawer discharged, or create additional liability of par- 
ties (N. D.) 1128c. 

Effect 

Draft signed without fraud and with opdortuuity to know facts binds parties (Cal.) 92b. 
— is not, ipso facto, an assignment of fund (Colo.) 104d, (N. Y.) 958c, (Ohio) 1160a. 
—on consignee, without bill of lading, is not assignment of proceeds of goods (Mass.) 
572c. — on another bank is not a bank bill (Mass.) 519e. 

Evidence 

admissible to show protest, including indorsers for collection, whose names have been can- 
celed (Ky.) 353a, but not to aid in interpretation of indorsement having definite legal 
import (Ga.) 167c. 

of blank indorsement followed by special one, excludes presumption as to prior acqui- 
sition (Ind.) 255c. 

of cashier that transaction was not on bank's book does not rebut presumption that it 
was for its benefit (Ind.) 255c. 

of indorsement by agent of bank and production by plaintiff shows title (Mich.) 630c. 

Draft presumed absolute unless proceedings disclose contingency (Ala.) 6c. -reassigned 
to bank to apply on assignor's account and note given for one day, amounts to ex- 
tension (Wis.) 1399a. 

Drawer not made competent witness by offer to deposit costs (Ala.) 18a. 



82 BANKS AND BANKING 



DRAFTS AND BILLS OF EXCHANGE— Continued 
Evidence (continued) 

In action on overdraft upon entire amount all drafts are competent (Pa.) 1243c. 
Indorser is competent witness to show forged indorsement (N. Y.) 873d. — acting metAj 
as agent, may state no consideration or notice of dishonor was received (Pa.) 1181b. 

Forgery— see Forged Instruments 

Grace 

allowed on bill of exchange (Minn.) 641a. 

Holder 

bona fide, prima facie, if indorsee (Colo.) lOOd. —if taking for valid debt (Ind.) 277d, 
(N. Y.) 916d. — irr^cfiVjVzg-correspondent with amount of draft (Mass.) 533c. — ^/'hold- 
ing draft for value before maturity without notice of irregularity (Tex.) 1332b. — if 
discounting, as against subsequent acceptors (Mich.) 630b. — j/" giving credit for ante- 
cedent debt (Mo.) 751a. — if purchasing in good faith, on certification, without notice 
of equities (N. Y.) 1024a. — ^ check tendered in payment is accepted and bill of ex- 
change delivered (N. Y.) 1036b. — if State, taking in satisfaction of taxes (N. Y.) 
1055b. — may recover, though draft drawn for fraudulent purpose (Mass.) 545a, 
or on bill of exchange taken for bill tainted with usury (Ohio) 1145c, when not made 
void by statute (Ohio) 1149b. — may charge maker or indorser (N. Y.) 916d. 
—protected against prior equities (N. Y.) 1036b, even if taking from one who can 
transfer title (Colo.) lOOd. —not affected by fraud (Pa.) 1173a. 

not bona fide if taking as security for antecedent debt (N. Y.) 924c, 1022b, or taking 
draft as a credit without proof it was taken in payment (N. Y.) 1083b, or if further 
advances were made to remitting bank after receipt of paper for collection (N. Y.) 
947b, or if it is receiving bank refraining from drawing balance due it from remitting 
bank (N. Y.) 947b, or if with notice that acceptor denies liability (Pa.) 1182a. 

liable to drawee who has paid forged draft (Pa.) 1200d. — to all defenses against prior 
holder, if taking without consideration (Me.) 472d. —for damages when holding for 
collection and failing to give notice of non-acceptance (La.) 376f. — on check given 
in payment by party hable on draft (Mo.) 761d. 

held to knowledge of his own title, genuineness of indorsements and balance of instru- 
ment except drawer's signature (N. Y.) 974a. 

acquires no new rights to funds paid over to assignee (111.) 230c, or prior lien on funds 
in drawee's hands (Ohio) 1160a; contra (la.) 285b, nor greater rights than insolvent 
debtors (la.) 301a. Has right to presume that funds will be provided for payment 
(la.) 277c. 

inay collect exchange from all parties to unpaid bill (Ky.) 352a. 

■may make himself im.niediate indorsee of any indorser where all indorsements are left 
in blank (Ark.) 47a. 

may recover from drawer where agent of collecting bank is negligent (Tex.) 1331b. 
—from collecting bank negligently discharging indorser, if drawer is insolvent (Ga.) 
155a. —from acceptor on duplicate bill, although original paid on forged indorse- 
ment (La.) 391a, but against drawer only, when paid by drawee, if bill is not ac- 
cepted (La.) 399a. —from, drawer or acceptor or both (Pa.) 1182a. — though 
knowing maker intended to use proceeds for illegal purpose (Tenn.) 1297a. — on unre- 
stricted indorsement by cashier (N. Y.) 934c. 

cannot recover from bank purchasing in good faith, if holder sends to one personating 
another (Kan.) 312b. — against indorser, for negligence, where purchasing from one 
fraudulently impersonating indorsee (Mo.) 733a. 

cannot predicate claim on book account due to bank (Miss. ) 690c. 

Title. Production of draft in blank is prima facie proof of title (S.C.) 1266b. Branch bank 
is owner and holder of bill discounted by it (Tenn.) 1286d. Bank becomes holder 
of draft payable to it, on discount under agreement to apply to dishonored note 
(Mass.) 569d. Possession of draft and bill of lading attached is prima facie evidence 
of indorsee's title to both (N. C.) 1118c. Holder is held to knowledge of his own 
title, the genuineness of the indorsement and the rest of draft save drawer's signature 
(N. Y.) 974a. 

lUegal intention of maker 

to use proceeds in aid of rebellion on biU discounted by bank with notice, creates liability 
(Tenn.) 1297a. 

Indorsee — see Holder 

Indorser 

discharged by delay in forwarding notice of dishonor (Me.) 461c. —paytnent, by drawee 
(R. I.) 1250b. —failure to give notice of protest, unless waived (111.) 190a, (Me.) 
488b. — erasure of indorsement (Mass.) 531b. 

not discharged by bank's acceptance from drawer of transfer of goods to be credited pro 
rata (Ala.) 14b. — although bank makes usurious contract with acceptor, on forbear- 
ance to sue (Mo.) 696d. — by mere lapse of time (Ga.) 145e. —fiy failure to notiiy, 
on forged draft, where no default in payment or acceptance (Mo.) 752e. 

Defenses. Cannot set up alteration of marginal figures, if indorsing blank bill (Ky.) 360b. 



INDEX 83 



DRAFTS AND BILLS OF EXCHANGE— Continued 
Indorser (continued) 

— charter's provision requiring action by quorum of directors in discounting (Ind.) 

256b. — condition that there should be co-indorser as against indorsee (Mo.) 702e. 

— that indorsement was for identification only (Ala.) 38d. 
Is not competent witness to show note, which he indorsed to give it currency, was void 

at inception (Me.) 472d. 
May set up usury in inception, as against holder (Ala.) 23b. — lack of consideration 

or notice of dishonor, where indorser merely agent (Pa.) 1181b. 
Rights. May testify, as between holder and his own indorsee, when released by latter 

(N. Y.) 868a, or where entitled to credit of exchange (Ala.) 18a. 

Indorsement 

requires consideration (N. Y.) 1005b. 

in name of payee essential, but not necessarily in name by which he is commonly known 
(N. Y.) 104.5b. 

by payee transfers title (Colo.) lOOd, (N. Y.) 922a. 

of payee forged, estops one negotiating bill to deny genuineness of indorsement (Ky.) 

356a. 
for account of payee shows trust on face of bill (Mo.) 713c. 

'for collection" does not pass title (Ga.) 167c, (Md.) 512c, (N. Y.) 927a, (Pa.) 1238c. 
— is notice of real ownership (Md.) 503a, (N. C.) 1122c. — does not discharge war- 
ranty of prior indorsements (Mo.) 752c. — gives hsink collecting such bill no right to 
keep proceeds for balance due them from sender who was not indorser (Md.) 503a. 
— may be stricken out (Ky.) 353a, (N. Y.) 887a. —need not be indorsed by payee 
(Conn.) 112c. 

in blank for collection implies authority to fill in blanks (Ky.) 366c, (Tex.) 1332b. 
—may be filled in at trial (N. C.) 1113a. 

"for account of indorser" is restrictive (Mass.) 583c. 

restrictive does not pass ownership (id.). — must be followed at bank's peril in paying 
draft (Pa.) 1238c. — erased without authority destroys validity of draft as to drawer 
(Mo.) 719a, and bank is bound to know that such is effect (id.), and parol evidence 
is inadmissible to show contract between one erasing and the drawer (id.). — erased 
operates as mere authority to receive proceeds for use of one who erased (id.). — by 
drawee implies that bank is to look only to him (Mo.) 713c. 

by cashier presumed to be authorized and binds bank (Ind.) 257a, (N. Y.) 932d. — with- 
out delivery, does not divest legal right (Ark.) 47a. 

by president alone, binds him (Ga.) 140b. 

uncanceled indorsement negatives indorser's title (Ga.) 151a. 

of partnership natne, by one partner, if unauthorized, will not affect rights of innocent 
holder (Ky.) 344a. 

Expert testimony not admissible in interpretation of indorsement having a definite legal 
import (Ga.) 167c. 

Indorser is guarantor of immediate indorser's signature (Pa.) 1204c. 

Interest 

not allowable until demand made (La.) 399b. 

reserved after maturity does not show draft is not payable on demand (la.) 289a. . 

Legality 

Presumption that draft is issued within statutory restrictions (N. Y.) 877a. 

Lex loci 

governs payment (111.) 230c; contra, as to draft collectible in one state and sent to 
another (N. Y.) 1040c. 

Lien 

on deposit does not extend to bill for collection (Pa.) 1177c. 

Maturity 

Draft not stating time of payment is on demand (la.) 289a. 

Notice of dishonor 

may be given by agent (Tenn.) 1286d, and only to principal of agent for collection 
(N. Y.) 875c. — by collecting bank or transmitted to principal to give (Ky.) 343c. 
— by notary, though interested in bank (Ky.) 369c. —by cashier after business hours 
(N. Y.) 856a. —by swiftest conveyance (Va.) 1372b. 

inust be given within a reasonable time (Md.) 500a, (N. Y.) 856a. ' —fo prior indorsers 
on day after receipt (Me.) 461c, (Tenn.) 1286d. — on same day if received in time 
(Me.) 459d. 

Collecting bank has same time to notify customer as if it were beneficial holder 
(Tenn.) 1286d. — is bound to use same diligence as holder for value (La.) 376f. 
— is liable for omission to notify drawer and indorser of dishonor of drawee's draft 
in payment (N. Y.) 1094a. — not liable for notary's failure to give valid notice 
on inland draft (la.) 307d, or for delay unless damage is shown (la.) 293b. 

Protest contains ample notice of dishonor (Me.) 461c. 



84 BANKS AND BANKING 



DRAFTS AND BILI^ OF EXCHANGE— Continued 

Notice of dishonor (continued) 

Unnecessaty to payee who has indorsed (Conn.) 112c. 

CeHificate of notary is evidence of demand (N. Y.) 875c, (Va.) 1372b. —may be exe- 
cuted at any time (N. Y.) 875d. —is sufficient, though hour of demand and authority 
do not appear (N. Y.) 896d. 

Effect. Charges indorsers (Me.) 488b. Binds parties according to bank rules (Ala.) 17a. 

Evidence. Cashier is competent to prove that party received notice (Ala.) 18a. Genuine- 
ness of postmark and correct address must be proved (Ala.) 16b. Knowledge of non- 
acceptance or neglect to give notice not implied from promise to pay after dishonor 
(Ky.) 353a. Proof of notice unnecessary to indorser knowing bank's charter relieved 
it from duty of notification (Ga.) 139a. Want of notice to indorser presumed to be 
iniury to drawer (N. Y.) 868a. 

Suffident, if duly mailed by notary (Me.) 459a, (Md.) 500a. — if actually received by- 
maker (Ky.) 369c. — if given verbally to indorser, if clear and certain (Ky.) 344a. 
— j/" delivered at residence to member of family with instructions to deliver (Ky.) 355d.. 
— if notary's name is printed and debt identified with common certainty (Ala.) 16b. 
—i/" given to drawer by any party to bill (N. Y.) 856a. — although not stating that 
holder looks to person notified for payment (Me.) 459a. — in state where bill pre 
sented, though draft is of foreign bank (N. Y.) 990b. 

Payee 

acquires perfect title to draft converted into money and paid out by bank in due course- 

of business (N. Y.) lOlOd. 
discharged from liability by laches of collecting bank (Ky.) 350d. 
of draft issued to represent uncollected checks has no priority over general creditors. 

(Mich.) 627b. 
by assigning draft waives objection to it as paymeiit of debt due to non-compliance with. 

payee's instruction (N. Y.) 913d. 

Presentation 

Diligence. Agent for collection must use diligence (N. Y.) 900b. Holder may use judg- 
ment in presenting ambiguous draft (Wash.) 1387a. Same presentation required of 
draft on distant bank as of demand bill (Mo.) 731d. Presentation properly made at 
surviving partner's business office (N. Y.) 875d. 

Z?^/a)' for reasonable time does not discharge (Mich.) 611b, (Miss.) 689a, and reasonable 
time is question of law (Miss.) 689a. —for one day (N. Y.) 949d, or 4 days (Miss.) 
690c, or 7 days (Mich.) 611b, reasonable. — unreasonable, if 25 days (111.) 192e, or 
30 days (Miss.) 689a. 

Effect. Presentation is essential to assignment of fund (Colo.) lOld. —and dishonor 
must be shown to recover on lost draft (Kan.) 327b. Drawer discharged, if drawee 
fails before presentation (Neb.) 774c. 

Payment (see Pa-OiIENt) 

by check valid if check actually paid (N. Y.) 950a, or used by payee (111.) 190a, or re- 
ceived, if acceptor fail before presentment (Me.) 488b; contra, if check dishonored 
(N. Y.) 942c, 943b, 949d, or on mere check of drawer (111.) 190a. 

by drawer "to protect credit" gives him no cause of action (Pa.) 1222a. 

to drawer without production of draft is at acceptor's risk (Mich.) 630b. 

to holder discharges draft (R. I.) 1250b, unless under mistake of fact (Md.) 503c,. 
(N. Y.) 913d, not induced by payee (Kan.) 318b. 

of raised draft is recoverable (N. Y.) 1057c. 

of overdraft is fraud in law on part of officer paying or authorizing payment (Cal.) 68c. 

not made by deposit of public funds to personal account (la.) 295a. — mere passing of 
money to principal's account (111.) 242a. —presence of acceptor's funds and agree- 
ment by bank to pay (Mich.) 618d. 

per se is not shown by acceptance of draft for a debt (N. Y.) 945b. 

Assignee may stop payment on insolvency of drawer (Mich.) 613c. 

Bank assumes liability for receiving check in payment of draft (Mo.) 761d. — where draft 
is payable cannot apply deposit without order (111.) 208c. 

Collecting bank crediting correspondent with amount of draft does not pay it (Mass.). 
533c. 

Recovery 

m,ay be had in joint action against drawer and indorser (Ky.) 343c. 
may be had in state where draft is dishonored upon refusal of payment (N. Y.) 998c. 
Bank cannot recover on bill not treated as discounted bill (Mo.) 707a. 
Holder of draft surrendered by collection agent, may recover (Tex.) 1331b. 
One holding out another as owner is estopped to prove ownership (Ohio) 1140a. 
Purchaser of draft from bank on payment being refused may recover, though indebted' 
to bank (S. C.) 1262b. 

Revocation 

Order on county given as security for advances, is irrevocable, after notice and acts, 
thereon (la.) 290c. 



INDEX 85 



DRAFTS AND BILLS OF EXCHANGE— Continued 

1 Signature (see Forged Instruments) 

of every drawer, acceptor and indorser is presumed to have been made for value, before 

maturity in ordinary course of business (Okla.) 1166c. 
Party presenting draft to bank for payment, is responsible for authenticity of signature 
(N. Y.) 888a. 

;Sight Draft 

on bank having funds of drawer is not check (Mich.) 613c. 

.must be presented not later than next business day (111.) 190a. 

to release drawee from liability, funds of drawer in his possession must be paid (Mich.) 

613c. 
deposited for collection does not vest title in bank (S. D.) 1277e. 

'Surety 

discharged by bank's failure to apply deposit to payment of draft within reasonable 
time (N. Y.) 869b. 

Tender 

not essential after demand and refusal (111.) 242a. 

Usury— see Usury 

DUTY OF BANK 

-Application (see Deposit) 

Maker depositing money to pay note, bank need not apply as against surety (Ind.) 265b. 

Bank bills (see Bank Bills) 

Bank must accept its own bills in payment (N. Y.) 857d. 

Owner of bank bill of which one-half has been lost, may sue bank in debt (Tenn.) 1289b. 

banker 

must take out a license (111.) 192c. 
bound to know his solvency (111.) 231a. 

-Bills of Lading (see Bills of Lading) 

indorsed to bank should not be delivered until sight draft is paid (Tenn.) 1311b. 

!By-laws 

cannot relieve bank from using due care in payment (N. Y.) 1040b, or discharge it from 

ascertaining the identity of persons presenting passbooks (N. Y.) 1027d.) 
Bank cannot violate its own rules (N. Y.) 1037e. 

-Depositor (see Deposit) 

making deposit is entitled to information as to financial condition of bank (N. Y.) 948a. 

must be protected hy bank against unauthorized checks on the deposit (N. Y.) 1003b. 
— against attachments (Ky.) 374a. 

Age or ignorance^ does not require bank to ascertain sanity (N. Y.) 1014b. 

Bank contracts to pay depositor's check only upon genuine indorsement (Pa.) 1242d. 

Bank is liable for payments on indorsement forged by a depositor's clerk (N. Y.) 982a. 
— responsible for safe-keeping of funds, and cannot set up in defense fraud of its own 
officers (Pa.) 1212b. — bound to know condition of accounts and must abide by any 
mistake of its own (Md.) 511c. 

Bank must retain deposit until direction as to payment thereof (N. Y.) 1021c. — ob- 
serve restrictions to specific appropriation on face of check (Pa.) 1211c. 

Bank not trustee., in the sense that it must see to application of partnership funds (Miss.) 
689e. 

Bank camtot question title (Dak.) 126c, (Pa.) 1214a, 1224b. —set up defense, depositor 
not owner, without showing true owner claims title (N. Y.) 1039a. 

Diligence (see Deposit, Payment and Special) 

is required to a high degree of bank in payment of checks (Minn.) 658b. 

of prudent person must be shown (N. H.) 818d. 

Banker, though not compensated, held to diligence promised (N. Y.) 1055a. 

Bank must examine its correspondent's monthly statement within a reasonable time and 

object to any unauthorized charge (Tex.) 1338c. 
Banker must use same caution in cashing check drawn to fictitious person, as in case of 

ordinary checks (Ohio) 1159b. 
Burden of proof \s on banker to show diligence, when he lends customers money on forged 

securities (N. Y.) 1055a. 

Financial condition 

Bank not required to disclose financial condition of itself, its officers or customers (Pa.) 
1228e. 



Poreign corporation 

doing banking business must comply with state laws (Cal.) 76a. 



86 BANKS AND BANKING 



DUTY OF BANK— Continued 

Negligence (see Deposit, Collections) 

in payment on signature in passbook is measured by standard of skilled person (N. Y.)' 
1022c. 

in paying money to wrong person renders bank liable (Wis.) 1413b. 

in mistaking date of note and protesting before maturity renders bank liable (Pa.) 1192a. 

in failure to keep stock list (Md.) 499a, and to exercise due care when bank can produce 
no account for deposit, renders it liable (N. C.) 1105b. —to comply with orders ren- 
ders bank liable (Mass.) 552a. 

shown by failing to list customers' bonds (N. Y.) 947c. 

not presufned in absence of evidence of apparent forgery (Pa.) 1246a. 

does not arise from failure to give notice of forgery received after payment unless party- 
is prejudiced (N. Y.) 1050a. 

Bank pays alleged agent at its peril (N. Y.) 1039a. 

Note deposited for collection or as collateral security, bank is bound to do necessary 
acts to bind indorser (Pa.) 1182d. 

If by-law recognizes paytnent on passbook, bank owes duty as to identification of pre- 
senter (N. Y.) 1027b. 

Monev sent by mail under instructions, must be registered to protect sending bank (Ky.) 
373c. 

Bank promptly transinitting bill received for collection, payable at a distant place, dis- 
charges liability (Tenn.) 1299d. 

Usual methods used by bank to detect fraud sufficient to relieve it from negligence- 
(N. Y.) 850c. 

Age or ignorance of depositor does not require bank to ascertain sanity (N. Y.) ipi4b. 

Bank not required to see to application of proceeds of mortgage made to it (La.) 408a. 

Payment (see Deposit, Payment) 

of mxmey received on certificate cannot be refused by bank (111.) 225e. 

m.ust be made in specie when currency stipulated for has ceased to be current (N. C.) 
1107c. — when check is presented (N. Y.) 974c. 

Bank having funds is bound to pay check (N. Y.) 1050c. —is bound to know whether- 
it has funds to meet checks (N. Y.) 928c, 930a. —owes no duty to holder of check until/ 
presented (Tenn.) 1307c. — must pay payee named, upon his indorsement or remain 
liable (Tenn.) 1312d. —must force full payment on certificate of deposit or restore- 
it to former owner unimpaired (Mo.) 765c. —cannot escape obligation to pay de- 
posits without some act or negligence of its customer (Ind.) 274b. 

Debtor authorized to remit in any safe way is justified in purchasing and mailing draft. 
(N. Y.) 913d. 

Note payable at bank with funds should be paid at maturity (Pa.) 1217a. 

Ordinary demand should be paid same day during banking hours (N. Y.) 857c. 

Pledge (see Deposit, Specific) 

Bank is responsible for value of collateral at the time it should have been used (Tex.). 
1324a. 

Promissory Note 

Neither bank nor notary bound to know any one but last indorser (Pa.) 1178b. 
Bank having funds should pay note (N. Y.) 1050c. 

Partnership 

Bank not bound to inquire as to relative rights of members depositing with it (N. C.)i 
1126b. 

Signature 

Bank bound to know depositor's signature (Ala.) 34d, (Ga.) 167a, (111.) 199b, (La.) 
432e, (Md.) 504c, 508c, (N. Y.) 998b, (Ohio) 1162d, (Pa.) 1170a, but not that, 
the drawer wrote the body (Ind.)275d. 

Bank is presumed to know depositor's signature (Ky.) 366a, and must bear the loss- 
when it pays a forged draft (Tex.) 1337d, but the general rule is decisive only when 
the party receiving the money has not contributed to the fraud (Tex.) 1335d; nor 
does the negligence of the depositor reUeve it, unless directly connected with the forgery 
(Ya.) 1380b. 

Bank discounting check must know genuineness of indorsement (la.) 301c. 

Bank accepting forged check drawn upon it, and giving credit therefor, is bound to de- 
positor by its acceptance (Pa.) 1170a. 

Savings bank is negligent in paying money on book without examining signature tO' 
withdrawal slip (N. Y.) 1047d, or paying deposit to stranger who stole book, signa- 
ture being doubtful (N. Y.) 1054c. 

Strangers 

Bank need not select an attorney for outside parties or engage in compromising claims 
for them (N. Y.) 991c. 



INDEX 87 



ELECTIONS 

(See Corporations, Officers and Agents) 

ESTOI^PEL, 

Admission 

that act was done under color of charter authority estops bank to deny such authority 

in quo warranto proceedings (Miss.) 685b. 
that one acted under assignment estops him to deny, even in another suit, his acceptanc! 
of appointment as assignee (Ga.) 152b. 

Dealing 

with bank as corporation estops one to deny its legal existence (Ind.) 250b, (La.) 445b, 

(Neb.) 770c, 776a. 
with national bank, by giving it real estate as security, estops one to deny bank's right 

to enforce loan (Neb.) 806b. 
with president, as officer of bank, and accepting loan from bank through him, estops 

one to deny his authority (Mo.) 767a. 
Drawer of check, to be held in escrow until payee conveys property to drawer, is estopped 

after the conveyance to deny that payee was real party in interest (Ind.) 273a. 

Offer in evidence 

of bank books by president estops him to deny their genuineness (Ga.) 141c. 

Omission 

to file statutory certificate cannot be set up by banking firm as a defense (Mich.) 616a. 

Participation 

in organi-alion of bank estops one to set up firaud in organization as against creditors, 
in suit by receiver (Conn.) 117a. — if the organization be illegal, prevents recovery 
on bills of the bank (Ga.) 147a. 

in illegal transaction prevents claim for relief for violation of law by another party to the 
transaction (la.) 295a. 

in illegal agreement, whereby one holds bank stock, prevents him firom setting up, as de- 
fense to note given therefor, that bank was in pari delicto (Me.) 465a. 

Ratification 

of terms upon which judgment was taken prevents subsequent objection (Pa.) 1229b. 
by knowledge and acquiescence prevents subsequent objection to application of funds on 
bank books (la.) 298b. 

Receiving benefit 

of checks estops one to deny the authority to issue them (111.) 215c. 

Recovery of judgment 

against bank as corporation estops one to sue members as partners (Neb.) [791b. 

Representations 

by agents of bank that bank stock was free firom incumbrances estops bank to forfeit 
it for debts as against one loaning thereon in reliance on representations (Mo.)709d. 

by bank as to debtor's solvency does not estop it to accept payment of its debt as 
against persons to whom the representations were made (la.) 298c. 

Submission to jurisdiction 

if voluntary prevents subsequent objection thereto (Neb.) 796e. 

by appUcation for order for investment does npt prevent savings bank president from 
subsequently questioning authority of court to make the order (N. J.) 838b. 

EVIDENCE 

Admission 

that action is brought under charter is effected by affidavit of defense required by char- 
ter (Ga.) 151a. 

of correctness of entry in passbook is effected by silence concerning it (111.) 232c. — in 
bank's book may be proved by parol, though record be not accounted for (Ark.) 50d. 

Best evidence 

of discount customs is books (N. Y.) 854d. 

of bank balance is passbook (S. C.) 1266d. — is not always passbook (S. C.) 1269d. 
of depositors^ receipts and disbursements is books of bank (Mo.) 708a. — is not synopsis 
made up from bank's books (id.). 

Books of bank (see Books) 

are evidence (Cal.) 81b, 100a. Contra as to those of private banker (La.) 445d. —for 
the bank (Ga.) 149b. — against 'the. bank (Mass.) 558a, (N.Y.) 894b. — against -presi- 
dent of bank, (R.I.) 1252a, in proceeding for fraudulently receiving deposits (la.) 311a. 
— o^ajwj^ bank officers in criminal proceedings (Cal.) 80c, (Mass.) 594b. — o/ discount 
customs (N. Y.) 854d. — o/ amount received on deposit (Mass.) 558a. —prima facie, 
of deposit, where depositor kept no passbook and produces no record of deposits 



88 BANKS AND BANKING 



EVIDENCE— Continued 
Books of bank (continued) 

(La.) 457d. —of discharge of note (N. Y.) 894b. —of value of bank's assets (la.) 
311a. —of bank's dealings with notes held by it (S. D.) 1274c. —as showing similar 
transactions, to explain course of business (N. Y.) 987a. — on question of mistake in 
entry (Pa.) 1175e. —in action on deposit (Del.) 127a, (Mass.) 558a, (N. Y.) 1019b. 
— /;/ action for fraudulent representations, to show that bank regarded indorsers as 
solvent (Tenn.) 1320b. —to prove counterclaim, though barred by limitation (Cal.) 
73c. —to prove that non-resident is stockholder (Mich.) 612c. —if proved by clerk 
making entries, (Pa.) 1188b, if alive and within state (Ky.) 362b, (N. Y.) 965b. 
— if made by cashier (Del.) 127a. — z/" produced and vouched for by cashier (Tenn.) 
1320b. —of notice of dishonor, if entries be identified by clerk who made them, even 
though he does not recall circumstances (Mass.) 525b. — if entries were made by 
deceased cashier (Ky.) 353a. — if entries were made by deceased clerk whose hand- 
writing is proved (Mass.)521d. — if entries were made by clerk, since become insane, 
whose handwriting is proved (Mass.) 521d. 

are not evidence if kept by former cashier (Me.) 475a. — gentries were made by clerk 
not shown to be dead or to have disappeared (Pa.) 1173a. -^f overdraft if merely 
proved by stranger to be such (N. Y.) 899a. —as part of res gesta, if entries were 
not contemporaneous with the event (Wis.) 1414a. —if entries be unauthenticated 
(Pa.) 1174a. — of payment, if person making entries had no knowledge of payment 
(N. Y.) 1052b. — in action against sureties on cashier's bond, in absence of proof as 
to who made the entries, and of handwriting, custom, or duties (N. Y.) llOOd. 

are not conclusive as to ownership of deposit (Me.) 487d, 488a. — as to amount of de- 
posit (Neb.) 777a. —%s to discount (Me.) 462a. 

may be accepted by jury, in action on note, as against maker's direct testimony of fiill 
payment (N. Y.) 939c. 

introduced contrary to Code should be objected to at trial (la.) 297c. 

Conclusion of witness as to effect of book entries is not evidence (Ky.) 362b, 

Inference of cashier from books kept by predecessor is inadmissible (Me.) 475a. 

Correctness of entry cannot be shown by proof that bank clerk was carefiil (Minn.) 642b. 

Offer in evidence of bank books by president estops him to deny genuineness (Ga.) 141c. 

Oral proof of entries in bank books by witnesses acquiring information with defendant's 
consent is as competent as defendant's declaration (la.) 303b. 

Gash book (see Books) 

is prima facie evidence of cash on hand (Cal.) 80c. 

Check book (see Books) 

is admissible to show that nothing therein would excite suspicion of fraud on the part of 

its custodian (Md.) 508c. 
is inadmissible to show error in depositor's memorandum of account, where it does not 

appear that it was made up from check book alone (Md.) 508c. 

Confession 

of bank president, not party to suit, is inadmissible (Pa.) 1172b. 

Deposit slip 

is evidence prima facie of making deposits on dates named (Pa.) 1238d. 
is not suiEcient proof of special deposit, though issued instead of passbook, and bearing 
words "security for signing bond to be held by bank" (Wash.) 1384a. 

Judicial notice 

is taken of location of bank (Wash.) 1387a. — o/"fact that banks close at three o'clock 

(N. Y.) 1069a. 
is not taken of banking laws (Va.) 1368d. — o/ insolvency of bank in foreign state (N. Y.) 

1001b. 

THemorandum 

is not evidence of bank's actions, if not made by bank officials (R. I.) 1251d. 

Parol testimony 

is adinissible to explain entry in passbook (Me.) 468d, (Pa.) 1185a; mistake in entry in 
books of bank (Neb.) 777a; meaning of "cash item" (la.) 297c. — to prove outside 
facts, though bank books be in evidence (Ga.) 146c. — to prove that non-resident is 
stockholder of bank (Mich.) 612c. 

is sufficient to prove admission of correctness of entry in bank's book, though the record 
be not accounted for (Ark.) 50d. 

Passbook (see Books) 

is evidence as book of original entry (Mich.) 617a. — in action for deposit (111.) 239c. 
—o/ amount of deposit (Cal.) 82b, (Kan.) 336b. —o/ times of deposits (Kan.) 336b. 
— of account (Wis.) 1414c; even if in form of envelope (Mass.) 558a. — o/' date of 
balance (Wis.) 1414c. — in action for overdraft upon entire account (Pa.) 1243c. — z/"all 
entries be made by bank clerks (111.) 241a. — against bank to show discharge of 



INDEX 8Q 



EVIDENCE— Continued 
Passbook (continued) 

note (N. Y.) 894b. —in writing under Statute of Limitations (111.) 215a, 216c. Contra 

as to ten year Statute of Limitations (Mo.) 765d. 
is best evidence in suit for bank balance (S. C.) 1266d. 
is not conclusive (La.) 409d, (Me.) 468d, (Pa.) 1185a. —against bank (N. Y.) 853c. 

—proof of deposit (Me.) 490d. — as between depositor and bank (Mass.) 568d. 

— against illiterate person, on the question as to whom he intended to deposit with 

(Neb.) 806c. 
■may be identified by testimony (Cal.) 96b. 
Single entry in passbook is admissible to corroborate witness (Md.) 504a. — (/"introduced 

by depositor, gives other side right to use other entries (id. ) . 

Presumption 

exists that one, purchasing land from president of state depositary, knew that baak was 
required to give bond (Ga.) 163a. — that a letter, deposited in post office properly 
addressed, was received (Mo.) 749a. — that legislative enactment was validly passed 
(N. Y.) S69d. — that bank's advances were made on strength of securities deposited 
for collection (R.I.) 1255e. — that state has ratified assignment, where state has, for 
two years, without objection, dealt with property assigned to it by bank (Mich.) 601c. 

Private book 

of teller is evidence against surety on his bond (S. C.) 1257c. 

Refreshing memory 

from passbook is permissible (Cal.) 82b. 

from books of bank is permissible, in suit on teller's bond, in case of bank employees 
(Mo.) 736b. 

Secondary evidence 

may be given, in shape of affidavit, where bank disobeys order for inspection of books 
(Neb.) 780e. — of contents of note, by one sued for money collected thereon, only 
after first accounting for its absence (Mo.) 697b. 

Statement of account 

to customer, given weekly by bank, is evidence of debt (Cal.) 81b. 

Statute of Frauds 

does not cover oral promise to pay check sold (N. Y.) 1072a. — realty contract of bank, 
when partly performed (Va.) 1367d. 

Transactions with deceased 

Conversation vrith deceased agent of drawee may not be proved by testimony of member 

of firm indorsing check (Ky.) 363c. 
Under Code, sec. 829, questions relating to transactions with deceased are inadmissible in 

action on bond and note (N. Y.) 1022a. 

Vouchers 

are prima facie evidence of payment (Cal.) 81b. 

"Witness 

Bank teller may be asked whether he is in the habit of making mistakes (N. Y.) 853c. 

EXCHAIVOE 

chargeable for collecting drafts, if not a device to conceal usury (Wis.) 1401b. — on 
shipments may be included in overdraft for which note is security (Mo.) 735d. 

not chargeable against bank selling bill of exchange (Ky.) 352a. 

usurious if added to legal interest on renewal of loan, payable at same place (N. Y.) 937e. 

nat usurious if a, premium (N. Y.) 905c, where paper is payable in another county (Mo.) 
702e. — in addition to legal interest (N. Y.) 918a. — it is an agreement to purchase 
exchange in addition to legal interest (N. Y. ) 938a. — deducted on discounting bills 
payable in distant place (N. Y.) 875d. —loan is by draft on distant place (N. Y.) 877a. 

Debtor is not agent of creditor to procure exchange, and bank may stop payment of 
check for it (111.) 203a. 

Branch of State Bank may charge premium on note discounted where not payable (Mo. ) 
701e. 

EXECUTORS AND ADMISfllSTRATORS 

Action 

against . directors , representatives of deceased directors not necessary parties (Ga. ) 152a. 

cannot be maintained against administrator of joint contractor and survivors (Ala.) 13a. 

on certificate of deposit of testator does not arise until properly indorsed and presented 
by executor (N. Y.) 1101b, and burden is on administrator to identify intestate as de- 
positor (N. Y.) 1016b. 

Authority to sue, is sufficiently proved by showing intestate's death and plaintiff's ap- 
pointment and qualification (Mo.) 725a. 



90 BANKS AND BANKING 



EXECUTORS AND ADMINISTATORS— Continued 
Deposit— see Deposit 

Estate 

Promissory note is not entitled to preference against estate (Pa.) 1171a. 

Assignment 

of deposit fraudulently made by decedent, is payable to his administrator (Me.) 490e. 
not necessary to pass testator's stock to executor (Wis.) 1423c. 

Estoppel 

does not arise by appointment of donee causa mortis, as administratrix ( Conn. ) 124a. 
—in action by heir in representative capacity, though administrator has knowledge of 
intestate's fraudulent intent (la.) 309a. 

Insolvency- 
does not give administrator's receiver right to deposit (N. Y.) 926b. 

liable 

on intestate's agreement that savings bank deposit cannot be withdrawn without pro- 
ducing passbook (N. Y.) 905b. 
individually to cestui, for deposit in trust by testator (N. Y.) 1015d. 
to executor of cestui, for wrongful withdrawal of trust fund (N. Y.) 1028b. 
in action commenced against testator, a bank president, for misfeasance (N. Y.) i099b. 
as trustee, where intestate was trustee (Colo.) 102b. 

Not Hable 

for not examining relatives as to whereabouts of lost savings bank book (R. I.) 1254b. 

Payment 

to executor of trustee after notice by executor of cestui, is at bank's risk (N. Y.) 1028b. 
to depositor's administrator, without notice of claim, discharges bank (N. Y.) 1030a. 
to foreign administrator -vih&n one is in the state, makes bank liable (N. Y.) 1099c. 
of checks not signed as trustee, protects bank where administrator made deposit of checks 

indorsed as individual, to individual account (Ga.) 174b. 
to surviving joint depositor is ratified by her becoming administratrix of other joint 

depositors (N. Y.) 1014a. 

Powers 

Entitled to stand in place of depositor (N. J.) 844e. —to deposit to his own account 
(Pa.) 1246c. —to demand payment of certificate of deposit (Kan.) 331b. —to receive 
note for debt due estate (Ark.) 49d. —to set oflf claims (Me.) 464d. —to pay intes- 
tate's debts by check against general creditors (Va.) 1369a. —to transfer stock by 
power of attorney (Mass. ) 536d. — to claim deposits drawn by depositor and directed 
to be deposited for another, and so done after his death (N. Y.) 1052e. —to claim 
whole beneficial interest, less debts, if he is sole legatee (N. Y.) 1052e. —to deposit 
made by deceased administrator to his own account (Ga.) 174b. — to amount appro- 
priated by drawer of blank check (La.) 375b. —to administer fiand in state where 
located, though intestate is non-resident (Me.) 490e. 

Not entitled to deposit on which intestate gave check before death (Mo.) 724a. 

Failure to claim intestate's property by gift at judicial hearing raises presumption against 
gift (Mich.) 631e. 

Probate court 

Order necessary, to enable administrator to control land of deceased (Mo.) 758a, or sell 
personalty at private sale (Ind.) 261c. —to sell realty, consented to by mortgagee 
bank, releases mortgaged premises (La.) 387c. 

Stockholder's liability— see Stockholder's Liability 

FOUOCO IXSTRUMENTS 

Acceptance and Credit 

by bank makes it liable on forged check (Pa.) 1170a. 

Certification 

by bank of forged check renders it liable (N. Y.) 904b, 955b, 959a. —after payment by 
another bank will not protect the latter (La.) 434d. 

Collection 

and payment of proceeds before notice of forgery discharges collection bank from liability 

(N. Y.) 1029a, 1034a. 
bank, having customer's deposit covering amount collected on forged certificate of deposit, 
is liable to paying bank, unless bona fide holder (Md.) 498c. 

Damages 

In 'action for money received by bank on forged indorsement, measure of damages is 
amount with interest (N. Y.) 1006b. 



INDEX 91 



FORGED INSTRUMENTS— Continued 
Defenses 

Valid. Negligence in inspection of forgery, as defense to claim for restitution (N. Y.) 

967c. 
Invalid, That prior indorsement was forgery (Mass.) 524c, (Mo.) 752e. That bank paid 
without notice of forgery (Conn.) 115e, (N. Y.) 969d. Delay in notice of forgery unless 
injurious (Cal. ) 74b. Failure to produce forged checks, wrongfully paid by bank 
(N. Y.) 969d. That subsequent holder neglected to return counterfeit bill to prior 
holder (N. Y. ) 940e. That drawer was negligent in issuing check, where bank paying 
forged check was not misled thereby (Ohio) 1152a. 
Demand 

Unnecessary for repayment of altered dhecks paid, in order to recover (Cal.) 64c. —for 
taking check with forged indorsement, in order to sue (N. Y. ) 1041b. 

Deposit 

Bank paying forged check deposited by bona fide holder may charge it back to depositor 

(Ind. Ter.) 582b. 
An account stated maybe opened by showing that checks were forgeries (N. Y.) 902b. 

Duties of Parties 

Bank. Negligence in payment is measured by standard of skilled person (N. Y.) 1022c. 
Detiositor held to ordinary care in questions of forgery (N. Y.) 998b, and reasonable 

notice (Mo.) 735b. — not bound to examine passbook and vouchers for forgeries 

(N. Y.) 1047c. 
Drawer learning of forgery of payee's name should demand check or money (Cal.) 99d. 
//b/ifer must show due care and caution (Ind.) 247b. — must examine and return forged 

notes speedily (Mass.) 521a. — ot«j/ return bill as soon as he has satisfactory evidence 

of forgery (N. Y.) 940e. 
Indorser owes payee no duty to discover forgery (Ala.) 35a. 

^Estoppel 

Acceptance does not estop acceptor from showing fraudulent alteration (N. Y.) 1003d. 

Depositor not prejudiced by receiving back forged check, under mistake of fact (N. Y.) 
1006c. — not estopped from setting up forgery of checks on his account, where he had 
done nothing to give them currency (N. Y.) 902b. — cannofhoXA bank for payment of 
subsequent forged check, after definite knowledge and notice of forgeries (La.) 432c. 
— alloimng wife to sign checks must bear loss from unauthorized checks drawn by her 
(Ind.) 279d. 

Drawee not estopped to recover by promise to pay made in ignorance of existing altera- 
tion (Ind.) 263b. — estopped by its own negligence from insisting on implied warranty 
of genuineness by holder (Pa.) 1247a. 

Party to bill of exchange estopped to deny genuineness of payee's indorsement (Ky.) 356a. 

Payee of check, paid on his forged indorsement, cannot recover from drawer if he has 
misled him (Mass.) 591d. 

Evidence 

of alterations made before negotiation is admissible under general denial (Mo.) 735a. 
by bank, that payee had been reimbursed by forger, inadmissible in action by drawer 

against bank for paying deposits on forged draft (N. Y.) 1034b. 
by banker, that he lost his own money in loan on forged securities, admissible (N. Y.) 1055a. 
of no dealings with payee admissible in action by depositor (N. Y.) 1053a. 
that handwriting in body of altered check is different from signature raises no presump- 
tion of negligence ( Cal. ) 64c. 
of payee, whose name is forged, is competent, as between acceptor and collecting bank, 

as to forgery (N. Y.) 873d. 
of rules of clearing house not admissible to prove negligent ratification of forgery (Pa.) 

1204e. 
of si-inilar payments not admissible in action by depositor for payment on altered check 

(Mass.) 567c. 
Bank not presumed negligent, where evidence is not produced that forgery of check was 

ascertainable by inspection (Pa.) 1246a. 
Drawee's ignorance of existing alteration no bar to recovery from holder (Ind.) 263b. 
Drawee presumed to have better knowledge of drawer's signature than holder (La.) 

437b, and local custom relieving from this presumption inadmissible (Tex.) 1337d. 
Drawer's book's failure to show receipt of proceeds of check inadmissible in action to 

recover deposits paid out on forged checks (Md.) 508c. 
No presumption, without evidence, that checks are forged (N. Y.) 1053d. 

'Guaranty 

made, as to signature of draft, by one presenting it to bank for payment (N. Y.) 888a. 
not made by mere statement that check is all right (N. Y.) 1078b. 

IHolder 

One havivg no notice of forgery may become bona fide holder (N. Y.) 955b, 955c. 
Bank giving credit to bona fide holder of forged check cannot cancel credit on discovery 
of forgery (Pa.) 1170b. 



92 BANKS AND BANKING 



FORGED INSTRUMENTS— Continued 
Holder (continue.i) 

Collecting bank receiving payment of forged certificate not bona fide holder, when deposi- 
tor has funds covering amount (Md.) 488c. 
Drawer of check cannot recover avails paid by drawer to bona fide holder under forged 

indorsement (Pa.) 1247a. 
Holder from bank of counterfeit bill is not bound to bank to redeem it, if returned by 
subsequent holder after unreasonable delay (N. Y.) 940e. 

Indorsement 

of draft "for collection" does not discharge warranty of prior indorsements (Mo.) 752e. 

not in handwriting of payees presumptively in-valid (111.) 196d. 

of name of fictitious payee, ior^^exj (Neb.) 800b. 

of payee^s name, whether forged or genuine, on forged check immaterial as far as bank's 

liability on certification is concerned (N. Y.) 955b, 955c. 
relied on by drawer, because bank paid check on forged indorsements, renders bank liable 

for resulting loss (Ind.) 274c, (Ohio) 1143c. 
forged hy clerk does not render him authorized recipient of check or proceeds (N. Y.) 

1041b. 
by unauthorized agent presenting altered check, does not bind principal as indorser or 

guarantor (N. Y.) 1034a. 

Knowledge 

of signature, but not of body of bill, chargeable to drawee (N. Y.) 1080b. 
of clerk who forged checks and himself examined deposit book, not chargeable to depositor 
(N. Y.) 902b. 

Liability 

Bank having title to certified check, is not liable to drawer, victim of fraud (N. Y.) 
965d. — collecting forged check through another bank is not liable for latter's negli- 
gence (la.) 307c. —paying check on forged indorsement is liable to drawee, injured 
by reliance thereon (Ohio) 1143c. — receiving proceeds of raised check is liable there- 
for (N. Y.) 1037b, (Pa.) 1227a. 

Directors have no power to bind bank on forged notes (Mass.) 520e. 

One receiving proceeds of raised check is liable, unless injured by bank's negligence (N. Y.) 
1078b. 

Principal is liable to paying bank on check, left signed in blank with agent, and sub- 
sequently stolen and filled in (Ind.) 275d. 

MutUation 

of bank bill requiring names, dates and amounts to be reprinted, is notice of forgery 
(Ky.) 354b. 

Negligence 

What constitutes : Certifying check carelessly drawn (La.) 437a. 

What does not constitute: Bank's failure to give notice of forgery received after payment 
(N. Y.) 1050a; or to discover forgery for six weeks (Tex.) 1323c. Depositor's pos- 
session of facsimile stamp of his signature (Pa.) 1240b. Drawee, not knowing that 
depositor of forged check was stranger to paying bank (Md.) 504c. Failure to dis- 
cover forgery of indorsement for three years (D. C.) 131b. 

Notary 

though negligent, is not liable for payment by bank on forged indorsement (Cal.) 76b. 

Notice 

of forgery not given, does not discharge bank, when not injured thereby (Ind.) 273c, 

(Kan.) 312c, (N. Y.) 1059b. 
given by U. S. paymaster is notice by government (D. C.) 131b. 

not given by maker to payees, does not affect their claim against bank (N. J.) 845b. 
should be given in reasonable time (Pa.) 1232c, which depends upon circumstances (Ind.) 
273c; next day is reasonable time (Mo.) 711b. 

Payee 

indorsing forged check of stranger is liable to drawee paying it (Mass.) 553a. 
of forged check is no real payee (N. Y.) 955b. 

being fictitious, check is not payable to "bearer" under 1 R. S. 768, sec. 5 (N. Y.) 1039e. 
of check paid on forged indorsement cannot recover on drawee's refusal to pay check 
when again presented (ilass.) 591d. 

Payer 

of forged check cannot recover against bona fide payee (Miss.) 645b. 

Payment 

Counterfeit bank bill. Debt not discharged thereby (Mo.) 717a, (N. Y.) 950d, and 
creditor offering to return it may demand his due (Mo.) 717a. Mistake of fact cannot 
be claimed where paid knowingly (N. Y.) 1080b. 



INDEX 93 



FORGED INSTRUMENTS— Continued 
Payment (continued) 
Forged check 

2J /aiV at batjk's peril (Cal.) 74b, (Neb.) 775b. 

Bank bears loss (Ga.) 167a, (Ky.) 373d, (La.) 398a, (N. Y.) 904a, 1097f, (Pa.) 
1210c, (Utah) 1342c. —without notice to payee (N. J.) 845b. —unless holder 
or indorser was negligent (Ky.) 366a, (Md.) 504c. — unless there is a cogent 
reason for shifting loss on customer (Mo.) 755a. — unless depositor's negligence 
directly contributes (N. Y.) 902b, (Va.) 1380b. —as against indorser (Me.) 491a. 
— as against owner (N. J.) 828d, and cannot shift loss on innocent payee (Md.) 
504c, (Tex.) 1335d. —although not presented for a year (N. Y.) 904b. —where 
depositor receives back check by mistake (N. Y.) 1006c. 
Bank does not bear loss where drawer's negligence aided forgery (La.) 419a, 432e. 

— when without notice of drawer's fraud (Ind.) 281a. 
Effect may be waived by collecting bank (N. Y.) 955d. When made by same person 
and deposited in two banks, each paying other, is same as if forger drew and paid 
(N. Y.) 1076a. 
Retention for two months by drawee imports proper payment (Vt.) 1347d. 
Recovery of money paid by drawee not allowed where paid to bona fide payee (111.) 
196b, (N. Y.) 942a, or holder (Mass.) 596b. — by indorser under mistake of law 
is not allowed (Me.) 491d. — not barred by acceptance of payment on forged 
check under act 1849 (Pa.) 1232c. 
Setoff not allowed unless drawer is grossly negligent (N. Y.) 882b. 
Voluntary repayment not made by return through clearing house resulting in debit 
to payee (N. Y.) 942a. 
■of forged draft by drawee prevents repudiation of acceptance or recovery of money paid, 
(N. Y.) 954a. Loss falls on drawee paying after discount and presentment for accept- 
ance by bank (La.) 437b. By mutual mistake when without fault, recoverable (N. Y.) 
974a. Without inspection on notary's notice is neither wrong nor neglectful (N. Y.) 
891c. Without notice, bank may regard holder as owner, though agent (N. Y.) 888a. 
by forged note. Satisfaction of executors will be set aside on discovery of forgery (Ky. ) 354e. 
on forged order not protected by by-law protecting payment on presentation of passbook 
(Mass.) 576b. — by savings bank with due care, discharges it from liability (N. Y.) 966d. 
by forged renewal note bars action on original note (Ky.) 349b. 

Forged Indorsement 

Certificate of deposit. Bank, on payment still liable to depositor (Ind.) 274b, and 
to true holder (N. Y.) 874a. 

Check. Payment is at bank's peril (111.) 229d, (la.) 301c. Bank must bear loss (Ky..) 
373d, (N. Y.) 982a, (Pa.) 1310d, (Tenn.) 1318a; contra, where drawer believed in- 
dorser to be payee named (Pa.) 1248a. Drawer can recover face of check (Ga.) 166c. 
Drawee is liable to drawer if payee has not received check (111.) 234c, as against payee 
(La.) 426b, or as against depositor (N. J.) 845b, though he is payee's assignee 
(Mass.) 592a. Demand on bank is unnecessary (N. Y.) 1041b. Bank is liable for 
payment on agent's forged indorsement, though informed of agent's authority to draw 
similar checks (N. Y.) 1094e. Bank may recover payment made to holder (111.) 226c, 
but not from maker (Cal.) 99d. Payee cannot recover from drawee (Mo.) 752d. 
Bank giving its check for debt and paying it on forged indorsement, does not 
discharge debt (N. Y.) 994c. 

Draft. Payment is at bank's risk (La.) 399a, and good faith does not make payment 
on forged indorsement valid (N. Y.) 1034b. 

Presentment 

of check by forger of indorsement is not sufficient demand to give drawer cause of action 
against drawee (N. Y.) 996b. 

delayed by holder immaterial where drawee pays before discovery of forgery (Pa.) 1170a. 

of passbook and forged signature relieves bank from liability for payment, if ordinary- 
care is used (N. Y.) 971c. 

Batiflcation 

effected by acceptance of a payer's note by payee of check paid on forged indorsement 

(Ga.) 171c. 
of forged certification effected by teller's admission that check is good (N. Y.) 959a. 
of forged indorsement on its bill by firm presenting it for discount (N. Y.) 885d. 
not effected by president's receipt of proceeds of note forged by cashier (Kan.) 328d, or 

by statement that forger would settle (N. J.) 845b, or in case of subsequent forgery, 

by ratification of fraud in procuring check (Ohio) 1152a. 

Kedemption 

may be enforced by prior holder of counterfeit bill, although returned by subsequent 
holder after unreasonable delay (N. Y.) 940e. 

Eemedy 

against maker of negotiable check completely lost by fraudulent alteration (N. Y.) 1017d. 
Assumpsit lies for recovery of payment on forged check (D., C.) 131b, or forged draft 
(111.) 242a, (N. Y.) 1034b. 



94 BANKS AND BANKING 



FORGED INSTRUMENTS— Continued 
Return 

Counterfeit bank bill. Question of negligence is for jury (Mo.) 717a, (N. Y.) 940e, Duty- 
arises when holder has satisfactory evidence that it is spurious (N. Y.) 940e. Delay 
of subsequent holder to return to prior, in reasonable time, not' available to bank 
(N. Y.) 940e. 
Forged notes. Failure of holder to examine and return is negligence, preventing recovery 
(Mass.) 521a. 

Rights of Parties 

Bank bill circulated by drawer with his forged indorsement, may be regarded by holder 
as payable to bearer (N. Y.) 885d. 

Check. Depositor can recover money paid out on forged check (D. C.) 131b, (N. Y.) 
1039e; where no loss to bank by his failure to discover forgeries (Mo.) 735b. 

Drawee, before remitting proceeds may charge back on discovering forgery (Ala.) 35a. 
— recovering check from paying bank may presume paying bank required proof of 
genuineness (Neb.) 775b. — wzaj/ recover money paid on forged check (Cal.) 64c, (la.) 
301c, (N. J.) 828d, where party receiving was negligent (Tenn.) 1310c, (Tex.) 1321b, 
but cannot recover where holder was not negligent (la.) 307c, (Mass.) 596b. — may 
withdraw credit given on forged check on discovering forgery (Neb.) 775b. 

Oivner may sue holder and collecting bank, under forged indorsement (N. Y.) 951a. 

Payee cannot recover against bank paying on forged indorsement, after cancellation of 
payment and restoration to drawer (Ga.) 167d. 

Draft. Acceptor, discovering forgery and giving prompt notice, may recover money from 
collecting bank (N. Y.) 873d, 886b. 

Z'raze'^^ may recover money paid on forged draft, if not negligent (N. Y.) 1057c; from 
collecting agent if still in possession of money (Pa.) 1200d. 

Indorser not entitled to notice, where no default in payment or acceptance of forged 
draft (Mo.) 752e. 

Note. Bank may cancel credit given on forged note (Pa.) 1246b. 

Setoff 

is allowed pro tanto, where forged U. S. note is part consideration on bill (Md.) 497b. 
not allowed to bank when sued by depositor for money paid on forged order, for resti- 
tution made by forger to depositor (N. Y.) 1010a. 

Statute of Limitations 

begins to run against depositor, from demand on discovery of forgery (N. Y.) 1006c. 

Stock certificate 

must be issued by bank to replace one canceled by it for forgery in transfer (N. Y. ) 
894c. 

Surety 

on note is bound, though prior signatures were forged (Me.) 481b. 

on genuine note not discharged by acceptance by bank of renewal note on which sure- 
ties' names have been forged, if not injured (Mo.) 741c, nor by bank's failure to 
give notice of forgery (id.). 

Title 

of bona fide holder of forged check no better than forger's (Ind. Ter.) 282b. 

to forged check cannot be acquired by holder or bank (N. J.) 828d. — not acquired by 

bona fide purchaser (N. Y.) 973b. 
to proceeds of forged note is in owner as against payee (Ala.) 35a. 

"Waiver 

of effect of payment of forged check by drawee can be made by collecting bank (N. Y.) 
955d. 

FRANCHISE 

(See Charter) 

includes right to exercise bank powers (Ala.) 2a. — right of corporation to contract 
(N. Y.) 921b. -privilege of office of director of state bank (Ark.) 41c. 

sut rendered by transfer of assets for purpose of liquidation (Ohio) 1144a, and not re- 
vived by bank regaining solvency (Mich.) 604d. 

not terminated or assigned by sale of railroad it was organized to build (Miss.) 677b. 

Action for violation barred by Statute of Limitations (Ohio) 1136c. 

Effect. Carries corresponding obligations (N. Y.) 884a. Is taxable (N. Y.) 945a, and 
is public injury, if abused (Vt.) 1359d. State not estopped to deny right to franchise, 
except by statute (Mo.) 757b. 

FRAUD 
Damages 

for fraudulent pledge of stock may be recovered even after right to repudiate transac- 
tion is lost through laches (N. Y.) 916c. 

Measure of damages for "ote on fraudulent proxy, defeating election of bank president, 
is one year's salary (i5a.) 173c. —for false representations as to solvency of vendee. 



INDEX 95 

FRAUD— Continued 
Damages (continued) 

is value of property at time of sale, less any payment and the value of security taken 
(Colo.) 105c. 

Definition 

It is not fraud for banker to accept check from heir at law of deceased depositor, with- 
out mentioning deposit by deceased (Ind.) 275e. —for bank, knowing its debtor had 
received advances from a merchant, to induce the debtor to draw in bank's favor on 
consignment to merchant (Neb.) 783d. 

To constitute fraud by directors, false representations by them must have been made with 
intent to deceive, in material matters peculiarly within their knowledge, and the other 
party must have relied thereon though he used vigilance (Mo.) 717d. 

Evidence 

of representations not communicated to plaintiff is not admissible in suit to recover for loss 
of deposits induced by such representations (Tex.) 1329c. 

as to whether one considered notes ample security is inadmissible in suit for fraud in making 
loans (Utah) 1346a. 

of depositor's assets at death is proper to r^but collusion (N. H.) 818d. 

of fraud must be complete, in action by one bank against another for false representa- 
tions inducing discount (Tenn.) 1320b. 

Intent to defraud creditors may be proved by taking certificate of deposit in name of 
another (la.) 309a. 

Fraud is not established, where statute required specie to be paid into bank within two 
years after incorporation, by its immediate withdrawal when so paid in (Mich.) 600b. 

Liability 

Bank appropriating, without notice of fraud, money fraudulently obtained, is liable to 
real owner (Mass.) 547b. 

Notice 

Absence of notice of fraud must be shown by bank suing on note fraudulently obtained 
(la.) 302a. 

Parties 

to fraud may include bank (N. Y.) 1016c. — include one depositing check with drawee 
knowing that drawer has no funds (Pa.) 1196b. — do not include one who, by fraud 
of cashier of which he is ignorant, accepts bank's certificate in lieu of one on an in- 
solvent concern (Ohio) 1157d. 

Questions of law and fact 

Questions for jury include question whether there was attempt within reasonable time to 
rescind sale for fraud (Neb.) 789b. — include question whether bank was guilty of 
fraud in making representations concerning financial affairs of customer (Ga.) 972d. 

Representations 

concerning fact of which person had no knowledge, followed by damage, constitute fraud 

(Colo.) 103b. 
as to firm's financial condition are not proved fraudulent by subsequent insolvency (la.) 

298c. 
stated as facts, though really opinions, may be fraudulent (Colo.) 105c. 

Statute of Limitations 

does not run against actiou for fraud until discovery (Neb.) 805d, (R. I.) 1254d, (Tenn.) 
1312b; of facts sufficient to put one upon inquiry (Utah) 1346a; in case of suit in 
equity (Del.) 129b. — where delay is caused by defendant (Conn.) 118a. 

Laches, short of statute of limitations, is no defense in action by bank for damages for 
fraudulent pledge of stock (N. Y.) 916c. 

Threatened fraud 

at time of application for receivership is not rectified by subsequent reduction of bank's 
circulation (R. I.) 1251a. 

Title 

does not pass to money obtained by fraud (Mass.) 547b, if it remains in original pack- 
ages (Pa.) 1243d. 

G\RVISHME!VT 

(See Attachments) 

GIFTS 

Check not presented before death of donor is revoked, (Ohio) 1155b. — is incomplete 
until paid or accepted (id.) . —founded on full consideration, good as gift causa mortis 
(Me.) 490b. 

Delivery must be made in donor'' s lifetime, of certificate of deposit (111.) 222c. — of 
check by donor himself (Mo.) 722b. —o/" passbook (Me.) 487c. 



96 BANKS AND BANKING 



GIFTS— Continued 
Deposit. See Deposit. 

Stock assigned to donee and placed in sealed envelope to be opened after death, though 
donor reserves dividends, is valid (Cal.) 93a. 

GOVERNOR 

(See Public Officers) 

ORACE-DAYS OF 

Bill of Exchange 

Instrument drawn on A, payable to order of B at 60 days, is a bill of exchange, entitled 
to grace (N. Y.) 872d. 

Certificate of Deposit 

protested vrithout grace according to custom, does not render bank liable for negligence 
(la.) 289b. 

Check 

is payable on demand (Minn.) 641a. 

payable at a future day is entitled to grace (Mo.) 703c, (Ohio) 1148a; and notice (Cal.) 
62c; contra (Mass.) 585b. 

Days of Grace 

Statute fixing interest on 4 months' notes at one rate, and on notes over 4 months at 
a higher rate, has no reference to days of grace (Miss.) 665b. 

Post-note 

is entitled to grace by statute (Mass.) 527c. 

Promissory note 

omitting negotiable words, is entitled to grace by usage (Md.) 498a. 

payable at bank has three days of grace ( Conn. ) 108b. 

may be negotiated before expiration of days of grace (Conn.) 111c. 

payable "first day of May next fixed" is payable May 1 without grace (La.) 875a. 

Suit brought on last day of grace without demand is premature (Me. ) 471b. 

OtJARANTY 

Acceptance 

not needed of letter of credit or guaranty (Cal.) 92a. 

of proceeds of unauthorized guaranty is ratification (Mo.) 760d. 

Consideration 

is im,material in an action for conversion of notes (N. Y.) 957e. 
Continuance of business is consideration for a guaranty (N. Y.) 989a. 

Construction and Effect 

Extends to substitutions, renewals and extensions (Conn.) 123b, (Neb.) 800a. 

Does not affect title to stock transferred in sequestration proceedings (Ga.) 153c. 

Gives guarantor, on payment, the rights of holder (111.) 229a. 

Makes subsequent deposits applicable to subsequent transactions (111.) 241c. 

Does not extend to one not known to guarantor (111.) 241c. 

Does not affect ofiicer of insolvent bank until notice that note is due (Kan.) 381a. 

Is not void by failure to secure bank commissioner's certificate (Kan.) 332a; or by 

usury (Md.) 509a. 
Does not extend to accommodation paper made by person guaranteed (Mass.) 538c. 
Does not bind wife who gave it without consideration, when bank knew proceeds were 

to be applied to husband's debt (Mich.) 621a. 
Is void if principal contract is (N. Y.) 884b. 
Under seal gives prima facie cause of action (N. Y. ) 900c. 
Renders guarantor liable without suit against debtor (Pa.) 1175a. 
By state bank and recognized by state is binding (S. C.) 1264d; but principles of law 

and equity not applicable if state is original debtor (S. C.) 1264d. 
Bank president' s guaranty does not warrant inference that bank had power to guaranty 

accommodation paper (S. D.) 1282c. 
By private banker to pay bills taken over by organized bank is one of payment and 

not of collectibility (Neb.) 800a. 
Gives no right against sheriif holding funds or prior guarantor, without notice of 

judgment debtor's insolvency (Pa.) 1175a. 
May be enforced without protest after maturity of note (Pa.) 1219a; 

Definition 

What constitutes: Statement that a bill "is perfectly safe" (Ohio) 1148b; contra (N. Y.) 
1078b. Contract by private bankers to pay bills taken over by organized bank 
(Neb.) 800a. Issue of cashier's check for check on another bank (HI.) 229a. 



INDEX 97 



GUARANTY— Continued 
Definition (continued) 

What is not: Director's agreement to bear loss on unauthorized discount (Tenn.) 1289c, 

Evidence 

that it was the basis of the discount, is shown by subsequent discounts (Md.) 509a. 
{parol) is not admissible to restrict, or to deny the power to make a guaranty (Md.) 
509a, (N, C.) 1127a. 

Termination 

Terminates with guarantor's death (Cal.) 98d. —after changing collateral and ex- 
tending time (Mich.) 626d. — when dissolving guarantor firm gives notice, and it is 
not revived by partner stating he thought guaranty good (N. Y.) 979c. 

Does not terminate by taking principal's note (Cal.) 92a; or by change in business 
(N. Y.) 981c. 

CiVARDIAlV AND WARD 

Guardian is not liable for loss in selecting collection agent, if due care is used (Kan.) 
329c. —for depositing ward's money temporarily, such deposit not being an invest- 
ment (Pa.) 1228d. 

ISfCORPORATIOST 

(See Banks, Corporations, Organization) 

Ij^DEIdKITir 

cannot be required on lost unindorsed certificate of deposit (Ind.) 260d; or on giving 

new for mutilated bill (N. Y.) 930b. 
against stockholder's liability does not extend to expenses in suit which denies such 

liability (Me.) 470a. 
Bond promising to pay on demand, with interest, does not make interest run from 

date of contract, but from time of payment (Fla.) 136c. 
Bond given by bank as state depository gives state prior lien for debt due it (Ga.) 162b. 
Judgment on bond does not give lieu on property after appointment of receiver (la.) 

294d. 
Substitution of bond under illegal statute does not release original obligor ( Wis. ) 404c. 
See also Lost Instruments. 

indorsehieivt 

(See Checks, Drafts, Promissory Notes) 

IWJUNCTIOX 

Dissolution 

of injunction against insolvent bank, will not be granted where answer admits equity of 

bill, but sets up new matter (Mich.) 599a. 
from insufficiency, will be granted where injunction merely restrains officers of bank, who 

are defrauding stockholders, from holding an election (la.) 286b. 

Orounds 

Issues against officer making usurious discounts (Pa.) 1189a. —judgment on equitable 
setoff (N. J.) 840d. — liquidation on deposit for redemption of bank bills (111.) 185d. 
— directors mismanaging a bank (Cal.) 74c. — threatened as well as actual fraud to 
bank's creditors, under statute (R. I.) 1251a. — bank for failure to pay debts only 
when right thereto is clearly established (Mich.) 597b. — 5ara/^ for immediately impend- 
ing insolvency and danger to rights of creditors (id. ) . 

Does not issue in favor of receiver to enjoin creditor's action to enforce stockholder's 
liability (Kan.) 339a. — to enjoin sale of property attached before receiver's appoint- 
ment (Neb.) 785d. — in favor of assignee, to enjoin mortgage duly authorized by bank, 
as illegal increase of capital (Pa.) 1208d. — to settle questions of charter rights of 
bank (N. Y.) 855c. — against trust company holding itself out for banking business 
(N. Y.) 1043a. — against bank which has stopped payment, even though forfeiture be 
alleged (Mich.) 598a. — against threats of bank commissioners to begin suit for re- 
fusal to allow them to examine books (Cal.) 67c. — out of state court to enjoin na- 
tional bank (Mass.) 587a. 

Jurisdiction 

District judge having power by statute to grant an injunction in his district, cannot grant 

one against a bank located outside (Miss.) 668c. 
Supreme Court may issue peremptory mandamus to circuit judge to grant injunction 

(Ark.) 42c. 

Misnomer 

Bank misnamed in a restraining order is not bound thereby (Va.) 1369d. 



98 BANKS AND BANKING 



INJUNCTION— Continued 
Parties 

Cashier is not a corporator, and not a necessary party defendant (Miss.) 664b. 
Bank derives no aid by making the State a party complainant with it (Ark.) 52a. 

Restraining suits at law 

Execution not rendered inoperative by injunction directing appHcation of proceeds of 

levy without release of errors in judgment (Ala.) 8a. 
Proceedings on invalid foreign judgment not restrained by injunction (Ala.) 3a. 

Taxation— see Taxation 

I]NSOL,VE5fCY 

Assets 

include notes taken in payment of other notes (N. Y.) 1070d. —notes given by directors 
to make bank solvent (N. Y.) 1070d. — balances for unpaid subscriptions to capital 
stock (Wis.) 1427a. —assets of branch bank (N. C.) 1124d. —notes of depositors 
only as to balances due thereon after crediting amount due each depositor (Ga.) 170a. 

do not include notes for whose payment bank has received money (D. C.) 132a. . — note 
given for special purpose, which failed (Ala.) 34b. 

Acceptance of share in assets as full discharge of claim cannot be compelled from non- 
participator (N. C.) 1112c. 

Application of assets to debts can be compelled by creditor (Ga.) 161c. 

Bank may share pro rata in ''assets for excess of claim over deposit (Ga.) 171a. 

Bill holder shwcts in assets according to amount paid for his bill (Ga.) 154b. — is not en- 
titled to preference (Mass.) 540d. 

Distribution proceedings pending do not delay decree enforcing director's liability (111.) 
203b. —made to creditors pro rata (N. C.) 1124d, (S. D.) 1284a, with payment to 
noteholders first (Tenn.) 1302a. Claimant must show that assets were legally dis- 
tributable (Colo.) 108a. 

District court may allow application to share in assets (Kan.) 339b. 

Funds of insolvent bank go to creditors onlv (Cal.) 90b, although including public 
funds (Tenn.) 1300a. 

Jurisdiction. Chancery may assume control and distribution of assets (Tenn.) 1300b. 

Lien of creditors on assets is purely equitable (N. Y.) 990c. 

Possession allowed to agent appointed by Congress to wind up bank (Cal.) 84c. 

Sharing in assets allowed to creditor for excess beyond collateral (Kan.) 334e; in spite 
of subsequent legislation (Kan.) 339b, (Tenn.) 1300a. —to billholders (Mass.) 531a 
and depositors (id.). — among all creditors of agent branch bank equally (N. C.) 
1124d. —to general creditor, ratably (Vt.) 1365d. —to general depositor equally 
with other creditors (Okla.) 1166b. — to shareholder after payment of debts (S. C.) 
1269a. 

Transfer of note, to State, by insolvent bank valid as against maker (Tenn.) 1301c. 
— o/bill of exchange to director of insolvent bank, in good faith, is valid (Vt.) 1352b. 

Trust fund. Assets of insolvent bank are trust fund for benefit of creditors (Mo.) 733b, 
(S. C.) 1264d, and stockholders (Tenn.) 1300b; contra, as to draft of insolvent bank 
for debt due from third party (Miss.) 690a. 

Assignment for Benefit of Creditors 
Assignee 

can be deprived of property by court of Chancery (111.) 184d. — be authorized to 
compromise with depositors (Miss.) 668a, and statute permitting compromise by 
two does not authorize such act by one (111.) 183a. —pay off dissenting creditors 
and defeat proceedings attacking assignment (Miss.) 683e. — exer'cise bank's right to 
annul fraudulent sale (Mo.) 716b. —sue on bond (N. H.) 817a. —recover deposit 
applied to assignor's draft due after assignment (N. Y.) 900a. — hold bank for pay- 
ment of check two days after assignment (Pa.) 1202b. — r(?coz/«r penalty for usury 
paid by assignor (Pa.) 1214b. 

Cannot be deprived of property by Governor (111.) 184d, or of safe in his possession, with 
title reserved, without order of court, though subject to claim of owner (111.) 233b. 
— reclaim note, indorsed to bank to be applied to other notes, where bank holds it 
for collection (Mass.) 524b. — enforce stockholder's statutory liability for bank's 
debts (Colo.) 106a, (Ind.) 276b. — at^W/ counterclaims by virtue of implied special 
powers (Mo.) 722d. — recover pledge to secure acceptances without indemnifying 
pledgee (N. Y.) 1009b. — be charged as trustee unless holding funds collected by as- 
signor as agent (Colo.) 104c. — have execution returned nulla bona without notice 
of levy (Ga.) 144e. 

Duty to receive bank's notes in payment of debts to it (Pa.) 1191b. — to resort to- 
stockholders must be fulfilled before account allowed (Pa.) 1195b. — to collect assets 
sufficient to pay debts (Wis.) 1427a. 

Liable to suit by receiver under U. S. R. S., sec. 5151, (Colo.) 107c. 

Not liable under statute making bank liable to holders of repudiated notes (Ga.) 141a. 
— to purchaser of stock, for president's false representations as to bank's solvency 
(Minn.) 644d. 

In General. Assignee represents bank, not creditors (Mo.) 716b. —is proper plaintiff in 



INDEX 99 



) [INSOLVENCY— Continued 

Assignment for Benefit of Creditors (continued) 

Assignee (continued) 

bill to enforce stockholders' liability (Pa.) 1207d. — t/iiisi be joined as defendant in 
action to enforce officer's liability (Wis.) 1428a. — o/" insolvent estate represents cred- 
itors in action to enforce a trust (Wis.) 14'12b. — An:j exclusive right to collect sub- 
scriptions to stock (Ga. ) 160d. — stKceeds to right of bank as of time of assignment 
(Neb.) 788b. — takes property of bank, subject to equities (Mo.) 723a. Appoint- 
ment of assignee does not affect pledgee's right to require transfer of pledged stock 
(Ohio) 1156a, and liability is same as debtor's, in suit by bank after debt due 
(111.) 221a. Deed empowering assignee to sell bank bills is not fraudulent in law 
(Miss.) 668c. Title protects creditors from subsequent demands (W. Va.) 1391b. 
Attachtnent will not lie where identity of assigned property is lost (N. Y.) 939d. — of 
stock in name of former holder for his debts not allowed (Mass.) 569a. — of assets 
in hands of bank examiner, by creditor, not allowed (Neb.) 802a. — original or. 
auxiliary lies against non-resident debtor, by creditor (Tenn.) 1293b. 
Creditors may enforce stockholder's liability independent of assignee (Colo.) 106a. — can- 
not apply for receiver of bank's estate in hands of assignee under state law (Minn.) 
647b. — cannot recover money paid in discharge of non-collectible debt (Ohio) 
1141c. — obtain no new right by payment of New York banks to assignee (111.) 230c. 
Deed cannot be set aside four years later (Mo.) 732c. 
Demand not necessary in action against assignee for proceeds of paper sent for collection 

(N. Y.) 1030b. 
Effect. Divests assignor of his property eo instanti (Okla.) 1165a. Passes title to for- 
eign assignees as against attaching creditors (Ind.) 279a. Passes subscriptions to 
capital stock as part of assets (Mo.) 739b. Profits become a trust fund for creditors 
(Miss.) 668a. Officers do not become trustees (Pa.) 1212a. Rights of parties be- 
come fixed (Wis.) 1415a. No property remains on which sequestration proceedings 
can operate (Wis.) 1415c. 
Estoppel. Assignee of bank is estopped from denying liability for trust funds wrongfully 
paid (Ala.) 33b. Bank is not estopped to assert title to property not in hands of 
assignee, by consent to sale of collateral pledged (Ark.) 55d. 
Evidence of insolvency is created by assignment of bank (Mich.) 597a. Judicial notice 
must be taken of assignee's appointment (Ga.) 144e. Authenticated copy of deed is 
sufficient to prove assignment (W. Va.) 1394b. 
Fravdulent only at instance of creditors, where issued prior to dissolution (Miss.) 683e. 
General assignment not prohibited by act prohibiting bank from transfer of evidences of 
debt (Miss.) 668c. — to one creditor not necessarily invalid, where no agreement to 
transfer after acquired property (Pa.) 1244c. 
Interest allowed on claim, to date of appointment of assignee (N. H.) 820c. 
Liability for loss of assets, by assignee selected by bank, is on directors (Ga.) 152a. 
— of officers of savings bank for fraud cannot be enforced by depositors after assign- 
ment (N. H.) 817d. 
Partial assignments cannot defeat preference of U. S. in insolvency under Act of Congress 

(La.) 399d. 
Payment tendered by debtor, in bank's bills to its assignee is good (N. C.) 1108c. — of 

part by assignee leaves right to proceed in equity for residue (Ga.) 161d. 
Presentment of claim to assignee does not bind claimant to assignment (N. Y.) 1077d. 
Power to make assignment lies in bank (Ala.) 3b, (Miss.) 668a; where unrestrained by 
charter or insolvent laws (Ark.) 50e, and acceptance of deposit by insolvent bank does 
not affect right (Md.) o05b. —lies in one of two banking partners, the other having 
absconded (Wis.) 1420a, or in stockholders (Mich.) 597a. — does not lie in vice-presi- 
dent virtute officii (Utah.) 1344b. 
Prefej'ence good if debtor acts in good faith (111.) 245d. — by state bank, good if valid in 
State where bank incorporated (La.) 399d. — to creditors advancing funds void (Miss.) 
677b. —q/" State is cut off by assignment (Minn.) 655c, (Wyo.) 1430a; contra, as to 
state depositary (Ga.) 162b. — to sureties by subrogation to bank's prior lien (Pa.) 
1194d. 
Setoff allowed, in receiver's suit, of bills of insolvent bank against debts due it (Ga. ) 
140a, (Mass.) 544a. — of deposits against debts due insolvent banker (111.) 187a, 
(Md.) 515b, (N. Y.) 924b. —in equity on claims due, when action brought (N. Y.) 
996c. — to bank, of amount of note paid by it out of maker's deposit, against cred- 
itors (N. Y.) 907c. —to bank, of unmatured note (Mass.) 538b. —to acceptor, in ac- 
tion by receiver, of bills of bank acquired before trial (Ga.) 150a. — of State's equitable 
interest in deposit in agent's name (Mass.) 536b; but not to receivers of two in- 
solvent and mutually indebted banks, against each other (Tenn.) 1314d, or to stock- 
holder and director, of discounted claims (Ga.) 160a. Right of setoff is not de- 
feated by assignment (Mass.) 538b. 
Statute prohibiting bank from assigning evidences of debt is available to attaching cred- 
itor against intervening assignee (La.) 403c. 
Stockholder cannot object to assignment made in good faith by directors (Mo.) 732c. 
Title passes to assignee (Wyo.) 1430a, in case of assignment before presentation of check 
(111.) 219b. —o/" assignee is good as against bank (N. Y.) 939d. —to note remains in 



loo BANKS AND BANKING 



INSOLVENCY— Continued 

Assignment for Benefit of Creditors (continued) 

bank in trust for assignees (Ky.) 351c. — to note which bank was not authorized to 
discount, does not pass to assignee (Ala.) 7c. — to trust funds does not pass to as- 
signee as assets (Mich.) 610a, (S.D.) 1276c. —to laud, derived from assignee, is good 
(Ga.) 157d. 

Trustee cannot ratify transfer of credit by insolvent bank from one creditor to another 
(Md.) 513a. — may be authorized to pay debts and borrow money to complete rail- 
road (Miss.) 668a. — under contract entitled to damages caused by assignment, with 
prior expenses (N. H.) 820b. —represents bank (Tenn.) 1313b. 

Validity. Assignment is not fraudulent (Md.) 505b. —not invaHd (Mich.) 603b. — «o^ 
rendered invalid by failure to definitely enumerate assets (Colo.) lOld, or preserva- 
tion of contingent surplus (Ga.) 142b, or a stipulation requiring submission of accounts 
(Miss.) 668a. —governed by law of State granting charter (La.) 399d. Instrument 
creating mere agency for continuation of business is not a valid assignment (La.) 396b. 

Attachment — see Attachment 

Bank Bills— see Bank Bills 

Bankruptcy Act (see Statutes) 

Proof of claim is election of forum and waiver of right of setoff (Ky.) 356d. 

Only rights of bankrupt at time of petition pass to assignee in bankruptcy (Mass.) 

564d. 
Act does not enlarge doctrine of setoff (N. Y.) 999b. 
U. S. R. S., sec. 5242, authorizes presumption of insolvency, where national bank fails to do 

business several weeks (N. Y.) 1006a. 

Collection (see Collections, Insolvency) 

Right of collecting bank to proceeds of collection terminates on insolvency (Mass.) 582a, 
and proceeds thereafter received are trust funds (Ohio) 1160d. 

Commissioner 

mjiy be sued without making stockholder or insolvent a party (Ky.) 347c. 
suing on bill of exchange, drawer may set off deposit (Ky.) 353d. 1 

not within bank rule that depositor must give notice of withdrawal (D. C.) 130a. 
After appointment, bank exists only for liquidation of existing debts (Ky.)354c. 
Bank stock held by commissioner may be attached without making stockholders defend- 
ants (Ky.) 347c. 

Creditor (see Stockholder's Liability) 

Certificate ai indebtedness issued by receiver gives creditor no new right (Ohio) 1161b. 

Claim must be due at time of failure (Pa.) 1239a. —allowed by receiver is presumed 
valid (Mass.) 532d. — of holder of banker's indorsed paper may be proved (111.) 
220d. — m,ay be proved, though secured by collateral (Neb.) 786c. — against one 
who was debtor and also depositor to larger amount, is not recoverable (Tenn.) 1299c. 
—for rent not allowed for term after surrender of premises by receiver (N. J.) 831c. 
Evidence of purchase of claim at discount admissible (Ga.) 160a. Proof of claim in 
bankruptcy no bar to action for fraud (N. Y.) 1100c. Disallowance of claim by mas- 
ter must be duly excepted to (N. Y.) 877b. 

Collateral must be surrendered before claim can be allowed (Neb.) 786c, and deducted 
from claim of holder of certificate of deposit (N. H.) 820c. Mortgage given creditor of 
fraudulent vendor securing his guaranty of debt is valid with no further consideration 
(Neb.) 804a, 804d. 

Contract by insolvent bank to purchase its shares, void as against creditors (N. Y.) 
891b. — iy cashier to apply wife's deposit to husband's overdrafts, void (N. Y.) 1015a. 

Dividends may be made to creditor, collateral being exhausted, on unpaid balance (Kan.) 
334d. — as deposit not due creditor from receiver (Mich.) 628c. —accepted in igno- 
rance of legal rights, are not lost (Wis.) 1411d. Acceptance from assignee is not 
waiver or loss of equitable lien (Wis.) 1412b. Claim therefor belongs to creditor, not 
receiver (N. Y.) 928d. 

Estoppel. One submitting claim to commissioner without objection cannot deny authority 
after decision (N. H.) 816e. Creditors not estopped to deny existence of branch bank, 
though parent bank is (N. C.) 1124d. Creditor proving claim and receiving dividends, 
thereafter cannot charge another as real debtor (N. Y.) 970a. Creditor cannot raise 
question of ultra vires in proceeding to enjoin execution (Miss.) 668a. After present- 
ing general claim under the Act, creditor is not estopped from asserting a preference 
(Tex.) 1333a. 

Guaranty. Creditor holding guaranty may prove full amount irrespective of collateral 
(N. H.) 820c. 

Includes collecting bank crediting amount to depositor, before insolvency (111.) 244c. 
—holder of bank's note (N. Y.) 872b. —depositor in savings bank (N. Y.) 1007b. Maker 
of check given to secure member of banking firm on bond is only general creditor 
(111.) 222b. 



INDEX 101 



INSOLVENCY— Continued 
Creditor (continued) 

Meeting-. Creditor may attend creditors' meeting without forfeiting his rights against 

bank (La.) 456d. 
Pledge made in good faith cannot be set aside by creditors (La.) 455b. 
Remedies of creditor against stockholder are direct under G. S. (Kan.) par. 1192, (Mass.) 
592b. After appointment of receiver, creditor should apply for leave to intervene before 
filing petition as claimant (Mich.) 621e. Bill to terminate affairs proper remedy 
(N. Y.) 879c. Creditors may proceed in equity to ascertain amounts due, before 
resort to stockholders (Ga.) 161d, or may compel assignee to enforce notes held by 
bank (Ind.) 250b, or may demand more detailed schedule of property (Miss.) 668a. 
Determination of creditor's rights may be made in suit by receiver (N. Y.) 878c, (N. C.) 
1119c. Equity will restore to original rights creditors relinquishing securities to accept 
bank's void deed of trust (N. Y.) 878c. Non-resident debtor of insolvent bank may be 
I proceeded against by bill in chancery by publication (Tenn.) 1293b. All creditors 

must join in suit to wind up bank and charge directors under R. S. (Wis.), sec. 1765, 
(Wis.) 1410b. 

Definition 

Bank is solvent if able to provide for debts as they fall due (Kan.) 326a. 

Bank restrained from doing business is not insolvent within U. S. priority statutes (Mass.) 
536b. 

Consent of shareholders to scale down book value of stock does not render bank in- 
solvent (N. Y.) 1093b. 

Insolvency proceedings are equitable in their nature (Wis. ) 1428b. — without misrepresen- 
tation is not fraud (N. J.) 833b. — is inability to meet liabilities in usual course of 
business (Minn.) 663d, (N. J.) 824b; contra (Neb.) 771c. —is inadequacy of assets to 
pay debt (La.) 397a, (N. Y.) 1066b, within reasonable time (la.) 294c. 

Payments, made to hinder or prefer creditor, not acts of insolvency (N. Y.) 1044c. 

Suspension of bank is an act of insolvency within U. S. R. S., sec. 5242, (Tex.) 1333b, and 
refusal of specie payment is failure within charter (Ga. ) 141d. 

Demand 

may be made on person in charge of insolvent bank (Ark.) 58c. 
not necessary for balance due after notice of suspension (Md.) 498b. 

Discharge 

if absolute is not a rescission of debt (La.) 401b. 
in one state binds parties in another (Me.) 488d. 

Dividends 

allowable on notes taken in payment of other notes (N. Y.) 1070d. 

based on sum actually unpaid (Minn.) 657b, (Pa.) 1234c. 

on notes maturing after appointment of receiver (Pa.) 1239a. 

prevented from operating as release of unpaid balance by constitutional provision (Wyo.) 
1430a. 

Trustees taking assets from receiver to pay agreed dividend may charge interest on ad- 
vances (N. Y.) 1081c. 

Effect 

Abatement of proceedings on note effected by insolvency resulting in dissolution (Miss.) 
679c. —effected by judgment of dissolution (N. Y.) 1069b. 

Contracts ended by insolvency (111.) 235c, (N. H.) 820b, except as to action for breach 
(111.) 235c, or between bank and trustees (N. H.) 820b. 

In general. All liabilities mature, without demand or notice, on insolvency (N. C.) 1119c. 
Comptroller in possession does not change relation of parties to check (111.) 235b. 
Consequences of prior insolvency not waived by present solvency (Mich.) 604d. Knowl- 
edge by bank's officers of insolvency does not impose trust on funds received there- 
after (Tenn.) 1305c. Status of parties fixed (Pa.) 1198a. Surety on bank's bond as 
state depositary not released (Ga.) 163b. Transactions immediately preceding assign- 
ment not necessarily void (Tenn.) 1305c. 

Evidence 

of appointment of tem.p07'ary receiver raises no inference of insolvency (N. Y.) 1068c. 

of assets against liabilities admissible as proving insolvency (Wis.) i423a. 

of bank'' s advertisement for depreciated bills does not show insolvency (Ga.) 140c. 

of bank's condition cannot be shown by assignee's schedule (Minn.) 646a; contra (N. Y.) 

1022b. 
of deed of assigninent admissible to show condition (la.) 294c. 
of failure raises presumption that cashier knew of insolvency (Mo.) 749b. 
of filing bill to have bank's solvency determined will warrant assumption of insolvency 

(Tenn.) 1294b. 
of general reputation admissible (Minn.) 642c, 646a. 
must show insolvency to rebut presumption of solvency (N. Y.) 1099a. 
of opinion as to solvency not admissible whether based on hearsay (Kan.) 326a, or 
examination of its affairs (Minn.) 646a. 



102 BANKS AND BANKING 



IKSOLVENCV— Continued 

Evidence (continued) 

of ordinary business act raises no presumption that it was done in contemplation of 

insolvency (N. Y.) 967b. 
raising presumption of insolTency, failure of bank to pay in specie on presentment (S. C.) 

1267c, (Wis.) 1398a. 
of suspension of business admissible as showing insolvency (111.) 240c, (Mich.) 618c; 

contra (N. Y.) 908c. 
of time of stopping payment not admissible in absence of proof of insolvency (N. Y.) 854a. 
of trustee's declarations as to past transactions admissible in action on cashier's bond 

(Me.) 469b. 
Insolvency will not be presumed (Ohio) 1163d. 

Fees 

of counsel must be paid by petitioning stockholders, pro rata, out of aggregate recovery 
(Tenu.) 1302a. 

Fraud— see Criminal Law 

Fraudulent Transfer 

includes transfer of bank stock by stockholder without consideration on day before bank's 

failure (N. Y.) 923a. 
is conveyance by insolvent bank to director in return for stock (Mo.) 733b. 
does not include lien of deposits for future acceptance given when insolvent (N. Y.) 996c. 
of land to director precludes deed thereafter to assignee of bank (Mo.) 733b. 
made with transferee's knowledge of insolvency, is void (Ga.) 167b. 

Injunction 

against bank's transacting business can be granted under Bank Commissioners' Act (Cal.) 

78d. 
allowed only where immediate impending insolvency and danger to rights of creditors is 

shown (Mich.) 597b. 
not granted because bank has stopped payment (Mich.) 598a. 
not dissolved where answer admits equity of bill but sets up new matter (Mich.) 599a. 

Interest 

allowed from suspension of bank (Cal.) 82b. —in equity only at legal rate and from 

time of demand (Mass.) 531a. 
on deposit, setoff against note, runs from service of answer (N. Y.) 1068c. 
runs from date of suit on claim for deposit (Mass.) 532d. 

Inventory 

"Nothing over incumbrances" does not show pledge or lien (N. J.) 836c. 

Judgment 

of insolvency final, injunction remaining in force (Cal.) 98a. 

of liquidation, no action thereafter against bank, unless claim disallowed (Cal.) 98b. 

Liquidation _^ 

does not, per se, prove insolvency (La.) 397a. 

of national bank terminates its agency for U. S. (Ga.) 161a. 

proceedings and time of payment thereunder may be regulated by state (La.) 419d. 

— cannot stay judicial proceedings upon claim antedating appointment of trustees 

(La.) 402b. 
when voluntary, does not prevent creditors from bringing actions (Cal.) 91d. 
After judgment rendered, court should prevent diversion of assets by stay of execution 

(Me.) 465d. 
Commissioners may sue directors for maladministration (La.) 404b. 

Courts may try all proceedings relating to liabilities of bank in liquidation (La.) 400b. 
Pending proceedings powers of bank suspended (Cal.) 98c. 

liquidators 

of foreign bank are not vested with property situated in New York (N. Y. ) 990b. 
not liable on note merely because entered in bills receivable book (N. Y.) 1033a. 

Loan 

to bank not completed, money deposited may be returned (N. J.) 826a. 
rescinded, and return of security tendered, transferee not liable (Minn.) 662a. 

Notice 

is chargeable to bank's officers (Md.) 515c. 

of insolvency, if actual, is as effective as after judicial determination (La.) 447c. — musi 
be actual to one loaning money to bank on collateral (N. J.) 826a. — a question of 
good faith (Tenn.) 1314a. —gives immediate right of action on receipt thereof 
(Md.) 498b. 



INDEX 103 



INSOLVENCY— Continued 
Partnership 

Fraudulent co-partners in insolvent bank are severally liable for entire indebtedness (Mich. ) 
598b. 

Payment 

by insolvent estate gives it creditor's rights, by subrogation, against prior parties on 

note (Minn.) 657b. 
by party, of bills of insolvent bank as money, he must bear loss (Vt.) 1348b. 
of debt to bank, in its own bills to receiver, allowed (Vt.) 1348d. 
of bill of exchange in hands of director, may not be by bills of insolvent bank (Vt.) 

1352b. 

Preference (see Trusts) 

allowed to beneficial owner depending on ability to trace property (Neb.) 780c, (N. H.) 
820c, (Wis.) 1428b. —correspondent bank on collateral deposited to secure overdrafts 
(S. C.) 1267a. —county, (Neb.) 798d; contra (Ga.) 173d, (Wis.) 1419b. -execution 
creditor (Ga.) 146b. — holder of bank bills, against all other creditors (Ga.) 154b. 
— deposits unless unauthorized (N. Y.) 985e,1084d. — state where bank is state deposi- 
tary (Minn.) 648c. — state where statutory, even though it is a stockholder (Ga.) 
146b. — converted funds (Mo.) 751c. — creditors over stockholders (N. Y.) 936a, b, 
(S. C.) 1264d. — those dealing with bank as bank, over creditor's dealing with it in 
known unauthorized capacity (Neb.) 804b. — bank receiving check in payment of over- 
draft (Va.) 1369a. — county, and it is not estopped from asserting same by accepting 
dividends (Neb.) 798d. —billholders by first clause of Act of 1860 (Tenn.) 1291c. — 
creditors according to priorities by Act of 1866, which, however, created no new priority 
in favor of billholders (Va.) 1372d. 

not \illomed to bondholders (S. C.) 1264d. —employee for wages (N. H.) 820c, (N. Y.) 
857d, 859c. —forwarding bank, where proceeds were collected and mingled with general 
funds before insolvency (N. C.) 1120b, c, d. — holder of certificate, indorsed for pay- 
ment but ordered not to be paid (N. Y.) 1079 b. — holder of check where drawee insol- 
vent before presentation (Minn.) 645c, (N. J.) 831c, (N.'Y.) 884a, (Okla.) 1165a. 
—holder of draft (Ohio) 1160a, (Tenn.) 1313c, or note (Ind.) 279c, (Va.) 1372d. 
— national bank (Minn.) 641d. — officers of bank (Neb.) 787d. — receiver for unpaid 
stock subscriptions against insolvent stockholder's estate (Wis.) 1431c — savings 
bank, for call loan under Act of 1875 (N. Y. ) 977d. — state as against assignee 
(Minn.) 655c. — state merely by virtue of constitutional provision that obligation to 
state cannot be released except by actual payment (Wyo. ) 1430a. — stockholder where 
certificates of deposit are taken in exchange for insolvent bank's stock (Pa.) 1229c. 
— a«y class of creditors (Vt.) 1359a. — trustee via&sx coutrazt (N. H. ) 820b. — receivei 
or creditors of insolvent corporation from estate of insolvent stockholder, as against 
general creditors (Wyo.) 1431c. — creditor who became such by fraud of bank (N.Y.) 
1029c. — simple contract creditor (Ala.) 35d. — state (Ga.) 170a. — surety on bond 
(la.) 294d. — holder oi Qhscks (N. Y.) 884a. — one creditor as against the others 
because he has secured a judgment (Tenn.) 1292b. 

defeated as to state, by assignment for benefit of creditors (Wyo.) 1430a. 

Action to recover money paid as a preference is triable by jury (Minn.) 641d. — by bill 
by preferred creditor to restrain attachments at law makes attaching creditors and 
assignee necessary parties (Miss.) 688b. — to establish preference, county court may 
allow any relief necessary (Neb.) 780c. — against acceptors, and repudiation of settle- 
ment of bill of exchange by discounting bank, repugnant to cross bill for preference 
(Ala.) 32a. 

Collections of funds as agent give preference thereto (la.) 305a, (Neb.) 806a, (N. Y.) 
1036a. — not increasing bank's assets not entitled to preference (Mo.) 759c. — of 
mutual collecting agents not entitled to preference while accounts are running (N. Y.) 
1009a. — must be traced into hands of receiver to gain preference (Wis.) 1418a. 

Construction. Allowance of vaHd setoff is not creating preference under sec. 5242, U. S 
R. S. (Ohio) 1160c. 

Contract debt due state bank is not entitled to preference under P. L. 494 (S. C.) 1258d. 

Court funds in general designated depositary, not preferred (111.) 202b. 

Deposits. Can be followed where deposit kept separately (111.) 234b. — where money re- 
ceived by bank to pay note (Kan.) 316b. — where cash actually passed to receiver 
(N. J.) 846b. — when traceable, if public fiinds (Tenn.) 1300a. — when identified, 
if ofBcers knew of insolvency (Tenn.) 1318b. 
Cannot be followed if general deposit (Ind.) 268b, (La.) 449b, (Neb.) 802b, (Tenn.) 
1316c, (Tex.) 1322d. —if special deposit (N. J.) 831c, 832b. —where made in 
agent's name, with principal's knowledge (Neb.) 797d. — unless tra.cea.ble (111.) 239a, 
or traced, if made, on president's statement of solvency (N. Y.) 1037d. — unless 
there is fraud (N. J.) 834a. 

Fraudulent, where accounts transferred, without consideration and with notice (Ga.) 
167b. — where conveyance is without consideration (Me.) 474d. — Zf/jfr;? made in con- 
templation of insolvency (Md.) 515c. — where received on eve of insolvency and creditor 
cannot file claim (Minn.) 661b. — not created by bonds issued to meet outstanding 
certificates of deposit (N. Y.) 914c. Absolute transfer of stock as security is not con- 
clusive evidence of fraud (Mass.) 520d. 



104 BANKS AND BANKING 



INSOLVENCY— Continued 
Preference (continued) 

Lien of state has priority (Ga.) 170a, 

National Bank Act. See National Bank Act. 

Petition may be amended to show depositor's offer to rescind contract of deposit and 
return certificate (Wis.) 1428b. 

Priority of United States against insolvent "persons" does not extend to bankers as 
U. S. agents (Mass.) 536b. 

Trust funds are preferred (Neb.) 788c, 796b, 797a, 806a, (Tex.) 1326a, (Wis.) 1412c, 
only when traceable (Ind.) 275c, (Ohio) 1147b, 1169d, (Pa.) 1235b, 1240a, (S. C.) 
1273b, (Wis.) 1416a, 1417c, if they have increased assets and withdrawal does not 
injure creditors (la.) 305c, and whether or not preserved in same form (id.) . — lose right 
of preference by failure to show funds applicable to payment (id.). — recoverable, if 
dividends are returned (N. Y.) 1036a. See also Trusts. 

Valid, where made of cash deposit in hands of receiver (N. J.) 846b. — under clearance 
agreement made when bank was solvent (N. Y.) 1061b. — o/ debt of bank in course 
of business (N. J.) 831c. — by giving mortgage (Conn.) 110b. — by legislature for 
savings bank depositors (N. Y.) 978c. — 6i' insolvent bank (Conn.) 111c. — (?/■ money 
collected and in receiver's hands (N. Y.) 1064c, paid for check of bank (N. J.) 831c. 
— fo noteholders over holders of certificates of deposit (Pa.) 1192c. — of paper de- 
posited for collection (N. J.) 846b. — fry president indebted to bank, by conveyance in 
trust for depositor and creditors (la.) 308d. — o/'tax on insolvent bank (Wis.) 1422c. 
—<?/" wages due by savings bank (N. Y.) 1001c. — by Real Estate Bank (Ark.) 42c. 
—to State by act of legislature liquidating state bank (Ark.) 49e. 

Void where made in contemplation of insolvency (Md.) 515c, or by bank (Minn.) 
646b, if with notice (Minn.) 650b. — where one depositor's account applied to an- 
other depositor's overdrafts (N. Y.) 989c. —under sec. 187, ch. 409, L. of 1882 
(N.Y.) 1029c. — though authorized by charter, where contrary to statute (Vt.) 1365d. 
— when given by assignment of insolvent (Wis.) 1415b. — where assets of bank are 
turned over to depositor as collateral (Minn.) 646b. 

Receipt of Deposit 

by insolvent bank works a fraud (111.) 235d, (Md.) 505b, (N. Y.) 1016c, 1036a, and 
discharge in bankruptcy is no defense (N. Y.) 1100c. — does not change relation of 
debtor and creditor (Md.) 505b. —gives depositor the right to rescind contract on 
discovery of insolvency (Wis.) 1428b. 

by insolvent banker, who places it in packet addressed to depositor, makes him mere 
bailee (N. Y.) 948a. 

by defendant, places burden of proving solvency on him (111.) 209c. 

by banker, makes his good faith a question for the jury (N. Y.) 1022b. 

by those assumiiig to do banking, is reached by law against such receipt by insolvent 

(111.) 209c. 
fraudulently induced does not show misconduct causing insolvency (N. J.) 835a. 

Receiver — see Receiver 

Remedy 

of state against insolvent bank not impaired by subsequent action by bank or creditor 
(Minn.) 643a. 

Setoff 

of bank bills, not allowed in suit by maker of note against insolvent payee (Conn.) 111c. 

— oti note by receiver (Conn.) 115b. — by dissolved bank against debts (N. H.) 

813a, (N. Y.) 923c, (Va.) 1373a, b, 1375a. 
of check of depositor, by debtor ndt allowed, unless presented before assignment (lU.) 

232b. — where purchased after bank became insolvent (N. Y.) 1058d. 
of claim, allowed if mature at commencement of suit (Mo.) 752a, although assignee ap- 
pointed before maturity (Ohio) 1160c. — against receiver if made by State for taxes 

(Mass.) 536b. 
not allowed for deposit bought at discount after insolvency (La.) 447c. — ?/" purchased 

after injunction (R. I.) 1251b. 
of certiUcate of deposit, allowed, if acquired before insolvency (Tenn.) 1294b, 1298a, 

1302b, but burden is on holder to show acquisition before insolvency (Tenn.) 1294b. 

— in foreclosure proceeding by mortgagor bank (Neb.) 788b. — to maker of note, only 

for pro rata value after decree fixing dividend on certificates (Va.) 1376a. 
of collection, not allowed, by agent bank against debt due by collecting bank (N. C.) 

1119b. 
of debt, allowed, where due customer or indorser, as against debt due insolvent bank 

(N. C.) 1119c. — by acceptor, against claim on acceptance by receiver, where debt due 

principal (Ohio) 1160c. — at once though credit given (Wis.) 1415a. 
not allowed, where due stockholder, as against his statutory liability (N. Y.) 1087a. 

— against assignee, by insolvent's creditors unless due at time of assignment or of 

bringing suit (Mo.) 754a. 
of deposit, allowed, by bank against claim of insolvent (Ga.) 170a, (Minn.) 654b. — by 

drawer of bill of exchange against commissioners of insolvent bank (Ky.) 353d. — by 



INDEX 105 

INSOLVENCY— Continued 
Setoff (continued) ' 

guarantor of note against note (Mo.) 723a. —against note held by receiver (Ky.) 
371c. — where deposit is made bona fide, after insolvency but before legal proceedings 
(Mass.) 586b. — against debt not yet due, where depositor is insolvent (Minn.) 654b. 
— under sec. 5242, U. S. E. S., against county warrant held by receiver (Mont.) 768c. 
— where deposit assigned before insolvency known (N. Y.) 1058a. — against \xnva.a.tatcA. 
notes held by bank (Pa.) 1246e. — against individual debt, where deposit made by 
firm and assigned to partner (Pa.) 1246e. 

not allowed, where made by assignee of insolvent debtor, owing bank (Miss.) 688b. — by 
borrower from savings bank (N. J.) 831c. —by depositor against debt (N. J.) 833b. 
— o/"part of loan against mortgage (N. J.) 833b. — by surety on note held by insol- 
vent bank (Ky.) 371d. — to discharge judgment, where made by judgment debtor in 
judgment creditor bank (Va.) 1378d. 

of dividend in insolvency by director allowed in suit by receiver (W. Va.) 1395c. 

of judgment on notes, assigned to stockholders allowed pro tanto (Tenn.) 1303c. 

of payments made by mortgagor, allowed in foreclosure proceedings by bank's assignee 
(Neb.) 788b. 

of share in assets, not allowed, by stockholder in action for stock subscriptions (N. C.) 
1125b. 

Statute of Limitations 

runs firom time of knowledge of bank's suspension (Md.) 497c. 

Bank's judgment creditors, proceeding in equity against its debtors, are not barred if 
bank's claim against debtors not barred (Ga.) 159b. 

Stockholder's Liability— see Stockholder's Liability 

Trust Deed 

to secure bona fide indebtedness not fraudulent as to creditors (N. Y.) 897d. 
made under temporary receiver to creditors advancing money, will, on appointment of 
permanent receiver, be set aside at instance of creditors (Ga.) 175c. 

Trustees 

Cannot foreclose mortgage to secure payment of stock of state bank (Ark.) 45e. — receive 
compensation for negligent management (Tenn.) 1302a. 

Liable for negligent loss of securities (Tenn. ) 1302a. 

Powers. Are trustees for benefit of all creditors (Va.) 1373a, b. Where bringing bill to 
compel proof of claim need not make State a party, though a preferred creditor (Tenn.) 
1300a. May recover from one with notice who pays draft on which debtor is payee 
(Md.) 497a. Not limited to collection of funds sufficient to pay debts (La.) 423d. 
Must bring action on note to him in his own name (Tenn.) 1304b. Are purchasers for 
value of promissory note held by bank (Va.) 1373a, b. 

Trust Fund- see Trusts 

Voltintary Proceedings 

may be concurrent with involuntary (N. Y.) 1065c, 1069b. 

Waiver 

implied by proving claim and receiving dividends, as against specific trust funds (Mo.) 

731a, 
of irregularity in notice is made by party entering claim under such notice (Miss.) 684c. 
of efiect of failure of bank to redeem obUgations made by Act extending time to redeem 

(Ga.) 138b. 

IITISURAWCE 

Life Policy 

is assignable but not negotiable (Ga.) 176d. —for advance of premiums and expenses, 

only for amount thus paid, though notes were given for larger amount (id.). 
assigned as collateral for note undelivered in lifetime of maker, void (Me.) 486c. 

Powers 

Insurance company may loan surplus and take note therefor (N. Y.) 857b. 

Proof of Loss 

Allegation that plaintiff furnished proof of loss not sustained by proof that defendant had 
waived it (Ga.) 172c. 

IHTTEREST 

Allowance 

is proper a.^sivas\, debtor after maturity (La.) 419b. —o^azw^ i^afe only by express agree- 
ment (Ark.) 52c. —on money wrongfully vnthheld (la.) 301c. —in advance (Me.) 468c. 
— on dividends (Mich.) 626b. — on disputed security though payment was tendered 

(Miss.) 687d. —on trust funds (Neb.) 792c, 792d, 792e, 793a, 797a. —on deposits, if 
agreed by depository (N. Y.) 1040a. — on bonds notwithstanding notice to present 

(N. Y.) 1071c, —on note payable at certain place if maker did not have fund at that 
place to pay it without demand (M©.) 756a. 



106 BANKS AND BANKING 



INTEREST— Continued 
Allowance (continued) 

is not proper against state (Cal.) 97b. — against stockholders and directors in favor of 
billholders (111.) 203b, (Mass.) 534d; contra (Mass.) 535a, (N. Y.) 1079d. —against 
banker for oral promise to pay heir of depositor (Ind.) 275e. — against bank as stake- 
holder (Mass.) 579a. —against receiver (Mont.) 769d. —against bank on certificates, 
the title being disputed (Wyo.) 1431b. —unless date of account is ascertained (Cal.) 
66b. —if ■wrongfully charged {C^.) l^\i, (111.) 241c, (Mass.) 588a, (N. Y.) 1038a. 
— on drafts usuriously discounted, which would have accrued by delaying collection 
of paper (la.) 292c. — where payment of reduced bank stock is prevented by attach- 
ment (Me.) 488e. 

Computation 

by solar year, and month by 30 days is proper (Fla.) 133d. 

Fractions of days not regarded (Mass.) 524a. 

Proper to assume bank method of computing interest (Pa.) 1238d. 

Compound 

Recapitalization cannot be often required in order to compound interest (La.) 395c. 

Definition 

Amount reserved on discount of note (N. Y.) 1038a. 

Demand 

Interest is due only from time of demand (Ark.) 50e, (Cal.) 78b, 83c, (Colo.) 106c, 
(Ga.) 143a, (Ky.) 368d, (La.) 390c, 399b, 401c, 414b, (Mass.) 531a, 536a, 548b, 
(Mich.) 621b, (Mo.) 735c, (Neb.) 781a, (N. H.) 813c. 

Without demand interest runs from commencement of suit (Mass.) 532d, (Mich.) 621b, 
(Neb.) 781a, (N. Y.) 1066e. 

Protest proves demand, but is unnecessary to secure interest (La.) 390a. 

Evidence 

Court takes judicial notice of legal interest (Ark.) 41d. 

Parol evidence is inadmissible to change or vary interest (111.) 223d, (N. Y.) 1027c. 

Rate may be proved by account with bank (Miss.) 665b. 

Custom of other banks is not admissible (N. Y.) 1049b. 

Failure to pay- 
does not work forfeiture of charter if remedy of quo warranto is provided (Ark.) 44d. 

Forfeited 

by insufficient proof of ownership of torn note (Va.) 1368b. 

Mistake 

may be corrected at any stage of proceedings (Mich.) 627e. 
in advance may be taken (N. Y.) 905c. 
is not usury (Mo.) 498a. 

Nature 

incidental to debt (Colo.) 106a, (N. Y.) 978c, 1023b. 

Overdue paper 

governed by general interest laws (Ala.) 22d. 

Indorsement on overdue paper is not written agreement to pay rate (Mass.) 573c. 

Payment 

is not chargeable to principal (Colo.) 104b; unless unlawful (Neb.) 777b. 
may be transferred to bank on discount of paper of third party (N. J.) 842b. 

Promissory Notes — see Promissory Notes 

Bate 

fixed by charter governs (Ark.) 42d, (La.) 382a, 378d. 

need not be in writing (S. D.) 1280a. 

determined by place of payment (Wis.) 1405a. 

seven per cent by state bank (Ark.) 43d. 

seven per cent by national banks, or statutory rate, if any (Colo.) 81c, 104b. 

any rate agreed upon is lawful (Cal.) 68d, 69a. 

restriction in bond as to rate after maturity is valid (La.) 421c. 

where unspecified, the rate of discount (La.) 407a. 

Recovery 

may be had in action for principal (Cal.) 78b, (Pa.) 1203a. 
from state only on express agreement (Ark.) 52c. 
none, for delay caused by defending suit in good faith (HI.) 203f. 
being barred the right to set it off is barred (Ohio) 1153b. 

Beduction 

not accomplished by statute passed subsequeat to making of notes (Ind.) 250b. 



INDEX 107 



INTEREST— Continued 
Time Runs 

from suspension of bank (Cal.) 82b. 

during time of wrongful refusal to transfer stock on books (Del.) 127b. 

from payment of check, on demand note given as security therefor (Fla.) 136c. 

from wrongful appropriation, in claim on surety bond (Ga.) 140a; and from time of 

each misdeed (Md.) 512b. 
from demand on certificate of deposit unproduced (Mass.) 584b. 
from date on certificate (Mo.) 699e, (N. M.) 849a. 
to date of assignee's appointment (N. H.) 820c. 

to declaration of dividend, if payment became an advance dividend (N. Y.) 910b. 
Time of payment extended by paying interest in advance to certain day (N. Y.) 933d. 

Usury 

Taking too much interest is not necessarily usury (Miss.) 664c. 
See also Usury. 

JUDGE 

(See Public Officers) 

JUDGMENT 

Amendmeiits 

may be made (Ala.) 12d. 

Amount 

is for sum due (S. D.) 1279d, (Wis.) 1406d. ' 

Assignments 

are valid (N. Y.) 893b. 

Enforcement 

may be against part only, where statute requires joinder of all parties (Ala.) 24b. 

Evidence 

of value of homesteads, which are exempt is inadmissible (la.) 294c. 

of existence of judgment may be shown by recitals in sheriff's deed (Mo.) 704d. 

of title to note by allowing claim against estate binds estate only (Neb.) 796d. 

Execution 

may be levied on national bank stock (Ala.) 39c. —stock without taking possession, if 
notice is given (La.) 417d. —bank's realty not vested in receiver (Mich.) 605d. —bank's 
property in president's hands (Wis.) 1403d. 

cannot be levied on bank's realty to protect sureties (la.) 294d. —separately on rights of 
ownership and possession of realty, where vested in one person (La.) 439a. — on de- 
posit (Kan.) 312a, without leaving a certified copy (N. Y.) 1086a. —on homestead 
built from overdraft (Ark.) 57d. 

sale of stock renders conveyance necessary (Conn.) 113b. —subjects purchaser to prior 
lien of bank for owner's debt (Ark.) 55a. 

can be satisfied only from corporate funds (Me.) 458b. 

is not satisfied by a forged note (Ky.) 354e. 

should be stayed to prevent diversion of assets (Me.) 465d. —until production of cer- 
tificate of deposit or indemnity (Mass.) 584b. 

may issue without scire facias, on sheriff's return nulla bona (Mo.) 695d, which return 
cannot be contested (Kan.) 337c. 

is valid against unrecorded stockholder's inchoate rights (Ind.) 247c. 

Foreign judgment 

to enforce stockholder's liability may be basis of suit against a stockholder (Mo.) 756d. 
is not binding if obtained without jurisdiction (Ala.) 3a. 

Jurisdiction 

of court in determining contingent liability is exclusive as to determination of amount 

due and the issue of execution (Wis.) 1406d. 
of the facts must be shown by the judgment (Ala.) 7d. 

Lien 

extends only to debtor rights at the time it attached (Ind.) 264d. 
attaching before notice of unrecorded deed protects purchaser (Ala.) 26b. 

On Demurrer 

applies only to pleadings demurred to (Miss.) 677c. 

Priority 

does not exist over trust deed of even date (Ala.) 3b. 

of judgment against bank gives priority of lien on proceeds of execution satisfied by 
stockholders (Ga.) 156c. * 



lOS BANKS AND BANKING 



JUDGMENT— Continued 
Purchase 

may be made by bank for security (111.) 182e. 

Satisfaction 

may be made in notes of bank (111.) 182b, if the creditor expressly agrees (Miss.) 669d. 

is for benefit of all interested (Pa.) 1229b. 

to be made from notes deposited, necessitates bank taking steps to fix liability (La.) 

424a. 
Authority to give, presumed from president's authority to receive payment (N. Y.) 958e. 

Vacation 

not allowed, if judgment was entered in bank's name after receiver's possession (111.) 223a. 

Void 

if against a dissolved national bank (Kan.) 327e. 

if by default and nil dicit without disposing of plea of payment (Ark.) 43d. 
is not, if judgment is entered in name of State Bank, when suit was brought by Bank of 
State (Ark.) 43a. 

JURISDlCTIOJf 

Circiiit Courts 

may appoint receivers on stockholder's petition (la.) 299b. 

Concurrent 

given court of common pleas and supreme court to enforce dissolution of corporation 

(N. Y.) 1100a. —state courts by Congress (Ohio) 1155a. 
does not exist where exclusive statutory remedy is confined to one state (N. Y.) 954c. 
exists between state and United States courts before appointment of receiver (Ga.) 161a. 

District Courts 

may issue and amend writ in action against stockholders (Kan.) 331b. 
may entertain applications to share in insolvent's assets (Kan.) 339b. 

Equitable 

extends to mistakes of law and fact only where parties may be restored to former position 
(Pa.) 1239d. 

extends to actions for appointment of receiver, without notice, if bank ofiicer cannot be 
found (N. Y.) 921a. —^J' insolvency (Wis.) 1428b. —;/or enforcing stockholder's liabil- 
ity (Me.) 491b, (Neb.) 798b, (S. C.) 1272b, (Wyo.) 1431d. —for allowance of claims 
against state (Ark.) 49e, (Va.) 1371b. —for accounting (N. C.) 1120e. —where 
transactions are intricate (Del.) 126d. — to recover proceeds of mortgage fraudulently 
made (la.) 309a. — by trustees after charter is annulled (Ark.) 49a. 

allows setoff of certificate of deposit against claims due insolvent bank (Wis.) 1419d. 

continues suit after office of bank commissioner is abolished (N. Y.) 877b. 

Ouster 

Court first appointing receiver acquires exclusive jurisdiction (N. C.) 1124a. 

Giving jurisdiction to one court does not oust another already having it (Vt.) 1357a. 

Questioned 

furisdiction to authorize investments by savings bank may be questioned by president 
obtaining order (N. J.) 838b. —voluntarily subraitte.6. to cannot be questioned (Neb.) 
796e. 

State Courts (see National Bank Act) 

have jurisdiction of suits by or against national banks (Me.) 488d, (Vt.) 1357a, (W. Va.) 
1394a. — of suits against bank as bailee or trustee (N. Y.) 1031a. —for a penalty 
(la.) 290b, (Mass.) 566d, (Pa.) 1211a, (Vt.) 1357b. —to recover usurious interest 
(Tex.) 1336a. — on attachment bond of foreign bank, voluntarily submitting to 
jurisdiction (Ga.) 165c. — to determine, on ex parte application, the necessity of en- 
forcing stockholder's liability (Mich.) 629b. — o/" indictments for larceny (Mass.) 556c. 
—for any ultra vires violation of law (S. D.) 1275b. — to interfere in affairs of na- 
tional bank (N. Y.) 1054a. 

have no jurisdiction in quo warranto proceedings against bank's officers (Conn.) 119b. 
— to issue injunctions against national banks (Mass.) 587a. — to make United States 
judges parties to bill for deposit made by their order (Mass.) 591c. — to execute the 
usury laws of a foreign state (Mo.) 704a. 

must treat federal court's decision on removal of cause as final (Neb.) 803a. 

rendering judgment for contingent liability, have exclusive right to determine amount due 
and issue execution (Wis.) 1406d. 

Venue 

must be district in which national bank is located (Mass.) 550c. 

Suits for penalty need not be brought in county where bank is located (la.) 290b., 



INDEX 109 



for a period less than Statute of Limitations is not a defense (N. Y.) 916c, 926d. 
Omission to discover forgery for three years is not laches in law(D. C.) 131b. 
See Particular Subjects. 

liEGAIi TENDER 

Congress has power to make treasury notes legal tender (N. Y.) 929b, 932a. 

Treasury notes are legal tender for payments of deposits made before such notes were 

made legal tender (D. C.) 138b. 
See Payment. 

liEGISIiATlIRE 

Banks 

cannot be created by legislature without assent of two-thirds of legislators (N. Y.) 8S2c, 
unless created under General Banking Act of 1838 (N. Y.) 883b. — interfered with 
by legislature if national banks (Pa.) 1197a. 

Banking Business 

may be regulated by legislature (111.) 231a, (la.) 282c, (Kan.) 324d. 

Bond 

by receiver with surety company for surety may be authorized (Wis.) 1422c. 

Charter 

may be granted by legislature (Tenn.) 1284b. — with power to issue bills of credit 
(Tenn.) 1285b. —by territorial legislature (111.) 181e. 

cannot be impaired by legislature (Ala.) la, 2c. 

cannot be repealed unless such right is reserved (la.) 282c, (Mass.) 529e, (Mich.) 600a> 

not affected by appropriation for judgments against state banks (Ark.) 46c. 

Power to alter does not depend on manner of exercising it (N. Y.) 916a. 

Right to repeal must be exercised on parent and not on branch bank (Va.) 1374a. —in- 
cludes right to inquire into facts (la.) 283a. — cannot be altered by legislature if 
vested (Tenn.) 1300a. 

Distribution 

of assets of bank with forfeited charter provided for by legislature (La.) 401d. 

liquidation 

provided for and time for payment extended by legislature (La.) 419d. 

Loan 

of notes of another bank at six per cent may be authorized by legislature (Tenn.) 1286a. 

Preference 

may be given savings bank deposits in insolvency (N. Y.) 978c. 

Presumption 

of fraud raised by statute by failure within 30 days after receiving deposits (Ind.) 276a. 

Revocation 

of authority as to assets of bank in which state is only stockholder, made bv legislature 

(S. C.) 1264d. ■ _ * 

of unused authority to issue circulation notes, made by legislature (Minn.) 662d. 

Special Acts 

legalize usurious transactions (Va.) 1380d. 

remedy defects and irregularities in certificate of incorporation (N. Y.) 897a. 

create ofEce of bank visitor and fix salary (Ark.) 44c. 

Stock 

of bank may be purchased by city, under authority of legislature (Va.) 1370a. 

Stockholders 

divided into classes and right to transfer or vote may be denied (Conn.) 118b. 

Stockholder's Liability 

may be created (N. Y.) 1087a. —extended (N. Y.) 1078c. —released and capital limited 
to amount paid at passage of act (La.) 420b. 

Tax 

may be levied by legislature on property of national bank (N. J.) 830b, and if unpaid, 
legislature may provide for reassessment (Wis.) 1406a. —twice unless forbidden by 
constitution (Wash.) 1388a. 

by state does not prevent legislature authorizing city to require a license (Mo.) 709b. 

for payment of bank stock purchased by city may be authorized (Va.) 1370a. 

on stock may be made in lieu of all other taxes (Tenn.) 1319b. 

cannot be contrary to charter rate, without bank's consent (Ohio) 1144b. 

Rule for taxation fixed by charter cannot be changed in absence of charter provision; -per- 
mitting it (Ohio) 1144b. 



110 BANKS AND BANKING 



LEGISLATURE— Continued 
Tax (continued) 

Legislature cannot prohibit subsequent tax legislation (Ohio) 1146c. — may exempt 

capital stock from tax (Ind.) 251e. 
Method of levying, may be prescribed by legislature in absence of constitutional method 
(La.) 450b. 

liETTEB OF CREDIT 

Acceptance is not necessary (Cal.) 92a. 

Advances by innocent party on faith of letter of credit may be recovered (La.) 427e. 

Letter of credit is an acceptance of bill drawn on it (Cal.) 83b, if acted upon within 

reasonable time (La. ) 386b. 
Party giving letter of credit is liable to holder whose draft is dishonored (Cal.) 70c. 
Revocation may be made in so far as not acted upon (La.) 448a. 

LIEIV 

(See Stock) 
Of bank (see Stock) 

for advances on bill of lading is paramount to subsequent levy on goods (Ky.) 355e. 

attaches to stock of individual for partnership debt (N. Y.) 909b, 

is created only by contract, express or implied (Tex.) 1326a. 

under a trust deed, as to improvements, is prior to that of a builder, holding a second 
trust deed (Va.) 1376c. 

on securities pledged is subject to equities of third persons (Pa.) 1219c. 
for balance due it from forwarding bank extends to paper in its hands for collection 
(Ind.) 251a, (Okla.) 1166a. 

for balance of draft, is not waived by accepting part payment (La.) 426a. 

on bonds deposited with it by correspondent bank to cover overdrafts, is superior to 
claim of holders of unaccepted drafts (S. C.) 1267a. 

on property attaches to proceeds of sale (Md.) 506a. 

is lost for failure to post by-law (la.) 299d. 

Jor stockholder's debt applies only to banks of issue (Pa.) 1216b. — w not waived by 
by-law allowing bank to purchase debtor's stock (Mich.) 624c. —is not impaired by 
delay in bank's organization beyond statutory period (N. C.) 1123d. — «.s not divested 
by sale of stock on execution (Pa.) 1193a, (N. Y.) 909b, (Ga.) 138c. —is for bank's 
sole benefit (R. I.) 1250c. —extends to equitable owner of stock (Ala.) 30c, and to debt 
due bank from firm of which he was a member (Mich.) 624c. —prevents transfer of 
stock (Pa.) 1173c. —is binding on transferee of stock (Mich.) 624c, (Mo.) 743a, 
notwithstanding corporation law gives transferee legal and equitable title (Va.) 1377a. 
—is not binding on transferee, if transfer of stock is made without notice of by-law 
giving lien (la.) 299d, (Miss.) 687c. —is lost after assignment of stock, if debt is 
discharged, although assignee becomes debtor of bank (Ohio) 1141c. —extends only 
to secure indebtedness created with bank directly, and not to any indebtedness pur- 
chased from third parties (N. C.) 1123d. —is transferred by assigning judgment 
against stockholder (Pa.) 1193a. —given to bank (Ga.) 154a. —is only for its own 
benefit and not collusively for another (Ky.) 372b. —is only to extent of stock- 
holder's interest (R. I.) 1254d. — is only when stock -is transferred on books to 
debtor (Ind.) 253a. —is only for a loan made in good faith (Kan.) 339d. —is on 
stock, though amount is less than value of stock and debt is not due (Pa.) 1175d. 
—is against transferee of stock (N. Y.) 909c. —matures on last day of grace of 
unpaid note (Pa.) 1194d. —is on collateral against owner's assignee for creditors 
(Ark.) 55d. —is on deposits for debt of depositor (Mich.) 621f, (Mo.) 712a, (N. Y.) 
1080c. —is without request of depositor (la.) 294a. —is on proceeds of paper placed 
with it for collection (Mo.) 721a, and it cannot be taken away by attachment (N. Y.) 
1086a. —is superior to that of judgment creditor (N. Y.) 1098a, and it is not waived 
.by proving debt against deceased depositor's estate (Mo.) 721a. —is on principal's 
money in agent's name for debt of agent (Kan.) 337d. —is on depositor's demand 
note (Mich.) 626b. —is on notes of corporation faUing due before appointment of 
receiver (N. Y.) 1075d. — is on proceeds of notes for collection for depositor's debt 
(R. I.) 1255e. Bank is estopped to set it up where stock is purchased on cashier's 
representation that it is free from lien (Mich.) 625c. Bank may refuse to transfer 
stock, though stockholder has deposited greater than amount of lien (Pa.) 1177c. 
Until lien is satisfied, a charter provision against transfer of stock apphes to note 
indorsed by stockholder, not due (Pa.) 1175b. Where lien attaches before notice of 
assignment, bank may refuse to transfer to assignee (Pa.) 1194d, and usage of bank 
as to transfer of stock of owner indebted, is binding on assignee of owner (Pa.) 1172a. 
Doctrine of, does not exist in Pennsylvania (Pa.) 1216b, 1219c. Notice thereof need 
not be given on certificate of transfer (Ark.) 55a. Where debt is less than value of 
stock, bank need not apportion (Pa.) 1175d. Amount of Hen cannot be determined 
by tender made to release (N. Y.) 1007a. If misdescribed in advertisement to sell 
debtor's property, purchaser, relying on misdescription, is protected (La.) 413e. As- 
signment of stock carries only right to redeem collateral subject thereto (Ark.) 55d. 



INDEX 111 

LIEN— Continued 
Of bank (continued) 

Lien of pledge of stock is prior to ^Aaif of judgment creditor (la.) 296c, with notice (Ark.) 
59d. — 0/ creditor taking stock as collateral (Ky.) 372b. 
i Bank may refuse to permit transfer of stock until stockholder's notes are paid (Ohio) 
1134b, but not if transferee has no notice of by-law giving lien (Mo.) 742c. Bank, 
by its by-laws, cannot create secret liens as against purchaser for value of stock with- 
out notice (Cal.)69b. Lien of bank continues against stock, though pledged and 
bank purchases pledgee's business (Mo.) 742c. 

Bank has no lien on partnership assets for unidentified funds loaned to partnership (Fla.) 
135b. — en stock pledged and left in bank as collateral by pledgee (Mo.) 742c. — on 
stock in hands of second assignee for debt of intermediate owner (Ind.) 253a. — on 
deposit (111.) 195e. ^/b?' advances not due, (Mo.) 754a. — as against person presenting 
check received in regular course (111.) .235b. — after notice to depositor to increased 
deposit (Mo.) 754a. — as against depositor until debt is due (Mo.) 713d. —for debt 
of broker on bonds deposited by him which he is commissioned to sell (Neb.) 772c. 
-f^or a general account on property pledged after pledge loan has been paid (N. Y.) 
997b. — as against administrator, on deposit for debt not maturing in life time of 
deceased depositor (N. Y.) 983a. — on certificate of deposit, issued by it, supposed 
to be held but previously assigned by maker of note discounted by it (N. Y. ) 937d. 
— on shareholder's stock for debt due (N. C.) 1103a. — on draft left for collection, 
where it has advanced nothing on it (Ohio) 1156c. — on notes left for collection 
(Pa.) 1177c. 

Bank selling a pledge held for a specific debt has no lien on proceeds for any other debt 
of pledgor (Ky.) 364c. National bank has no lien on stock held by its debtors 
(N. J.) 836c. 

Of creditor 

of bank cannot be created by service of writ (Me. ) 471d. 

by attachment is not dissolved by appointment of receiver (Neb.) 785d. 

is purely equitable (N. Y.) 990c. 

Creditor za.rnxot obtain prior lien on bank's assets by obtaining judgment (Tenn.) 1292b. 

By gamislimeiit 

of a fund of which bank is custodian (la.) 290c. 

By judgment 

Prior judgment against bank has prior lien on proceeds of satisfied execution (Ga.) 156c. 
Judgment on bank's bond is not a lien on its real estate after appointment of receiver 
(la.) 294d. 

Of judgment creditor 

protects purchaser if judgment is had before notice of unrecorded deed (Ala.) 26b. 

is created by levy on money deposited (Cal.) 62f. 

by execution is superior to claim of assignee of stock not transferred on books of bank 

(Ind.) 247c. 
on land cannot be redeemed by tender of certificate of deposit to sheriff (la.) 283b. 
attaches to sum due stockholder from bank (Minn.) 650c. 

Pledgee's Hen 

depends on possession (N. Y.) 873b. 

State's lien 

on property of insolvent bank for debt due is prior to all others where bank is state 
depository (Ga.) 162b. 

State has no lien for an indebtedness due it on bonds deposited by bank with comp- 
troller to secure circulation (Wis.) 1404d. 

Association 

Loan association is not a bank (Cal.) 80a. — owner of fund charged to and marked for 
borrower, who paid interest and drew at will (Cal.) 72d. 

By Bank 

Loan to public oificer may be recovered, though partly misappropriated (N. Y.) 1025e. 
Loan on personal security is proper (Colo.) 105b. 

Definition 

Loans are deposits payable with interest (N. Y.) 904c. —deposits on bank's bond with 
guarantors (N. Y.) 1023b. — credits given by cashier and entered in passbook (N. D.) 
1130d. — overdrawals of account with bank's consent (Colo.) 100b. —payments of 
draft beyond drawer's funds (Mass.) 536a. — bank's payment of interest by its own 
check (Cal.) 92a.' 

Loans are not uncanceled checks given for notes (Mass.) 538c. — deposits of public money 
(S. D.) 1278d. 



112 BANKS AND BANKING 



LOAN— Continued 
Director 

loaning on collateral does not lessen pledgee's right to sell (Cal.) 90d. 

Evidence 

of value of collateral taken by other banks is admissible in suit for excessive loan 

(N. Y.) 1092c. 
as to whether party considered security sufficient is incompetent in suit for fraudulent 

loan (Utah) 1346a. 

Guaranty 

of ultimate payment extends to substitutions, renewals and extensions (Conn.) 123b. 

Loss 

for loaning to unknown person falls on loaning bank (Mo.) 739c. 

Novation 

is worked by giving and receiving a new note for note of third party (Cal.) 85c. 

Security 

must be accepted and money advanced before loan is made (D. C.) 131a. 

though void does not prevent recovery on loan (N. Y.) 102ib. 

may be given by officer without vote of directors (Cal.) 72b. 

for savings bank may be note, bond and mortgage (N. Y.) 1022a. 

Loan secured by stock is deemed to be made on that security (N. Y.) 904d. 

Statute of Limitations 

of six years bars loan shown by certificate of deposit, only after demand (N. Y.) 934b. 

Stockholder 

Stockholder' s loan is lawful and may be secured by mortgage (Ala.) 23a. — valid to one- 
half his holdings of capital stock, but his deposits are not applicable to payment 
thereof (Ark.) 44b. 

Taxable 

if solvent and secured by stocks and bonds, though evidenced by note only (Cal.) 97c. 

Ultra Vires 

no defense to borrower (Mo.) 743a, (N. Y.) 1009d. 

Valid 

for an amount greater than that authorized by law (la.) 306a. 

Vendee 

without notice is protected against hen on goods purchased by vendor with borrowed 
money (Tex.) 1332c. 

Void 

if given for loan of foreign bank notes, contrary to laws of that state (Mo.) 704a. 

LOST IIVSTRIJIHENTS 

Action 

Equity will grant relief where a written instrument is lost or destroyed (Mass.) 551b, 
(Tenn.) 1286b. 

Right of action exists by depositor against bank for loss in sending check to clearing- 
house (N. Y.) 1089d. —payee of check against bank for conversion where check 
is stolen and deposited to holder's credit (N. Y.) 1089a. —holder of part of a bank 
bill who proves title to the whole (Conn.) 109d, (III.) 181a; or gives indemnity 
(Ky.) 354a, (La.) 390d, 410a. — bona fide holder of stolen bills, but he cannot 
give title to one aware of theft (Conn.) 117e. —express company for payment of 
notes supposed to be lost, but found to have been destroyed (Pa.) 1194c. — de- 
positor against bank losing a check deposited (N. Y.) 1089b. —holder of duplicate 
against drawer of original lost bill of exchange paid by drawee (La.) 399a. 

Not barred by incorrect description of bills (Ala.) 26c. 

Conditions precedent. In equity, demand must be shown where instrument is payable 
on demand at specific place (N. Y.) 1106d. On draft, presentment and dishonor 
must be shown (Kan.) 327c. 

Definition 

Destruction of signature not within meaning of lost instrument (La.) 375a. 

Effect of loss 

Loss of half a bank note cut for transmission does not affect parties' rights and whole 
maybe recovered in equity on giving indemnity bond (La.) 410a, (N. C.) 1103c. — check, 
subsequently forged, does not discharge debtor (N. Y.) 994c. —certificate of deposit 
in transit leaves title in indorser (N. Y.) 874a. —contract does not relieve party 
from performance on indemnity being given (Mass.) 551b. —check lost in forward- 



INDEX 113 

LOST INSTRUMENTS— Continued 
Effect of loss (continued) 

ing for collection cannot be charged back to depositor and demand must be made 
by bank thereon (Mo.) 745b. 
Forwarding, bank may recover from holder of note lost before collection and paid under 
mistake (N. Y.) 876a. 

Indemnity 

Required on lost certificate of deposit (Cal.) 62d; contra, if unindorsed (Ind.) 260d; 
unless non-negotiable or past due (Neb.) 786d, 786e; and judgment thereon stayed 
(Mass.) 584b. — bank bills unless sufficiently identified (Tenn.) 1286b; contra 
(Ala.) 26c. — bank bills where lost subsequent to judgment (Ga.) 146b. —pass- 
book, where by-law requires production thereof (N. H.) 812c, (N. Y.) 1015c; contra, 
where no adverse claim (R. I.) 1254b. 

On failure to identify, offer of indemnity will not compel payment (Mass.) 546d. 

Statute allowing indemnity not applicable to savings bank book (N. Y.) 1088e. 

Tender not necessary before receiving payment where maker of negotiable instrument 
would not be obliged to pay bona fide holder (Ohio) 1158b. 

Notice and AfiBdavit 

Statutory remedy as to affidavit of loss, cumulative (Ala.) 22c. 

Prompt notice of loss of deposit book should be given (N. J.) 843a, (N. Y.) 941c. 

Payment on lost passbook 

Bank must show care of prudent person (N. H.) 818d. 

Question of reasonable care is for the jury (N. Y.) 1095b; also credibility of depositor 
and circumstances of loss (N. Y.) 1027b. 

Proof of Loss 

Positive evidence of bank bills' destruction required (Ky.) 353b, (La.) 398d, (Mass.) 546d. 
Contents of bank bills destroyed by fire, proved by declarations of owner just before 

the fire (Vt.) 1346b. — notes maj not be proved without first accounting for their 

absence (Mo.) 697b. 
Protest admissible on question of bona fides of holder (Conn.) 117e. 
Administrator entitled to savings bank deposit on accounting for loss of passbook 

(R. L) 1254b. 
Owner's declarations at fire not admissible (Ohio) 1134c. 
Proof of amount not made by loser's testimony, without identification (Ohio) 1134c. 

Witnesses 

Administrator not bound to examine relatives of deceased as to whereabouts of pass- 
book (R. L) 1254b. 

mAIVACERS OF SATIIVGS BAIVK 

(See Directors) 

IHEA!S1JR£ OF DAMAOES 

For conversion 

of stock is its value when demand was made, with interest (Cal.) 83b. — is from time 
of conversion, with interest (Tex.) 1330c. — to one holding stock as collateral, is 
value of his debt (N. D.) 1129a. Dividends accruing after conversion are no part of 
damages, except on special demand (Cal.) 83b. 

of certificate of deposit, is prima facie its face value (Dak.) 125e. 

of notes, is amount nominally payable (N. Y. ) 943a. 

of collateral, is value of holder's special interest (N. D.) 1129a. 

For failure 

to present note, is face value (N. D.) 1129d. 

to make proper demand on note, is full amount only when maker is insolvent (Ohio) 

1131d. 
o/" collecting bank to find solvent indorser, is prima facie the amount of note (Wis.) 

1421d. 
to present or protest check given to cover an overdraft, is prima facie the face of check 

(N. C.) 1111b. 
to notify indorser of protest of note, is actual loss suffered (N. Y.) 991b. 
to redeliver in specie, is full value of deposit (Ind.) 258e. 

For lost deposits 

is calculated by deducting payments made and allowing interest (Tex.) 1329c. 

For money received 

on forged indorsement, is amount with interest (N. Y.) 1006b. 

For vote on fraudulent proxy 

defeating election of bank president is one year's salary (Ga.) 173c. 



114 BANKS AND BANKING 



MEASURE OF DAMAGES— Continued 
Tor refusal 

to issue new stock, is market value at time of demand (Mass.) 515d, 523b. —is highest 

market price after demand (N. Y.) 909b. 
to pay note with funds in possession is amount with interest and costs (N. Y.) 1045c. 
to transfer stock is highest price after demand and before trial (N. Y.) 870b. —is in- 
terest on Talue during time withheld (Del.) 127b. 

MONEY 

Definition 

Currency means money (Wis.) 1408d. 

"Current funds" is not "money" (Wis.) 1403c, but is equivalent to it (Wis.) 1407c. 
Confederate treasury notes are not money for the payment of a draft (La.) 427b. 
"Lawful money" in bank bills means lavrful money at time of redemption (N. Y.) 932a. 

Issue and Circulation 

Use of money deposited is "circulation" not "issue" of money (Ala.) 27b. 

MORTGAGE 

Authority 

of legislative oflScers to settle State's claim does not extend to making state assume 

mortgage on property assigned by bank (Mich.) 599b. 
of cashier to execute mortgage is sufl&cient if given by director's resolution (N. Y.) 861c. 
to dispose of mortgage need not be given by director's resolution (N. Y.) 957b. 

Bank 

aiding debtor in conversion of chattels is liable to prior mortgagee under recorded mort- 
gage (Kan.) 324a. 

Consideration 

may be extension of payment of secured note (Ark.) 52b. — surrender of valid note and 
mortgage (Cal.) 92c. — fflcc^^to^zcr of worthless check in payment of draft (Me.) 488b. 

Definition 

Mortgage is created by pledge of property with power of sale to pay debt (Ala.) 28d, 
Mortgage is neither loan nor discount when for a preexisting debt (Mich.) 599c. 

Discharged 

by receiving certificate of deposit in payment (la.) 291b. — by payment of the secured 
notes (N. Y.) 978b. — by cashier, though power is given another (111.) 183b. 

Not discharged 

where mortgage is to secure stock subscription, by enforcing mortgage for stock loan 

(La.) 425d. 
by transfer of mortgage and release by secured bondholders (La.) 452c. 

Foreclosure 

may be fnade withont making prior incumbrancers parties (Ark.) 48d. — without making 
representative of mortgagor, who conveyed his interest, a party ( Cal. ) 67b. — by bank 
in its own name without making assignor's parties, where mortgage was assigned to 
cashier, successor or assigns (Mich.) 616d. — dj/ national bank, which was a, state bank 
when mortgage was taken (Neb.) 773c. — fij/ bank's receiver (Neb.) 781c. — cannot be 
made by trustee under an assignment (Ark.) 45e. 

proceedings are not governed by sec. 299, Civil Code (Cal.) 87c. — are no defense to suit 
on another note (Cal.) 93b. — are proper, though personal security was also taken 
(Ark.) 49b. — do not merge trust deed (Cal.) 89a. — are not permitted if mortgage 
was to secure usurious interest (Neb.) 785a. 

sale may be set aside if without notice to mortgagor's assignee (Ala.) 19a. — if mort- 
gagee's interest and equity of redemption merged pending proceedings (Ala.) 19a. 

Payment 

Time for payment may be extended by receiver of national bank (N. D.) 1129c. 

Presumption 

is that bank charter gave bank power to take (Ind.) 248c. 

Property Banks 

may sell under junior and then under senior mortgage (La.) 425c. 
do not require reinscription of their mortgages (La.) 422c, 445b. 

Purchaser 

not bona fide, if taking mortgage with knowledge that it was made by one non compos 
mentis (Wis.) 1414d. 

Ratification 

of mortgage given by wife is implied by husband's uniting therein (La.) 416d. 



INDEX 115 



MORTGAGE— Continued 
Record 

Failure to, does not estop bank from accepting payment of debt (la.) 298c. 

Sale 

in probate does not affect bank's charter right to seize and sell such property (La.) 405c. 
to bank by trustees, who are stockholders, is valid (Cal.) 99c. 

Statute of Limitations 

bars mortgage notes due more than four years before owner's death (Cal.) 67b. 

Title 

does not pass to stock subscription mortgage delivered without authority, while con- 
ditions are unperformed, if bank does not treat mortgagor as stockholder (N. Y.) 903a. 

VaUd 

as to mortgagor if given before bank is incorporated and recognized by mortgagor by 

paying interest after incorporation (N. Y.) 879b. 
betwee-ti parties, if held by a. national bank (N. J.) 845d. 
if given to trustees, who are stockholders (Cal.) 99c. 
if given to bank to take up one made to bank president (Cal.) 79c. 

if by fraudulent grantee to grantor's creditor, even with knowledge (Neb.) 804a, 804d. 
to secure future advances (Miss.) 668b. 

to secure the guaranty of a fraudulent vendor (Neb.) 804a, 804d. 
on property sufficient to coyer bank's claim (Kan.) 323c. 
on wife's paraphernal property, with husband's consent, if authorized by bank charter 

(La.) 433a. 
though acknowledged by officer of bank (la.) 310d, if he is not a stockholder (Fla.) 137a. 

Invalid 

if given to national bank on real estate (111.) 198c. — without consideration (Okla.) 
1164b. — without corporate seal (Conn.) 111b. 

MUJriCIPAL, CORPORATIONS 

(See Taxation) 

NATIOl^irAIi BANK ACT 

(Act op Congrbss, June 3, 1864- ; 13 Stat, at Large, ch. 106, p. 99; i 
U. S. R. S. SECS. 5133-5243) 
General Construction 

Authority of bank is limited by Act (111.) 245a. Only U. S. can proceed for violations of 

Act (N. C.) 1114b. 
State laws do not apply to national banks (Pa.) 1221d. State courts have jurisdiction 

in actions arising under Act (Ohio) 1155a. 
Operation will not be enlarged by state courts (Neb.) 803c. 
Banks are subject to state legislation not in conflict with Act (Ala.) 39c. 
Directors have only powers conferred by and necessarily incidental (Vt.) 1357c. 
Organization of clearing house does not violate Act (Pa.) 1236a. 
Provision of Tax Act that stockholder be represented by bank officer does not make Act 

inapplicable to national banks (Ind.) 259 b. 
Act is not unconstitutional (D. C.) 133a, 133b. 
(Note. — Sections of U. S. R. S. here construed are derived from the National Bank Act of 
June 3, 1864, with amendments. U. S. R. S. sections and corresponding sections in the 
National Bank Act are given.) 

U.S.R.S. N.B.A. 

884 2 Comptroller 

Certificate, under comptroller's seal, appointing receiver admissible 
without proof of signature (Neb.) 801a. 

5136 8 Powers 

Bank may be sued in county where plaintiff resides (N. Y'. ) 1007a. 
Checks td order or bearer purchasable by bank (Mass.) 554a. 
Sec. 8 N. B. A. is not modified by sec. 57 (N. Y.) 940c. 

5137 28 Real Estate 

Bank not prohibited to take by mortgage (111.) 210b. —having lien on 
land can. discharge prior lien and take mortgage to secure itself 
(Kan.) 313b. — may sell its real estate, reserving mortgage (La.) 
439a. —maytaks. mortgage to secure an existing debt (Me.) 488b. 

Contract to turn over insurance for procuring depositor is ultra vires 
(Mass.) 589b. 

Bank may take assignment of mortgage as collateral (Mass.) 558c. 



116 



BANKS AND BANKING 



U.S.R.S. N.B.A. 



5139 12 



5142 13 



NATIONAL BANK ACT— Continued 

Keal Estate (continued) 

Mortgagor to bank cannot set up ultra vires of bank in defense to 

enforcement of loans (Neb.) 806b. 
Mortgage received on reorganization of state into national bank may 

be foreclosed (Neb.) 773c. — to secure future advances is void (N.Y.) 

978b. 
Indorsement to bind separate estate of wife, not a mortgage (N.Y.) 981b. 

Transfers 

No transfer of stock by any person other than stockholder allowed, 

except on proof of authority (Ind.) 261c. 
Executor or administrator cannot sell bank stock without order of 

court (id.). 
Stock is not transferable by blank indorsement (id.). 
Transferability of stock depends on federal laws (N. D.) H27b. 
Common law transfer valid except as against bank stockholders, and 

creditors (id.). 
Unrecorded transfer of stock is superior to subsequent attachment 

against transferrer (id.). 
This section, coupled with by-laws of bank relating to stock transfers 

is not a registry law (id.). 

Increase of Capital 

Comptroller-'' s certificate for less capital than voted does not bind sub- 
scriber to original increase of stock (Mass.) 579b. 

Payment on subscription may be recovered if increase not completed (id.) . 

Receiver can collect stockholder's note for stock (Miss.) 693b. 

New stock not issued in conformity to Act is void, and purchaser, on 
insolvency of bank, is not a stockholder but a creditor (Mo. ) 734a. 

Subscriber for new stock not issued according to Act, is not estopped 
because of knowledge of facts (Mo.) 734b. 

Comptroller's certificate prerequisite to increase, and tax on such in- 
crease without certificate is void (S. C.) 1266c. 

Directors 

Director must be a stockholder (Mass.) 581b. 

Stockholder's Liability 

Certificate of comptroller assessing stockholders admissible in action to 

enforce liability (Neb.) 801a. 
Stockholders' liability, several not joint (S. C.) 1269a. 
See also sec. 5234. 

Reorganization into ITational Banks 

Savings banks can become national banks (D. C.) 131c. 

Assets or liabilities not changed by reorganization (Mo.) 707b, (Neb.) 

773c. 
Organization of national bank vrith same officers as liquidated state 
bank is not a continuance of state bank (Neb.) 792a. 

Comptroller's Certificate 

Bank can commence business without publishing certificate of comp- 
troller (N. Y.) 956a. 

Place of business 

Bank is not compelled to do business during its entire existence at 
place designated (111.) 230d. 

Interest 

on loan to N. Y. corporation allowed at N. Y. rates (N. J.) 829b. 

above legal rate will be applied on principal (Neb.) 771a. 

when usurious cannot be deducted firom principal (Neb.) 789d, 794b, 

(N. Y.) 982c. 
on usurious note forfeited (N. Y.) 1038a. 

iudicial notice taken of rate allowed by state law (N. C.) 1116a. 
limited to seven per cent where no statutory rate (N. Y.) 982c. 
when usurious and paid on renewals of notes, cannot be applied on 

debt (W. Va.) 1395a. 
Bank can charge seven per cent (Cal.) 81c. 
Bank can only take rate allowed by state where situated (N. Y.) 958d, 

(S. D.) 1275b, (Wash.) 1383b. 
National bank is limited to rate allowed to state banks (Ohio) 1153a. 
Plea of usury is good in suit for unpaid interest- (Neb.) 797c. 
Section applies to business and accommodation paper (N. Y.) 982c. 



5146 9, 10 

5151 12 

5154 44 

5169 18 

5190 8 

5197 30 



INDEX 117 

NATIONAL BANK ACT— Continued 
U.S.R.S. N.B.A. 
5198 30 Usury and penalty 

Sec. 30 applies where interest usurious, though note does not show it 
(Ky.) 365b. — applies to business and accommodation paper (N. Y.) 
982c, but not to note given as collateral for usurious loan (Neb.) 
803c, nor to bank's private contracts (N. Y.) 963d. —is penal (Ohio) 
1155a; contra, merely prescribes mode of recovery (Neb.) 798c. 

Action for penalty does not lie until principal is paid (Kan.) 329a, nor 
for excess of interest after recovery of penalty (Vt.) 1359b. — need 
not be brought in county where bank is situated (la.) 290b. — may 
be brought for each payment of usury separately (W. Va.) 1394a. 

Accommodation indorser may set off usury paid by maker (N. Y.) 983c. 

Affidavit of defense not necessary (Pa.) 1231c. 

Burden is on bank to prove agreement for application of interest pay- 
ments on notes (la.) 290b. 

Complaint must allege that bank knowingly contracted for and received 
usury (Neb.) 775c. 

Ownership of usurious note by third person at time of payment, defense 
to be proved by bank (Neb.) 779a. 

Penalty for usury cannot be set off (111.) 203d, (Mass.) 568e, (N. Y.) 
993d, (Pa.) 1214c, (Tex.) 1331c. 

Setoff not allowed against penalty (Pa.) 1214d. 

Usurious interest cannot be set off against principal debt two years 
after payment of usury (Neb.) 794b, (Ohio) 1154a. 

Payment of usurious interest applied on principal (Mo.) 720e. — on 
usurious contract not payment of usury unless specifically appKed to 
usurious interest (Tex.) 1325d. — o/" usurious loan not a condition 
precedent to maintaining action for penalty (Neb.) 788d, 789a. 

Forfeiture of Interest 

incurred by bank stipulating for usury (Mass.) 568e, (N. Y.) 983c, 
(N. C.) 1110c, (Pa.) 1202b, 1204d, even though the usury is not 
paid (Ky.) 372a. —taking nsvixy (Ind.) 260b, (Ky.) 368d, 369a, 
(Mass.) 568e, (N. Y.) 1038a, 1042c, (Ohio) 1152c, (Pa.) 1202b, 
1210b, 1217c. — before and after maturity of usurious note 
(Ohio) 1153a. 

Bank cannot foreclose mortgage founded on usurious note, and interest 
will be forfeited (Neb.) 784c, 785a. 

Two years liinitation on recovery of penalty, runs from the payment of 
the usury (la.) 290b, (Kan.) 327d, (Ky.) 368d, (Neb.) 780e,788a, 
794b, (N. J.) 841b, (Pa.) 1214b, 1214d, (Tenn.) 1312c, (Tex.) 
1325d, (W. Va.) 1394a; but not from the reservation of usurious 
interest by way of discount (Neb.) 788a. — runs from time of usur- 
ious transaction (Ky.) 367a, (Neb.) 789c, (Ohio) 1153b. —does 
not affect defense of forfeiture (Mass.) 566d. — ^^aj no appUcation 
where usury is retained orreserved (111.) 203d. Action is not main- 
tainable five years after usury paid (la.) 310a. 

Usurious discount is forfeited (N. Y.) 983c, 1038a. 

'■'Usurious transaction'" refers to time when usury paid (N. J.) 842b. 

Penalty 

is twice the amount of interest paid (Ind.) 260b, (Ky.) 367b, (Tex.) 
1336a; and not twice the excess over legal rate (Neb.) 776c; contra 
(N. Y.) 973f, (Tenn.) 1312c. 

is recoverable in action for debt (Ind.) 260b. — only when usury has 
actually been paid or tendered (Ky.) 372a, (Mo.) 762c, (Neb.) 
777b, (S. D.) 1278a. —though usurious notes have been fully paid 
(Neb.) 795c. — i^j)/ one who has paid usury in advance (Neb.) 775d, 
778d. — by receiver (Ohio) 1158c. — by assignee of one paying 
usury (Pa.) 1214b. —by a partnership (Neb.) 798c. 

Bank taking usury is only subject to penalty prescribed (N. C.) 1110c. 

Creditor of party paying usury not within sec. 5198 (Tenn.) i309a. 

If joint inakers of usurious note, only the one paying usury can recover 
penalty (Kan.) 323d, 330d, (N. D.) 1130c. 

No interest is recoverable on penalty until after judgment (Kan.) 327d, 
(Ohio) 1154a. 

Recovery 

can be had of amount paid with legal interest if usury was not know- 
ingly reserved (N. J.) 829b. 

only of sum loaned by bank stipulating for usury (Ky.) 372a, (Mass.) 
568e, (N. Y.) 983c, 1042c, (N. C.) 1110c, (Pa.) 1202b, 1204d. 

No recovery of interest by person suing, unless he himself has paid usury 
(la.) 306c. 



118 BANKS AND BANKING 



U.S.R.S. N.B.A. 



NATIONAL BANK ACT— Continued 



Remedy 

for usury provided by Act is exclusive (Ala.) 36c, 37c, (Mo.) 762b, 
(Neb.) 784c, (N. H.) 816d, (N. Y.) 948c, (N. C.) 1114b, (Ohio) 
1154a, (Pa.) 1211a, 1214c. 

State Courts 

can compel restitution of usurious payments according to state law 
(Tenn.) 1299e. 

have jurisdiction in action for usury (la.) 288d, 290b, (Ky.) 367a, 
367b, (La.) 438d, (Mass.) 566d, (Minn.) 649c, (Neb.) 775a, 775c, 
775d, 776c, 778b, 783b, (N.C.) 1116a, (Pa.) 1211a, 1214d, (Tenn.) 
1299e, (Tex.) 1336a, (W. Va.) 1394a; contra (Tenn.) 1303a. 

Jurisdiction given state courts, permissive, not compulsory (Neb.) 775a. 

Objection to jurisdiction must be taken before answer (N. C.) 1116a. 

Powers <?/" state courts in usury actions not abridged by sec. 57 (La.) 
488d. 

State Laws 

govern national banks except when in conflict with federal statutes 

(Neb.) 803c. 
not applicable (Mass.). 556a, 556b, (Neb.) 789d, 795c, (N. J.) 837c; 

contra (N. Y.) 958d, 964e. 
Action for usury against national bank is not maintainable under G. S. 

ch. 213 (N. H.) 816d. 
Bank not amenable to code, sec. 4140, in action for usury (Ala.) 37c. 
Comp. Stats, sec. 5, not applicable in suit for usury against national 

bank (Neb.) 789c. 
Court vaill take judicial notice of rate of interest allowed by state law 

(N. C.) 1116a. 
Debtor may avail himself under state law of any defense which accrued 

before he knew bank owned usurious note (Neb.) 784c. 
Penalty for usury not exclusive of penalty under state laws (Neb.) 795c. 
The Act has force only in states and territories where no interest is pre- 
scribed (N. Y.) 963d. 

General 

No distinction exists between liability of principal and that of surety 
(Ind.) 260b. 

Claim, for usury is not assignable (la.) 306c. 

Usury does not forfeit the debt (N. Y.) 1094c. — on original note affects 
all renewals (Ky.) 369a. 

Mere indorsemeut of usurious note by bank's notary raises no presump- 
tion of transfer to third person (Neb.) 779a. 

Draft ursuiously discounted does not draw interest even after maturity 
(N. Y.) 1038a. 

Interest after maturity of usurious draft deducted from judgment (id.). 

Com.mission received for procuring discount not usury (N. Y.) 979b. 

Reservation of usurious interest does not render note void (Ind.) 260b, 
(Ohio) 1153b. 

Agreement for usury cannot be enforced even against a corporation 
(111.) 228d. 

"Legal representatives" includes an assignee for creditors (Ky.) 367a. 

5200 29 Limitation of Loan '■', 

does not affect loans made by state bank before its conversion into 
national bank (Ohio) 1153c. 

Bank may recover full amount of loan, though more than ten per cent 
of its capital (Mass.) 581a, (Pa.) 1204b. 

Cross drafts of two firms not subject to prohibition against bank lend- 
ing in excess of one-tenth of capital (N. Y.) 1008a. 

5201 35 Purchase of its Own Stock 

Attachment by bank or sale on execution of its own stock not a hold- 
ing of its shares (Me.) 482b. 

Bank can acquire interest in stock by purchase to prevent loss on bona 
fide debt (N. Y.) 953b. —by-law forbidding transfer by stockholder 
indebted to bank is void (Va.) 1377b. 

Pledge of bank stock purchased in violation of act is valid (111.) 227c. 

Stockholder cannot give bank lien on his stock for indebtedness (id.). 

Taking stock in compromise of a claim to prevent loss not forbidden 
(Md.) 506d. 

5205 Impairment of Capital 

Purchaser acquires no title to delinquent stock sold to pay assessment 
unless purchase price equals assessment (Ga.) 174c. 



INDEX 11* 



NATIONAL BANK ACT— Continued 
U.S.R.S. N.B.A. 

5208 Certification of Checks 

Bank can certify checks (N. Y.) 1028a. 

5209 55 Embezzlement 

Sec. 55 punishing theft is not intended to regulate business of banks- 
with customers (Conn.) 119a. 

5211 34 Reports to Comptroller 

Directors making false reports liable for deceit (Neb.) 802c, 805d. 
Issuing report not a corporate act and directors not participating 

therein not liable for any misrepresentations (Neb.) 803a. 
Item of interest on rediscounts need not be specifically included (Neb.) 

805d. 
Officer's published statement as to condition of bank may be relied on 

by stockholders and they need not examine bank's books (id.). 
Officers bound to know bank's condition and are liable for incorrect 

reports (id.). 
Overdrafts included as loans constitute false representation (Neb.) 805d 

5219 41 Taxation, Application and Construction 

Section does not make act a bill for revenue (D. C.) 133a, 133b. 
National and state banks need not be taxed on same plan (la.) 299c. 
Exemption of bank shares from taxation except at location of bank 

was within powers of Congress (Mass.) 549b. 
Tax on notes belonging to bank is tax on business of bank (Nev.) 808b. 
State may tax property of National bank (N. J.) 830b. 
Bank shares taxable by state subject to Act (N. J.) 830b, (N. Y.) 935b, 

(Tex.) 1332a, (Wash.) 1386a. 
This section, together with by-laws of bank relating to stock transfers,. 

do not constitute a registry law affecting title to shares (N. D.) 

1127b. 
Stock not wholly exempted from taxation (Pa.) 1201d. 
Object of Act is that shares be assessed at place of bank (111.) 193d. 

5219 41 Actions 

A state may resort to bank as garnishee for a tax against stockholders 
(Wash.) 1382a. 

Complaint to recover illegal tax paid on shares must show discrimina- 
tion (Wash.) 1382e, (Wis.) 1405c, 1406a. 

Inequality between rate of taxation and market value of stock is no 
ground for equitable relief (N. M.) 848b. 

Bank's Funds and Personal Property 

Fixtures and money are not taxable (Cal.) 89b, nor is personal prop- 
erty (Mont.) 769a. 

Surplus is taxable (N. H.) 815c; and when invested in government 
bonds is taxable as money at interest (N. H.) 816b. 

Capital stock 

is not subject to state taxation (Cal.) 89b, (Kan.) 320b. 
Gross assessment on capital stock is invalid (Ala.) 30a. 
Only shares are subject to state tax (Mich.) 605c, (Mo.) 705b, 720c. 
Tax on capital stock distinguished from tax on shares of individuals- 
(Utah) 1341c. 

Deduction 

of stockholder's debts should be made from assessment on his stock 

(Ala.) 31b, (Ind.) 269c, (N. C.) 1116c; contra (Kan.) 324b, (Neb.) 

778e, (Ohio) 1161c, 1162c, 1163c, (Wis.) 1409a. 
for value of bank's real estate, when omitted renders taxation double- 

and illegal (Ind.) 271b, but if tax is voluntarily paid it cannot be 

recovered (id.). 
same for holders of national bank shares as other tax payers (Ind.) 

269a. 
■ double to national bank shareholders is void (Kan.) 320b. 
of debts secured by mortgage should be made from value of real estate- 

thereby covered (N. J.) 845d. 
for stockholder's personal indebtedness not authorized by Act of 1866,. 

ch. 761 (N. Y.) 943c. 
same for national bank shares as for those of state banks (N. Y.) 

935b, or for other moneyed capital (Wash.) 1386b. 
none on account of franchise, untaxable bonds or real estate (Ohio)» 

1151d. 



120 BANKS AND BANKING 



U.S.R.S. N.B.A. 



NATIONAL BANK ACT— Continued 

Deduction (continued) 

Refusal to deduct debts of non-resident stockholder is not an illegal dis- 
crimination (Utah) 1345b. 
Value of real property without the state cannot be deducted from value 
of shares (id.). 

Definitions 

'■^Moneyed capital" includes all credits (Ind.) 269a; but not shares of 
trust company (N. Y.) 1096a. — embraces investments in banking 
associations (N. C.) 1116c. —;«^a?zi taxable moneyed capital (Ohio) 
1163b. 

"Place" refers to location of bank and not to state authority under 
which tax is assessed (Me.) 4;78a. — means smallest tax district in 
which bank is (N. J.) 826b. 

Direct Tax Against Bank 

cannot be imposed (Pa.-) 1197a. 

Discrimination 

not allowed against national banks (Ala,) 30d, 

against national bank shares, by exemption of state bank shares, renders 

assessment void (Cal.) 85b, (Ind.) 258c, 258d. 
results from attempt of State to tax capital only of its own banks, 

while taxing shares of national banks (la.) 284d; or where state 

banks are permitted to deduct nou-taxable securities and national 

banks are not (N. Y.) 935b. 
does not result, because national banks taxed on shares and other 

corporations taxed on capital (Mont.) 768a; or unless shares are 

subjected to higher tax than other moneyed capital (Ohio) 1151d. 
must be plainly shown (Wash.) 1382e. 
Assessment of shares on valuation of bank's capital and surplus is not 

at a greater rate than on other moneyed capital (la.) 291c. 
Equity will not interfere in case of discrimination (Mo.) 762a. 
Shareholders need pay tax only equal to that on state bank shares 

(Ohio) 1151d. 
Shares must not be taxed more heavily than other moneyed capital 

(Ohio) 1163b. 
Shares taxable by state, though other moneyed capital exempt (Tenn.) 

1295b. 
Taxation on national bank stock not to exceed that on state banks 

(N. J.) 827b. 
Taxing national bank shares is not discrimination, though securities of 

individuals are exempt (Pa.) 1216d. 

Local Taxation 

Shares are liable for school tax (Ind.) 259d, and for municipal purposes 

(Ind.) 260c; but not for fire district purposes (Mass.) 574d. 
Bank is not liable for privilege tax by city ordinance (Tenn.) 1301a. 

Real Estate of Bank 

and shares only are taxable (Cal.) 95c, (la.) 285a. 
is not taxable (Ind.) 271b, (Minn.) 634c. 

Remedies 

Money paid on void assessment may be recovered (Cal.) 95c. 

Illegal assessment may be abated (111.) 192d. 

Taxes paid on exempt property are recoverable (Wis.) 1409a. 

Shareholders 

taxable for shares (Cal.) 95c, (Mo.) 705b. 

non-resident are taxable (N. J.) 827c. 

must be assessed for shares, not bank (Ohio) 1159a, (OUa.) 1165b. 

Shares 

are not taxable in gross (Ala.) 29d. 

represent not bank's assets but difference between value of its property 
and liabilities (Ind.) 280b. 

are liable to state taxation (Mo.) 711a, (Pa.) 1196d. 

are taxable without reference to amount of U. S. bonds (N. J.) 834c. 
—by states, though bank's capital be U. S. bonds (N. Y.) 983b. 
—M«zi? as other capital (Pa.) •1216d, (Tex.) 1325a. — though other 
moneyed capital is exempt (Tenn.) 1295b. — only according to this 
section (Wash.) 1386a. 

are separate property of owners not their interest in the common prop- 
erty of bank (Ohio) 1151d. 



U.S.R.S. N.B.A. 



INDEX 121 

NATIONAL BANK ACT— Continued 

Shares (continued) 

are not assessable to bank unless owned by it (Tex.) 1322c. 
Act does not limit mode of state tax on shares (111.) 193d. 
Receiver not liable for tax on valueless shares (Wash.) 1385d. 
Tax on national bank shares is on bank only in form (N. J.) 847a. 

State Laws 

apply to national bank stock (N. J.) 826b, (N. Y.) lOOld. 

Statute imposing tax on bank presidents is invalid as to national 

banks (Ga.) 175a. 
Act of Mar. 15, 1867. Banks are taxable for township but not for 

municipal purposes (Ind.) 259c. 
Act of Mar. 4, 1873, making national banks taxable for municipal 

purposes, is constitutional (Ind.) 260c. 
Act of 1863, ch. 153. Shares may be taxed in manner prescribed 

(la.) 285d. 
X. S., ch. 6, sec. 5. State can tax shares (Me.) 478d. 
Act of 1867, ch. 126, in so far as bank was taxed for use of town 

where stockholders were, was void (Me.) 478a. 
Stock of bank in Massachusetts is subject to inheritance tax there, 

though tax on same stock has been paid in state of testator's domi- 

cU (Mass.) 594a. 
Pub. St., ch. 11, sec. 72. List of shareholders for tax lists may be filed 

by bank (Mass.) 585a. Banks are to be taxed by states only in 

accordance with act (Mich.) 610d, (Nev.) 808b. 
Act of 1867, Act No. 122, taxing national banks, is unconstitutional 

(Mich.) 606a. 
Act of 1864, Revenue Law, is in accordance with National Bank Act 

(Mo.) 705b, and is not objectionable because it does not prohibit 

greater tax on national than on state banks, or that two state 

banks are exempt under charters (id.). 
Act of 1859, ch. 302. Commissioners have power to tax owners of 

shares (N. Y.) 1025d. 
Act of 1865, ch. 97, p. 160, sec. 10, assessing shareholder, is invalid as 

discriminating (N. Y.) 941b. 
Act of 1863, p. 435. National banks should be taxed the same as state 

banks (N. Y.) 941b. 
Revenue Law of 1874, taxing shares, applies to resident and non- 
resident holders (N. C.) lllOe. 
Act of 1867, Apr. 12, and 1868, Apr. 2. National bank stock is tax- 
able (Pa.) 1201d. 
National bank stock is not taxable under Revenue Law (Tenn.) 1293a.. 
Code, sec. 541, is void as to taxing national banks (id.). 
Code, sec. 541, "All stock" embraces shares (id.). 
State Statute need not embrace restrictions (Tex.) 1325a. 
Act of Congress need not be recited in taxation statute (Tex.) 1321c. 
Act 0/1879, R. S. Real estate is not taxable (Tex.) 1325a. 
Act of 1868, ch. 36. Legislature can pass law to reassess shares oil 

wMch tax is unpaid (Wis.) 1406a. 

Taxable 

shares are taxable where hank is located (Ala.) 29a, (111.) 193d, (Ind.) 
259b, (Me.) 478a, (Mass.) 567a, regardless of stockholder's resi- 
dence (lU.) 195b, 199d, (N.J.) 844d, (N. C.) lllOd. —by munici- 
pality (id.). — in town of owner (Vt.) 1355c. —either where bank 
is or where owner resides, as law may direct (N. C.) 1112a. — to 
holders if resident, to bank, if holders are non-resident (N. J.) 845d. 

Non-resident shareholder not Uable for village tax where bank is located 
(Mich.) 608d. 

Banking house is taxable where situated and is not included in value of 
stock (N. J.) 844a. 

Territories 

can tax shares (Idaho) 179d, (Mont.) 768a, (Utah) 1341c. 

Valuation 

Real estate not included in valuation of capital stock (Ind.) 271b. 

Taxable value is market value (Mass.) 585a. 

Shares to be taxed at real not market value (N. J.) 847b. 

5220 Liquidation 

Insolvent bank can sue and be sued (Wis.) 14.25a. 



122 BANKS AND BANKING 



NATIONAL BANK ACT— Continued 
U.S.R.S. N.B.A. 
5228 Default in Paying Circiilating Notes 

Section refers to assets of bank, not to property of a customer (La.) 



5234 50 Receiver 

and bank are proper parties in action to recover special deposit (la.) 
285c. 

is proper party to sue notwithstanding Code, sec. 449 (N. Y.) 1031d. 

appointed under the Act is not a foreign receiver (id.), and may enforce 
stockholder's liability in courts of any state (id.)._ 

Certificate of comptroller \s sufficient evidence of appointment (N. Y.) 
966c. 

Court can establish trust against receiver for security in his hands 
(Mo.) 734c. 

Transfer of assets by depositors pending appointment of receiver pro- 
hibited (Pa.) 1197c. 

-5236 50 Dividends 

Lien under N. Y. Bank Law 1892, sec. 130, not antagonistic (N. Y.) 
1046d. 



5236 50 

5242 



50 ) 

go f Preferences (see also below, sec. 52) 

Sections apply only to voluntary preferences made to prevent ratable 

distribution of assets (N. Y.) 1055c. 
Sections do not destroy preference acquired, under Laws of 1892, ch. 

689, sec. 130, by savings bank depositing with national bank (id.). 

-5239 53 Penalty for Violating Provisions 

Action under this section refers to forfeiture of franchise (N. Y.) 1002a, 
and does not affect right of stockholders to sue directors (id.). 

-5242 52 Insolvency and Preferences 

Section applies to solvent or insolvent banks (N. Y.) 1099a. 

Section does not apply to non-resident corporation (N. Y.) 972c. — to 

proceeds of drafts fraudulently accepted for collection (N. Y.) 1016c. 

—to property in possession of but not claimed by receiver (N. Y.) 

1015b. 
Notes given for specific purpose which failed are not assets (Ala.) 34b. 
County funds in bank may be set off against county warrant held by 

receiver (Mont.) 768c. 
Receiver is not protected against sheriff's requisition on property not 

owned by bank (N. Y.) 1020b. 
Section is constitutional (N. Y.) 1004b. 
Object of section is to prevent discrimination among creditors (S. C.) 

1268b. 
Presumption of insolvency follows failure to do business for several 

weeks (N. Y.) 1006a. 
What constitutes insolvency (N. Y.) 1005a. 
Allowance of valid setoff not a preference (Ohio) 1160c. 
Lien given to savings bank by Banking Law of 1892, sec. 130, not 

antagonistic to pro rata distribution (N. Y.) 1046d. 
State court cannot enjoin national bank (Mass.) 587a. 

Attachment 

after insolvency is prohibited (N. Y.) 1006a. 

against Pennsylvania bank will not issue from New York court before 
final judgment, though it has property in New York (N. Y.) 979a. 

before final judgment c&nnot issue against national bank (Cal.) 95a, 
(Minn.) 640c. 

is invalid against bank in hands of examiner and not made valid by 
subsequent acquisition of further capital (N. Y.) 1008b. 

not prohibited when bank is merely garnishee ( Pa. ) 1245a. 

Liett of attaching creditor is subordinate to that of Federal Govern- 
ment; and bank's receiver is entitled to its assets (La.) 430c. 

Service of writ is an attachment against property and is void (Yt.) 

1361b. 
Where it prevents paym.ent, no interest can be had on reduction of stock 
(Me.) 488e. 

Section not repealed by 

U. S. R. S. Aug. 13, 1888 (Mass.) 587a. 

U. S. R. S. July 12, 1882, sec. 4 (Mass.) 587a, (N. Y.) 1008b, 1099a. 

U. S. R. S. Mar. 3, 1884, sec. 4 (Mass.) 587a. 



INDEX 123 



NATIONAL BANK ACT— Continued 
U.S.R.S. N.B.A. 

57 Jurisdiction 

Attachment against bank is void on warrant from state court (Md.) 

507a. 
Bank is suable only in district where located (Mass.) 550c. 
Section does not modify sec. 8 (N. Y.) 940c. 

Jurisdiction of state courts not prohibited or restricted (N. Y.) 961a, 
(Vt.) 1357a. 

HTATIOIVAL BAIVKS 

(See Banks, National Bank Act, Powers op Banks) 

NEOOTIABLE PAPER 

; (See Bank Bills, Checks, Dkafts, Promissory Notes) 

NOTARY 

(See Public Officers) 

NOTARY PUBLIC 

(See Collections, Public Officers) 

NOTICE 

Actual 

Notice to bank of judgment against it is notice to stockholders (Ga.) 156c. 
Published probate citation not notice to savings bank of depositor's death. (Mass.) 
563c. 

Constructive 

One dealing with bank is presumed to know cashier has no authority to certify check, 

if there are no funds (N. Y.) 946b. 
Cashier's participation in loan secured by pledge of bank stock, notice to bank (Ala.) 34c. 
Such knowledge as would put a reasonably prudent man on inquiry, charges a creditor 

with notice of illegality of bonds (la.) 306a. 
Some of same persons controlling company accepting note and bank discounting it, 

knowledge of company as to its character is imputable to bank (Mo.) 699d. 

Dishonor— see Checks, Drafts, Promissory Notes 

Effect 

Notice to a bank extends to every part of its securities (Md.) 512a. — (?/" oiBcers' acts, 
ratifies them (Minn.) 645a. 

IfOTICE OF DISHONOR 

(See Checks, Drafts, Promissory Notes) 

NOTICE or PROTEST 

(See Checks, Drafts, Promissory Notes) 

OFFICERS AND AGENTS 

Action 

Savings bank cannot recover on contract based on treasurer's repudiated act (Mass.) 583a. 

Appointment 

of collector is effected by entrusting one with collection (N. Y.) 919c. 
of notary need not be by deed (Md.) 492a. 

Authority 

of bank officer includes authority to do acts necessary to conduct of banking business 
(Pa.) 1186b; to do anything bank can do, where officer has entire control (N. D.) 
1131a; to take security for loan, without directors' vote (Cal.) 72b. —does not in- 
clude authority to misapply bank funds (Cal.) 74c; to discount at unlawful rate (Pa.) 
1189a; to extend time, in case of officer of collection bank, so as to prevent suit by 
; owner (Cal.) 71e. —to deliver paper is implied from power to indorse (Md.) 500b. 

—to release surety, upon substitution of other security, may be conferred by course of 



124 BANKS AND BANKING 



OFFICERS AND AGENTS— Continued 
Authority (continued) 

business (Mo.) 762d. — is proper subject of demand for proof by one about to loan to 
bank (Mo.) 757a. 

of agent of State Bank includes powers of sheriff in executing process for bank (Ala.) 
24a. — does not include authority to sell property levied upon after return day of 
writ of execution (id.). 

of bank attorney includes prima facie authority to transfer note (N. Y.) 920a. — does not 
include authority to execute injunction bond (La.) 428a; or to sell land held by bank 
under deed of trust (Ga.) 176b. 

of clerk, temporarily in charge of bank, does not include authority to pledge note (N. Y.) 
934a. 

of managing agent of banking partnership does not include authority to purchase goods 
(S. D.) 1274b. 

of secretary acting as general manager, includes, prima facie, authority to transfer check 
(Mo.) 747b. — does not include authority to bind savings bank by entries in pass- 
book (N. Y.) 1057b. — to receive money is not implied from other payments (id.). 

of secretary and treasurer of savings bank does not include authority to borrow money 
and pledge securities (N. J.) 839a. 

of teller does not include authority to certify checks (Mass.) 533d, though customary 
(id.) ; to release co-maker of note (111.) 191c; or, as to paying teller, to receive de- 
posits (D. C.) 132c. 

of treasurer includes power to indorse bank paper (Me.) 484c. — o/" co-operative bank 
does not include authority to accept orders, if statute provides for acceptance by 
president and secretary (Mass.) 593d. 

of savings bank treasurer is more limited than that of cashier (Mass.) 568d. —includes 
authority to indorse bank paper (Me.) 481b {contra, though authorized to discharge 
corporate obligations (Mass.) 563b] ; to pay depositors, only from cash on hand, except 
with permission of board of investment (Mass.) 570c; to take possession of mortgaged 
property for bank (Me.) 489a; to foreclose mortgage (Me.) 489a, (Mass.) 587e; to 
perform acts incidental to foreclosure (Mass.) 587e. — does not include authority to 
bind bank in general administration of affairs (Mass.) 568d; to obtain loan, though 
authorized to discharge obligations (Mass.) 568d; to make notes and transfer bonds 
as security (N. J.) 840a ; to transfer notes (Mass.) 569b; to assign securities, (Mass.) 
570c, generally, though specially empowered to transfer certain securities (id.) ; to 
bind bank by book not representing deposit of person named (Mass.) 572a; to give 
release (Mass.) 538d. 

of vice-president does not include authority to make general assignment (Utah.) 1344b. 

Bank 

is 5o«»rf by agent's authorized acts, though ultra vires (Pa.) 1191d, or unlawful (Mass.) 
519d. — by teller's acts within apparent scope of authority (N. Y.) 966e, (Tex.) 
1327a. —by acts of one held out as having authority (Cal.) 85a, (Colo.) 100b. —by 
knowledge of agent, acquired in course of duty, (Mo.) 766a, or before employment, if 
fact material and in agent's mind when acting for bank (Me.) 485a; of teller, as to 
nature of deposit (N. Y.) 1035b, credit of deposit (Mo.) 732d, or his own fraud in 
procuring bank bills deposited by him with bank's cash (Mass.) 543b. — by notice to 
agent (Ga.) 140d; to acting officer (Pa.) 1182a; to teller (Md.) 511a. —by agent's 
contract ; if within scope of authority, (Minn.) 633d, and parol (111.) 216a; though no 
formal resolution defines powers (N. Y.) 882a. — by teller's receipt for package of 
money addressed to cashier (N. Y.) 1018c. — by agent's indorsement (Ind.) 277b. 
— fiy tender of delivery of package of money to agent (Wis.) 1397c. — by special de- 
posit with officer (Ga.) 159a. — i^j/ demand for specie payment, only if made to officer 
authorized to direct payment (Ky.) 351a. ^-by officer's admission in official capacity 
(Me.) 470d. — by representations of vice-president as to bank's condition (Mo.) 723c; 
of officer to stockholder, in case of national bank (Neb.) 803a. — by forged record of 
officer's authority to sell mortgage, as against one purchasing in reliance thereon 
(Mass.) 577c. — by false certification of vote by recording officer (Mass.) 572d. 

is not bound by acts of subordinate officer after business hours (D. C.) 132c. — by knowl- 
edge of officer not acting for bank (Mo.) 740a, (N. Y.) 1049a, (S. D.) 1279d, (Va.) 
1369d, (Wis.) 1416b; of clerk, not entrusted with collection of note, as to indorser's 
residence (Miss.) 680d; of officers of its branch, as to cashier's defalcation (Ky.) 348c. 
— by notice to officer not acting for bank (Me.) 485a; to treasurer after resignation 
(Kan.) 322d; to messenger, concerning partnership dissolution (Ga.) 172b. — by un- 
authorized contract of officers for building loan (Mass.) 595a; of savings bank clerk, 
creating condition not noted in passbook for withdrawal of deposit (N. Y.) 1014b. 
. — by clerk's unauthorized act in crediting depositor (Ky.) 371d; or in making charge 
against depositor's account (Pa.) 1230c. —by bank bills signed by vice-president and 
assistant cashier where there are president and cashier (Ga.) 153a. — dj/ deed, bearing 
corporate seal, executed by vice-president without authority (Mo.) 758a. —by pay- 
ment to secretary, if savings bank (N. Y.) 1057b. — by statement of teller to pur- 
chaser of bonds sold by bank on commission (Md.) 507b; of teller that indorsement is 
genuine (Mo.) 715a; of treasurer that note is paid, as against one to whom he was 
under contract to make payment to bank (Mass.) 565c; of bookkeeper that check will 



INDEX 125 



OFFICERS AND AGENTS— Continued 
Bank (continued) 

be good "when we resume," so as to compel acceptance upon presentment (Wis.) 
14,07a. 

is liable for act- of officer within scope of authority (Md.) 495b, (N. Y.) 882d. —on note 
signed by clerk with apparent authority (111.) 209a; or fraudulently issued in bank's 
name by treasurer (Pa.) 1241b. — to bona fide holder, on certification, by teller hav- 
ing authority to certify only when in funds, though made in violation of instructions 
(N. Y.) 932b, or when without funds (N. Y.) 907d, 911a. —for payment to treasurer 
in line of duty, induced by his concealment of facts (R. I.) 1256c. —for payment to 
stranger, on savings bank passbook, by teller knowing depositor (N. Y.) 1073c. —for 
teller's mistake in paying to wrong person (Md.) 511a; or in misapplying specific 
deposit (Mass.) 544b. ^br teller's negligent assurance that bill, altered after certifica- 
tion, is good (N. Y.) 1029b. —for attorney's failure to present and give notice of dis- 
honor of collection paper, though he be notary (Kan.) 317d. — /o penalty for violating 
charter, if officers with discretionary authority make ultra vires loan (N. Y.) 867d. . 

is not liable for ultra vires receipt of special deposit by treasurer's clerk (N. H.) 818b. 
— to gratuitous bailor, for failure to examine teller's accounts (Pa.) 1203e. —;/or un- 
authorized accusation by officer (La.) 398a. ^^or teller's theft, in absence of notice of 
his dishonesty (Pa.) 1203c. —criminally for teller's acts, where his authority has law- 
ful scope (N. Y.) 901a. 

is served ivith process through managing agent, while without officers during liquidation 
(Wis.) 1404a. 

Bond 

to secure deposit of public funds may be that of chief bank officer, acting without board 
of directors (N. Y.) 923b. 

needs no formal approval by trustees, in case of bank treasurer (Mass.) 591a. 

Breach o/" coMofi/wM of secretary's bond is effected only by default as to bank funds (Cal.) 
72d. — of teller's bond is set up by allegation of money received and not accounted 
for (Mass.) 523d. — of actuary's bond is not effected, as to sureties, by default as 
bookkeeper (N. Y.) 1004c. — o/" bookkeeper's bond is effected by embezzlement (N. Y.) 
921c; or by default as cashier, if bond covers all duties required of obligor (Ga.) 137c. 

Cashier — see Cashier 

Compensation 

is not affected by Act of 1843 (Ark.) 45b. 

may be fixed by directors (Ark.) 45b. — by legislature alone, in case of special compensa- 
tion, where statute fixes salary (Ala.) 16a. 

Payment cannot be denied to attorney for national bank because suit unsuccessful (Okla.) 
1164a; or if his services have been accepted (id.). — in bank's depreciated paper is 
improper, where statute requires specie (Ark.) 45b. — cannot be enforced by mandamus 
after repeal of statute fixing salaries of State Bank officers (Ark.) 48a. 

Corporations other than banks — see Corporations 

■Definition 

Bank officers are not agents and clerks within meaning of R. S., ch. 133, sec. 10 (Mass.) 

533a. 
Clerk is not equivalent to officer, agent, or servant, within meaning of statute creating 

felony (Tenn.) 1287a. 

Directors — see Directors 

Election 

requires majority vote of trustees present (N. Y.) 972d. 

is not invalidated by failure to take qualifying oath (La.) 377b. 

Revocation of proxy,- attributable to honest motive, will be sustained (N. Y.) 867c. 

Estoppel 

Bank is estopped, as against innocent depositor, to recover overdrafts, by latter's agent, 
on fictitious credits by bank's bookkeeper (N. Y.) 928c. — as against bona fide holder, 
by statement of assistant cashier that depositor's check will be paid (N. Y.) 950b. 
— by receiving proceeds of sale, to deny officers' authority to sell or to make represen- 
tations in connection with sale (Mo.) 748c. 

Bank is not estopped, by teller's certification by mistake, to recover money paid from one 
whose position has not been altered (N. Y.) 1032b. 

Teller is estopped to deny certification admitted by him (N. Y.) 959a. 

Evidence 

Admissions by teller are admissible against him in action on bond (Mo.) 708c. 

Parol evidence is admissible to show for what bank one signs "as manager" (S. C.) 
1270b. — to prove rescission by officers of directors' order (Md.) 492c. 

Presumption exists that bank has knowledge of officers' contract made in banking hours 
(N. Y.) 951c. —does not exist that vice-president is stockholder (Fla.) 137a. —of 
validity of deed, executfid by vice-president under corporate seal, is overcome by proof 



126 BANKS AND BANKING 



OFFICERS AND AGENTS— Continued 
Evidence (continued) 

of no authority (Mo.) 758a. — of oiEcer's authority is not overcome by proof of 
want of knowledge (N. Y. ) 1077c. 

Proof of teller's authority is made by showing prior authorized performance of similar 
acts (N. Y.) 992c. — o/" savings bank treasurer's authority to assign securities is not 
made by showing prior assignment by him (Mass.) 570c. —<3/' bank's authorization 
of suit is made by indorsement of name of bank's attorney on writ and recital in 
rtcord that "plaintiff by his attorney comes" (Mich.) 601b. — of bank's consent to 
suit may be made by inference from acts of officers (Me.) 467c. — o/" knowledge that 
certificate issued is conclusively made by showing indorsement by bank officer (Cal.) 
83a. — of officers' knowledge of insolvency is not made by showing that superintendent 
closed bank (N. Y.) 1074a. —o/" bank's lack of notice is not made by showing that 
one officer was ignorant of fraud (la.) 302a. —of correctness of entry cannot be 
made by showing that clerk is careful (Minn.) 642b. —o/" bank's contract is prima 
facie made by official signatures of officers (N. Y.) 882d. 

Statements oA officer as to past transactions are inadmissible against bank (N. Y.) 1049a. 
— o/" bookkeeper in ordinary course of business are admissible against bank (Mich.) 
615a. 
Witness. Teller is competent witness in suit by bank (Vt.) 1349b; may be excused 
from testifying on ground that he might be made liable to forfeiture for discounting 
bill previously presented and refused (N. Y.) 885c. Clerk may prove overdraft, though 
liable if bank fail to recover (La.) 378a; may testify from his own entries, though 
he has no independent recollection of transactions (Wis.) 1412a. 

Liability of officers 

includes liability to account in equity for fund subject to bank debts (Ga.) 161c. — io ac- 
count for profits of land transaction conducted with bank money (Tenn.) 1302a. —for 
use of funds for personal advantage (Cal.) 67a. -for abuse of power (N. Y.) 884d. 
— to creditors for mismanagement; if willful (Tenn.) 1315a; if loss occurred during 
tenure of office (Wis.) 1427b; only if fraudulent, (Mo.) 723b, even under Constitution, 
art. 12, sec. 27 (Mo.) 716c. —/or fraud (Tenn.) 1315a; in permitting overdraft on 
savings bank (Cal.) 68c; in issuing false certificate of authority and borrowing thereon 
(Mo.) 757a; in falsely representing capital as paid-up, to induce deposits (Neb.) 781b. 
-for embezzlement in taking funds for personal use on worthless notes (Cal.) 80c. 
—for making false report to commissioner, though without intent to injure (Kan.) 
338a. 

does not include liability for fraud, to depositor, after assignment, in case of savings 
bank (N. H.) 817d. — ai for fraud, for publishing report in which assets and liabilities 
are equally inflated (Neb.) 805d. ^-to convey' to receiver, without receiving indem- 
nity, property purchased with bank funds to protect officer giving personal bond to 
secure deposit of public money (N. Y.) 923b. —after bank's insolvency, on guaranty 
of bank's note, until maturity (Kan.) 331a. 

Officers of de facto bank are liable for violations of banking law (Kan.) 338a. 

Trustees of savings bank are liable for failure to use ordinary care (N. Y.) 994d; for 
misfeasance or non-feasance (id.). — are not liable under Laws 1875, ch. 371, sec. 33,. 
for declaring dividend less in amount than interest, though expenses greater than in- 
come (N. Y.) 1000a; or to receiver for loss on bond purchase, if payment of deficit 
as required by superintendent of banking has been made (N. Y.) 1000c. 

Treasurer of savings bank is liable for taking mortgage contrary to law (N. J.) 834b. 

Teller is liable to bank for assisting embezzlement by cashier (N. J.) 837a. 

Injunction against officers defrauding stockholders, which merely restrains holding of 
election, may be dissolved for insufficiency (la.) 286b. 

Managers — see Directors 

Notary — see Collections, Public Officers 

Notice 

of lack of authority is given where assistant cashier writes "accepted" on check contrary 
to usage (N. Y.) 966b. 

of teller's authority is not given by knowledge of his speculations (Pa.) 1203c. 

Bank is not charged with notice of acts of officers in their own affairs (Minn.) 656b. 

Officer is charged with notice of facts known to bank (N. J.) 833a. — of bank's insol- 
vency (Md.) 515c. 

Lack of notice of dissolution gives one dealing with clerk of banking firm right to hold 
retired partner (S. D.) 1282a. 

Ownership of property in agent's hands 

Teller, borrowing money and putting it in bank drawer, holds it as bank money (Mass.) 
547b. 

President— see President 

Questions of law and fact 

Jury is not permitted to find knowledge by officers of insolvency, in absence of affirji- 
ative proof (N. Y.) 1052a. 



INDEX 12T 



OFFICERS AND AGENTS— Continued 
Questions of law and fact (continued) 

Jury must determine authority of assistant cashier and ratification of his acts (Va.) 
1234b. 

Ratification 

is effected by consent (N. Y.) 919c. — by long acquiescence (Pa.) 1213a. — by receiving 
benefits (Minn.) 647a. — if bank has constructive notice (Minn.) 645a. — by suit 
on note given as part of transaction (N. Y.) 882a. — as to forged certification pur- 
porting to be made by teller, by teller's admission that check is good (N. Y.) 959a. 
— as to pledge of stock by savings bank treasurer, by bank's aifirming validity of 
transfer by which pledge was accomplished (Mass.) 573b. — as to deed by savings 
bank treasurer, by bank accepting deed from his grantee (Mass.) 587e. — a^ to teller's- 
receipt of note, by bank protesting it (D. C.) 132b. 

is not effected if bank has no knowledge of facts (Mass.) 538d. — necessarily as to whole 
transaction by bank's adoption of accommodation note procured at treasurer's request 
(Mass.) 543a. — as to details of teller's agreement with president, by directors' knowl- 
edge of teller's employment (N. Y.) 960b. 

after suit brought, of unauthorized assignment of claim to plaintiff by bank attorney, 
is insufiicient (Cal.) 91a. 

Relation between bank and officers 

Officers are agents of bank (N. Y.) 884d. —do not become trustees by assignment of 

insolvent bank (Pa.) ViV2,&.. —are not preferred creditors (Neb.) 787d. 
Trustees of savings bank represent corporation in making investments and managing 

affairs (Me.) 483c. — o/" national bank act in fiduciary capacity in transactions with 

customers (D. C.) 132a. 
Teller, not bank, is agent of drawer, entrusting him with money to meet draft payable 

at bank (N. Y.) 892b. 
Vice-President, also manager of mill company, is not bank's agent in acts as manager 

(Tex.) 1331a. 

Tenure of office 

Term of office of clerks is not affected by length of directors' terms (Ky.) 373b, (La.) 
412c. —o/" treasurer, under by-law making it "during pleasure of board," is fixed by 
board electing him for one year (N. Y.) 1070a. 

Discharge of teller under National Banking Law is permissible at pleasure of bank (N. 
Y.) 960b. — is not illegal because not contemporaneous with fault (id.), or because 
reason not stated (id.), —for cause, though employment was for definite term, de- 
prives him of right to recover pro rata compensation (id.) . 

One holding offices of treasurer in one bank and cashier in another with which former 
makes all its deposits, may be treated by depositor with former as holding either 
office (N. Y.) 1007c. 

ORDEKS OK BAJfKS 

Construction (see Checks) 

Order to pay fund due on contract is an assignment of fund (Wis.) 1420b. —part of 
discounted note on another should be obeyed or amount credited to maker and notice 
given him (Mo.) 727c. 

Order to exchange own check for one remitted does not authorize sending another check 
(Mass.) 552a. 

Order to apply proceeds of county bonds on old bonds must be obeyed (Mo.) 754b. 

Order on savings bank with words "book must accompany order" is not negotiable with- 
out book (Me.) 489d. 

Oral order to cashier to credit a. deposit to another is valid without a check (Mo.) 732a. 

Depositor 

bound by order cashed by bank, though payee misappropriated funds (R. I.) 1256b. 
is owner of draft for amount of deposit, sent by mail properly addressed, at his request 

(Wis.) 1409c. 
may hold bank for crediting amount to one as an individual instead of trustee as directed 

(Mo.) 732d. 

ORGANIZATION 

Protest— see Checks, Drafts, Promissory Notes 

Capital 

named in certificate filed by bank must have been subscribed but need not have been 
paid at time of filing (N. Y.) 888c. 

Certificate 

of comptroller removes objection to certificate of organization of national bank (Mich.) 
g05e_ — of currency, authorizing commencement of business, need not be published as 
condition precedent to right of national bank to commence business (N. Y.) 956a. 

of auditor general, marks beginning of national bank (Pa.) 1202c. 

of stock, need not be issued to validate original organization (Tenn.) 1309b. 



128 BANKS AND BANKING 



ORGANIZATION— Continued 
Certificate (continued) 

of bank is prima facie evidence of facts therein recited (N. Y.) 888c. 

of organization in form of copy, certified by comptroller, is admissible (Mass.) 557a. 

Charter (see Charter) 

of bank being produced, the acceptance an organization are to be inferred from acts 
and exercise of privileges (Vt.) 1348a. 

where necessary to valid incorporation, must be proved in any action where bank's organ- 
ization is an essential element, though bank is not a defendant (Pa.) 1194a. 

Corporate existence (see Powers op Banks and Banks) 

may be shown prima facie, by proof of act of incorporation and of election of officers 
(N. Y.) 858a. —by articles of incorporation, acted under (Neb.) 787b. —by printed 
pamphlet of state laws showing incorporation (La.) 377b. 

cannot be denied by one contracting with bank (N. Y.) 888c, (Ind.) 250b. 

of bank, where not denied, need not be proved (N. Y.) 906b. —created by territory may 
be confirmed by state (Ind.) 250b. —zj condition precedent to bank's acting as prin- 
cipal or having agent (Utah) 1343a. —may be assumed for benefit of its creditors, 
in receiver's action (N. C.) 1115b. 

Defects 

consisting of mere irregularity will not deprive bank officers and stockholders of charter 
benefits, nor make them privately responsible (Ohio) 1141b, —will not render stock- 
holders liable for failure to incorporate, where bank complies substantially with incor- 
porating act (Neb.) 781b. — in bank's certificate of incorporation, may be remedied 
by passage of special act by legislature (N. Y.) 897a. 

due to delay in organizing beyond statutory period can be taken advantage of only in 
direct proceeding by state (N. C.) 1123d. 

See also Banks, De Facto. 

Evidence 

of organization of national bank is comptroller's certificate (111.) 200b, (Mich.) 608b. 
— in criminal action, is book of bank records (Mass.) 594b. 

of incorporation w the charter and conduct of the business (Mass.) 532b. — certificate of 
comptroller (S. D.) 1283a. — evidence of organization (Pa.) 1228c. 

of active existence of bank is evidence of business dealings with it (La.) 394b. 

of legal existence as against third parties, is repeated legislative recognition as an ex- 
isting corporation (Tenn.) 1286c. — of foreign corporation is copy of charter with 
proof of exercise (Ala.) 2d. — is, prima facie, charter and acts of user thereunder (Mo.) 
704d. — is not indorsement of bank bill by bank (111.) 180c. 

of performance of conditions precedent is, prima facie, user under charter (Tenn.) 1286c. 

Immaterial variance as to name of bank warrants inference of identity (Mass.) 555d. 

Fraud 

in organization cannot be set up by organizer against creditors (Conn.) 117a. 
in certificate of stock makes signing officer liable (Utah) 1343c. 

Illegal Organization 

makes officers of bank and stockholders, trustees and cestuis (Ind.) 262d. 

Officers of bank illegally organized may be proceeded against by one claiming interest 

filing information in quo warranto to distribute assets (Ind.) 262d. 
Bank not intended to be organized under any statute is illegal (Ind.) 252c. 

Incorporation (see Banks) 

requires no particular form (Ark.) 43c. 

may be by implication (Ark.) 43c. 

m.ust be proved by bank, on general issue (N. Y.) 854c. 

may be shown, as to national bank, by certificate of comptroller (N. Y.) 969c, or as 

to state bank by the printed statutes of the state (Del.) 128c. 
ji /rs^MWZiffl?, where bank has fulfilled all conditions of incorporation (Mich.) 601b. 
of national bank cannot be questioned collaterally by stockholders in an action to enforce 

their liability (Neb.) 801a. 
makes bank a corporation on filing and recording of certificate (N. J.) 828b. 
of bank a public act (S. C.) 1262d. 

absence of, prevents bank from being a legal entity (Neb.) 804a, 804d. 
Omission to organize under charter is not ground for forfeiture for non-user (N. C. ) 1111c. 
Receipt of notice is not notice to corporation unless incorporators have been made organs 

of communication (Pa.) 1184a. 
One who directly or indirectly corporates is liable (Minn.) 663d. 

Officer 

la^who assumes presidency of bank being organized, is liable to depositor to see that organ- 
(gi*j ization is legal and effective (N. C.) 1114a. 



Offices 

^J^need not be leased for national bank (111.) 230d. 



INDEX 129 

ORGANIZATION— Continued 
Organizers 

Failure to file certificate of incorporation leaves organizers liable as partners (Kan.) 
327a. — to proceed with organization does not give organizers vested right to issue 
notes to circulate as money (Tex.) 1321b. 

organizing under provisions of statute, must abide by terms thereof (Okla.) 1165c. 

Presumption (see Banks) 

is that bank has organized under statute (Ind.) 272d. 

Prior Acts 

of national bank consisting of business done before date of its certificate do not affect 

its rights as indorsee of note (Mich.) 605e. 
of agents of association, before incorporation, do not bind association (Ind.) 252b. 

Reorganization (see Banks) 

of state bank as national bank leaves bank liable for tax up to surrender of charter 
(Pa.) 1202c. — without giving of statutory notice, compels taking in of special as well 
as general stockholders (Conn.) 118c. —subsequently does not defeat remedy (Pa.) 
1201b. 

entitles stockholders to joint proportion of assets (Conn.) llSb. — creditor of bank, 
reorganized by reduction without his knowledge, to recover in full (Minn.) 663a. 

does not entitle directors to cancel or forfeit stock of old stockholders without their 
consent (Tex.) 1330c. —state under Act of 1863, to representation in new bank 
(Conn.) 118b. — creditors of original banking partnership to share in assets of new 
firm (Pa.) 1237c. 

of banking partnership does not leave new firm bound, by original articles of association, 
to payment of antecedent debt (Pa.) 1237c. 

under national banking law, does not change assets or liabilities of bank (Mo.) 707b. 
— state bank, having liquidated before organization of national bank with same stock- 
holders and officers, is not continued by latter (Neb.) 792a. 
Surrender of worthless stock of old corporation is not a defense of payment, in action by 
assignee of new corporation to recover stock subscriptions of directors (Mo.) 739b. 

Statutes 

incorporating banking corporation, may be valid in part and void 'in part, and the void 

part may be stricken out without affecting validity of act (Ind.) 252b. 
Savings bank allowed, under statute, to resume business on reduced basis (N. Y.) 1042b. 
Banking Law. New corporations cannot be organized thereunder, when its provisions 

are at variance with subsequently enacted constitution (Ohio) il44d. 
Free Banking Law. Conditions of organization thereunder are conditions precedent to 

corporate existence (La.) 439b. Bank failing to comply therewith cannot maintain 

action as corporation (La.) 439b. 
General Incorporation Act does not authorize organization of banks (La.) 439b. 
Stock subscription essential where Congress! granted privilege of organizing, officers to 

be elected when stock subscribed (Tex.) 1321a. 

OVERDRAFT 

(See Deposit) 

PARTNERSHIP 

Authority 

One partner can bind firm by drawing and negotiating bill (N. Y.) 885d. — cannot bind 
firm by indorsing firm name to secure private debt (Pa.) 1239b. —purchasing stock 
firom insolvent bank for firm, is not entitled to credit for payment (Pa.) 1228a. 

Fraudulent release by one partner of a national bank for taking usury, is binding on 
the firm (Tex.) 1325c. 

Knowledge of ecoA. fraud of one partner is chargeable lo firm (Pa.) 1205b. 

Indorsement of firm name binds firm (Ky.) 345c. —on accommodation paper, no implied 
authority (Pa.) 1170d. — though unauthorized does not affect innocent holder (Ky.) 
344a. — under authority to " use my name as one of firm" is proper on renewal notes 
(Mich.) 620c. 

Personal debt for which firm note given, bank cannot recover on note if it has notice 
(Mass.) 540c, and firm is not liable (Mass.) 524e. —not payable from firm deposit 
(Minn.) 636c, or firom deposit of other member, on check showing the personal debt 
(Miss.) 689e. 

Banking Firm 

by private agreement of its members cannot discharge Uabihty on certificate of deposit 

(lU.) 197d. 
is constituted by several owners of unincorporated bank (la.) 296d. 
unincorporated, may be sued as partners (Kan.) 327b. 
insolvent, fraudulent members are liable for debts (Mich.) 598b. 



130 BANKS AND BANKING 



PARTNERSHIP— Continued 
Banking Firm (continued) 

is not released by omission of "cashier'' to a signature on a certificate of deposit (Kan.) 

314d. 
M tides may be waived by conduct of members (Miss.) 668b. 
cannot be proved by an unauthorized newspaper article (Okla.) 1164c. 
taking new partners does not work such a purchase of the commercial paper of the old 

firm as wiU relieve it firom equities (Minn.) 647a. 
One allowing his name to be used as member cannot deny partnership (Mich.) 616a. 
One member may make assignment, after other has absconded (Wis.) 1420a. 

Course of Dealing 

Giving of partnership checks for individual debts is not such a course of dealing as justifies 
assumption that note given for like purpose, is valid (Ga.) 178b. 

Deposits 

Bank cannot pay individual debt from (Minn.) 636c. 

Dissolution 

of drawee, known by collecting bank, does not aflfect relations of drawer and drawee 

(Colo.) 104a. 
\pf guarantors, with notice to bank, absolves them from liability for future advances, and 

letter from one partner stating that he thought the guarantee good, creates no new 

liability (N. Y.) 979c. 
occurs when bank ceases to do business for which it was organized (Mich.) 625d. 
Notice to messenger, who fails to communicate it, is not notice to bank (Ga.) 172b. 
Actual notice to bank is necessary to limit future transactions (N. Y.) 952c. 
Draft of firm is binding in absence of notice of (N. Y.) 953a. 
Mem,ber cannot bind firm after dissolution by renewal of firm note (N. Y.) 874b. 
Bank cannot apply firm's deposits, made after dissolution, to note of one member indorsed 

by the other (N. C.) 1126a. 
Bank cannot, after dissolution of a firm, use individual member's deposit for a firm 

check (N. C.) 1119a. 
Settlement on, partner cannot give firm note (Mich.) 625d. 
Settling partner as trustee for creditors and his deceased partner's estate, is entitled to 

firm deposits as against bank (N. C.) 1126a. 
Surviving partner cannot charge maker of check drawn after dissolution (Va.) 1377c. 
Retiting partner is liable to depositors unnotified, and has burden of proving notice 

(N. Y.) 976d, (Pa.) 1207a, (S. D.) 1283d, and is bound by cashier's or clerk's deal- 
ings with one not having notice (S. D.) 1282a. 

Drafts 

made for accommodation are binding in hands of bona fide holder (N. Y.) 953a. 

Evidence 

Partner not signing bond can testify (La.) 384a. 

Partner of unincorporated bank can testify for it (Miss.) 671a. 

Incoming Partner 

not liable for prior firm debts (Pa.) 1207a. 

Insolvency 

Bank not liable to receiver for funds collected for one partner before notice (Cal.) 86d. 

Liability 

as partners or members of joint stock association is not shown by alleging that defend- 
ants held and received dividends on stock issued by company not properly organized 
(N. Y.) 1031b. 

Collateral given to secure individual's claims is subject to his debts as a partner (Mass.) 
584c. 

Partner is protected by notice to bank not to pay checks of other partner (Mich.)617d. 

A partnership, members of which are officers of a bank, is not liable for a loan made 
with the bank by such members, without the knowledge of the other, for the purpose 
of furnishing their quota of the firm assets (Ga.) 172a. 

Firm is not liable to bank paying with knowledge an unauthorized check of one partner 
(Pa.) 1233a. 

Limited Partners 

are Uable as general partners for circulating illegal notes (Ala.) 18b. 

Question for jury 

A note made by one partner, and indorsed by the other and discounted for the firm, 
raises question whether credit was given to firm (Conn.) 123a. 



INDEX 131 



PAYOTESTT 

(See Dbposit) 
Accord and satisfaction 

not constituted by taking of bill, note or check, without more (Ala.) 37d. 

To Agent 

good, if agent is authorized, though payer is ignorant of agency (Ga.) 177b. — if agent 
has real or apparent authority or principal has apparently ratified payment (111.) 
209b. 

is at bank's pet il, if merely alleged agent (N. Y.) 1039a. 

Application 

Collections made by agent of insolvent collecting bank cannot be applied to debt of 
ba,nk (N. C.) 1119b, (Pa.) H93b, (Tex.) 1324b. 

Creditor is allowed reasonable time in which to elect to which of several debts he will 
apply payments (N. Y.) 970c. — having accepted money in discharge of a note, can- 
not divert it from note and apply it elsewhere (N. C.) 1105d. — bank discounting 
note, under instructions to pay half on another note, must do so, or credit the amount 
to maker (Mo.) 727c. 

Joint debts. Where payment on a consolidated note, representing debts of two persons, 
is made from estate of one, it must be applied to his debts (Mass.) 580c. Bank can- 
not set off amount voluntarily paid on firm note against collection made for one part- 
ner (Neb.) 778a. 

Partial payments on interest bearing debt apphed first to interest (La.) 421c.. — applied 
pro rata to principal and interest (la.) 290b. — applied to earliest item of debt 
(Ky.) 374b, (N. Y.) 1029a. 

Payments, not directed, may be applied to debts not secured (Conn.) 114a. — not 
actually applied, will be applied by law (N. Y.) 960a. — to bank, may be applied 
by cashier (Conn.) 114a. — on usurious notes, are applicable to principal and not 
to interest (Neb.) 771a, 777b, 779a, 784c. — on account on usurious contract will be 
applied to amount legally due, but usurious interest must be regarded as actually 
paid, when notes are specifically given for it (Tex.) 1325d. — by indorser for release, 
must be applied to notes (Mass.) 526c. 

Bank Bills 

Agent has no authority to accept payment of a note in any other currency than that 

in which it is payable (Mo.) 697b. 
Costs cannot be paid in bills of no value (Vt.) 1348d. 
Counterfeit bill does not discharge debt (Mo.) 717a, (N. Y.) 950d. 
Equitable assignees of bank bound to take its issue in payment of notes, also bound to 

accept it (Miss.) 683d. 
Execution surplus must be paid in specie (Miss.) 673a. 
Judgment discharged by bank notes only by express authority of creditor (Miss. ) 669b ; 

and he may prescribe terms (N. J.) 821b. — in favor of bank discharged in notes 

of bank (111.) 182b, (Ky.) 350b, (Miss.) 678b. 
Redemption not according to law, where only one bill at a time was redeemed or bags 

of coin tendered with no recourse for error (Mich.) 603c. 

Certificate of Deposit 

accepted, by custom, in payment of mortgage, discharges mortgage (la.) 291b. — by 
makers of a note, discounted by a bank, instead of money, will not discharge them, 
fi-om liability (Miss.) 666b. 

payable in currency, not payable in uncurrent bank bills (N. Y.) 929d. 

Check 

is not legal tender (Pa.) 1221b. 

is mere conditional payment (Colo.) lOle, (Ind.) 271a, 276c, (W. Va.) 1392a, but 
whether received as absolute or conditional payment is question for jury (Tenn.), 
1295c. 

■must be accepted to constitute payment (Cal.) 72a, (lU.) 245b, and acceptance must be 
so intended (Me.) 479c. 

accepted by bank, renders bank liable for loss (111.) 226a, (Pa.) 1242a. 

operates as payment after indorsement and delivery (Ark.) 60a, (la.) 297b. — (t/" draft 
only if actually paid (Ala. ) 40b, (111.) 190a, (N. Y.) 942c, 943b, 949d, 950a. 

does not operate as paym.ent, if drawn against no funds (Mass.) 562a. — ?/" receipt is. 
given before presentment and there is no laches on part of holder (Mass.) 535b. — ij 
given by cashier as assignee and entered on books, no money passing (N. Y.) 1076d. 

payable in exchange, does not set apart fund to payee (111.) 203a. — in currency, de- 
preciation while held by indorsee is immaterial as to drawer (Mo.) 700d. 

lost by creditor and subsequently forged does not discharge debtor (N. Y.) 994c. 

taken from auctioneer for procieeds of sale is not giving time to debt, nor is it a nova- 
tion of debt (La.) 425b. 

Bank pays any other than payee at its peril (111.) 243b. 

Debtor to bank cannot make payment in protested checks of and on bank (La.) 393d. 



132 BANKS AND BANKING 



PAYMENT— Continued 
Check (continued) 

Holder is for value when check in payment of negotiable paper is accepted and paper 

dehvered (N, Y.) 1036b. 
Payee, or agent, taking another check in lieu of cash, must use utmost diligence in pre- 
senting substituted check (Md.) 513c. 
Public officer with funds on deposit may make payment by check (Mo.) 714d. 
Warehouse receipts delivered for checks, dishonored next day, cannot be recovered by 
holder from bank receiving them as security for overdrafts in good faith (111.) 209d. 

Confederate Money 

Deposit in gold cannot be satisfied by payment in confederate notes (La.) 429a. 
Notes collected and credited to depositor by bank, cannot be paid in confederate money, 

without proof that they were collected in such money, and collection ratified (La.) 

430b. 

Credit 

given in bank for a check, is payment (Cal.) 75d, (Mo.) 747b, (Pa.) 1170b. —for a. 

note renders bank hable to payee for amount of note (Kan.) 319d. —for a note 

makes bank purchaser for value (id. ) . 
of unearned dividend is not payment thereof (N. Y.) 884c. 
Existing credits would not be afiected by notice that credits would be paid in confederate 

money (D. C.) 1266d. 

Creditor 

may demand money or something which he agreed to accept as money (Ind.) 275d. 

Deficiency 

lMi>. Failure to count package of money does not conclude payee from suing bank for de- 
iflj ficieucy (111.) 194d. 

Demand 

unnecessary at place of payment, when debtor has provided no ftinds there (La.) 418b. 

Deposit 

by debtor without authority of creditor is not payment of debt (111.) 242a, (N. J.) 2Sa. 

to credit of one whose name has been forged is payment (N. Y.) 1076a. 

to meet warrants issued and judgment obtained, is equivalent to payment if bank be- 
comes owner of judgment (S. D.) 1278c. 

in bank must be paid by bank in coin or value (111.) 187b. 

General deposit is not payment of particular note discounted, but may be applied to a 
later note (N. Y.) 974b. 

Draft 

operates as payment of check (lU.) 203e, if not dishonored (Cal.) 89c. — of debt sub 

modo (N. Y.) 995b. 
is not paid by mere deposit of funds and agreement that bank will pay it (Mich.) 618d. 

Duress 

Payment of unsecured note, by depositor in bank, under threat of attachment is not 

under duress (Utah) 1343b. 
Payment of taxes — See Taxation, Duress, Payment. 

Evidence 

of payment: Check with proof of signature (Pa.) 1177d. Books of bank showing 
credit on same day of like amount (id.). Vouchers, prima facie (Cal.) 81b. 

Extension of time 

efiected by payment of interest in advance to certain date (N. Y.) 933d. 

Instalment 

Default in paying one instalment matures whole debt (La.) 419c. 

Legal tender 

Checks may be paid in Treasury notes made legal tender after deposit of checks (D. C.) 
130b. 

Debts due state are payable in state bonds or interest thereof (Ark.) 52d. 

Payment under judicial decree may be made in U. S. notes (R. I.) 1253c. 

Pledge not redeemable in bank bills (N. Y.) 867c. 

Salaries of state bank oflicers, payable by statute in dollars, not payable in bank's de- 
preciated paper (Ark.) 45b. 

Special contract to pay in gold or silver adds nothing to contract (D. C.) 130b. 

Mistake of fact 

Payment under mistake of fad recoverable (Ky.) 367c, (Md.) 503c, (Mass.) 550d, 
(N. Y.) 952a, 963b, 1063d, 1080b; unless position of other party is changed to his 
prejudice (Ky.) 367c, (N. Y.) 952a, 963b. 
What co?istitutes : 

Payment by drawer of draft in ignorance of negligence on part of collecting bank 



INDEX 133 



PAYMENT— Continued 
Mistake of fact (continued) 

(Md.) 503c. — by bank through clearing house on due day where note is payable, 
if note is dishonored (Mass.) 56Yb. 
What does not constitute: 

Payment of check by teller without looking at account, if ftinds are not sufficient 
(Mass.) 551a. —o/^ forged bill by drawee knowingly (N. Y.) 1080b. 
Bank liable for paying wrong person (Conn.) 120d, (N. Y.) 1053d, (Wis.) 1413b. 
Bank not liable for payment to ostensible owner, without knowledge of rights of real 
owner (la.) 308a. 

Mistake of law 

Voluntary payment by bank not recoverable (N. H.) 819d. — by indorser on forged 
check not recoverable (Mo.) 491d. — m.ade with knowledge of facts, not recoverable 
(N. C.) 1125CI. 

Partial 

Holder may surrender check on receiving less amount, being the entire balance in bank 
(111.) 240a. 

Presumption 

atises from lapse of time, that stock was paid for in manner provided (Me.) 465a. — that 

bank paid proper parties (N. Y.) 1053d. 

does not arise that check is to be paid out of subsequent deposit (Cal.) 92a. — that 

payment was made, except where relation of debtor and creditor exists (N. C.) llOSe. 

— that note was paid because plaintiff paid principal money after note matured (Mo. ) 

709e. 

Promissory note 

is sufficient payment (Kan.) 335d. 

payable in "Kentucky currency" is for direct payment of money (Ky.) 347a. — "i« 

bank notes received in deposit," may be paid in notes of least value there receivable 

(Ky.) 344e. — in current notes, though depreciated, if payable therein (Ky.) 350b, 

(Miss.) 666d. 
not payable before payment due ( Conn. ) 111c. — in bank paper except on day note 

matures (Ky.) 348a. 
is paid if proceeds of renewal note are applied to it (Ky.) 349c, but whether renewal 

note intended as payment, is question for jury (Pa.) 1208c. — by check of maker 

having sufficient ftinds (N. Y.) 1031a. 
is conclusive of the items charged in the account unless mistake is shown (W. Va.) 1391a. 
given and paid without authority transfers debt to bank and may be set off on account 

(N. J.) 844c. 
does not discharge acceptor of a dishonored bUl of exchange, unless accepted as payment 

by holder of bill (Mo.) 701d. — bona fide debt, when a statute has rendered it void 

(Ohio) 1147c. — debt when marked "paid" by mistake, but later protested in due 

time (Mass.) 565b. 

Proof 

Burden is on one alleging payment (Pa.) 1223d, 1238d. 

Recovery 

Money, paid by mistake, recoverable, unless negligence of plaintiff has prejudiced defend- 
ant (N. Y.) 1050a. — on altered draft, without fault, recoverable (N. Y.) 974a. 
Money obtained by fraud, and paid creditor, not recoverable from him (N. Y.) 1076a. 
Remedy to recover money paid on false representations, not equitable (N. J.) 845a. 

Specie 

Demand must be made on proper officers and distinctly (Ky.) 351a. 

Payment must be made in specie by garnishee owing for bank stock, where bank capital 

is payable in specie (Miss.) 672a. — on execution sale (Miss.) 673a. 
Refusal is good cause of charter forfeiture (Miss.) 674c, (S. C.) 1260a. 

Suspension 

of payment by bank waives notice or demand (111.) 231a, 242b. — not equivalent to 
forfeiture of charter (N. Y.) 855c. -^ot proof of insolvency (N. Y.) 908c. -snakes 
a balance due from it a bad or doubtful debt (Ala.) 25b. 

Tender 

is an offer to pay money or to perform a contract, coupled with present ability to do so 

(Mo.) 697b. 
of amount due on pledged stock entitles owners to possession (N. Y.) 1077d. 
in notes, not stated as current, is defective (Miss.) 666d. 
of its bank notes, in payment of debt due bank, equivalent to tender in specie (La.) 

403a, 413c, (Pa.) 1182a; contra (N. J.) 823a. —to bank's assignee, valid (La.) 403b, 

(N. C.) 1180c. 
of sum due on note does not discharge Hen of a deed of trust given as security (Miss.) 

687d. — does not stop running of interest, where debtor disputes validity of deed of 

trust given as security (id.). 



134 BANKS AND BANKING 



PAYMENT— Continued 
Tender (continued) 

of certificate of deposit, good, if not refused (111.) 184b. 

of check in payment of note by guarantor, is valid (Mo.) 723a. — necessary to enable 

bank to recover, where check paid by mistake (Mass.) 590e. 
of depreciated money by bank in payment, refused, relieves creditor from any further loss 

by depreciation (111.) 187e. ~^ot good (ill.) 188b. 
of draft not necessary after demand and refusal (111.) 242a. — fo hold bank for negligence 

in presenting it (N. Y.) 1003c. 
of funds according to tenor, in payment of note, if refused, discharges indorser (Pa.) 

1186a. 
to release pledged stock, not conclusive as to amount of lien (N. Y.) 1007a. 
of security, necessary to entitle drawer to bills given agent for collection (Pa.) 1177c. 
of silver to redeem bank bills, valid (Mich.) 604a, (Mo.) 702c. 
of stipulated securities under agreement, proof of payment (N. Y.) 878b. 
Averment of making tender in current silver coin of U. S. is insuiEcient (Ind.) 254c. 
Evidence of tender admissible (Mich.) 609b. 
Interest and costs cease on day of original tender, on mandamus to compel acceptance of 

payment (Ark.) 50b. 
Notice to depositor to withdraw deposit, or confederate money would be set aside for him, 

is not tender (Ga.) 157a. 
Question is one of fact (Mo.) 697b. 

Voluntary 

payment under a claim of right, not recoverable (Pa.) 1222a. —by drawer, discharged 
by negligence, merely to "protect his credit," not recoverable (id.). 

Paid forged check returned through clearing house contrary to custom and debited to 
payee, is not a Voluntary repayment by payee (N. Y.) 942a. 

"Waiver 

Acceptance of principal, not a waiver of interest, if one is ignorant of right thereto 
(Pa.) 1198c 

"What constitutes 

Acceptance of transfer of property (Pa.) 1172c. 

Appropriation by bank, under agreement, of credit standing to depositor's account 

(N. Y.) 1081a. 
Crediting depositor's account viith. a,mouiit of another depositor's check (Ala.) 31a, (Ark.) 

58b. 
Division of a debt among several parties who give individual notes for old note (Ohio) 

1153b. 
Negotiable instrument secured by collateral, as against third persons (Mass.) 523b. 
Paym-ent in stipulated securities, though illegally issued (N. Y.) 878b. — by bank with 

care, in good faith, to one presenting passbook, though not proper party (N. J.) 846a. 

— of debt due bank within federal lines by debtor within confederate lines to branch 

bank within such lines (W. Va.) 1390d. — by bank of check, including tax receipts 

deposited by county treasurer and credited by bank, is payment of tax (Md. ) 270c. 
Surrender of note held as collateral in exchange for note payable to itself, as to other 

collateral debtors (Neb.) 787b. 

"What does not constitute 

Acceptance of negotiable instrument per se (Mass.) 580c, (N. Y.) 945b. —of new notes 

for old ones (Pa.) 1223d. 
Act of bank in placing to depositor's credit, amount of its receipt, without his knowledge 

(Md.) 275b. 
Agreement to apply deposit to depositor's note to third person, where bank becomes 

insolvent (la.) 305d. 
Canceling note (Cal.) 75b. 

Note payable in currency of one state, if paid in that of another (Mo.) 697b. 
Payment of draft in bills of broken bank (Wis.) 1398a. 
Paytnent to wrong party (Minn.) 659a. 
Surrendering note under mistake of fact (N. C.) 1105a. — on receipt of a draft which is 

dishonored (id.). 

Amendment 

by plaintiff, substituting trustees for bank, does not change parties (Ala.) 25b. — making 
all billholders parties plaintiff, in action to enforce stockholders' liability, is proper 
(Mass.) 534d. — to petition of depositor for preference on ground of fraud, may be 
allowed so as to show offer to rescind contract (Wis.) 1428b. 

by defendant, adding defense of general denial, is permissible (N. Y.) 1019b. — stock- 
holder, claiming to hold stock as collateral, that he had paid in thejamount so^held, 
is permissible in action to enforce billholders' claim (Mass.) 534d. 

Answer— see Plea and Answer 



INDEX 135 



PLEADING— Continued 
Bill — see Declaration, Complaint, Bill and Petition 

Complaint— see Declaration, Complaint, Bill and Petition 

Coimterclaim— see Cross bill. Counterclaim and Setoff 

Cross Ml, Counterclaim and Setoff 

Cross bill must be confined to matters involved in original bill (Tenn.) 1300a. 

Counterclaim, in action by assignees in insolvency for deposit made by them, that bank 
had rights of plaintiff in creditor's suit for assignor's indebtedness, is bad as not con- 
nected with subject matter of action (N. Y.) 939d. 

Set off of usury need not be specially pleaded (N. J.) 837c. 

Declaration, Complaint, Bill and Petition 

General rules. Under statute requiring declaration to be in English, use of symbol in- 
stead of word "dollars" renders pleading demurrable (Vt.) 1349a. Where writ' is to 
different counties, declaration need not show defendant's residence outside county of 
issue (Ark.) 50d. Petition setting forth good cause of action, though defectively, is 
good (Mo.) 742a. Protest of check, though filed with and referred to in complaint as 
part thereof, cannot supply omissions in the pleading (Ind.) 261d. 

Accounting. Bill for accounting by cashier for unauthorized loans is demurrable if it fails 
to allege loss, or that loans were not repaid (W. Va.) 1393d. 

Account stated. Items constituting debt need not be stated in action in nature of in- 
debitatus assumpsit on account stated (N. C.) 1120e. 

Bank bills. In action on bank bill, allegation that plaintiff is "lawful bearer and entitled 
to demand payment" is sufficient (Mass.) 526b; and averment of demand and refusal 
by bank is substantially averment of refusal by bank officers (id. ) . In action to compel 
redemption of bank bills of insolvent bank, declaration must state amount outstanding 
and unredeemed (Ga.) 147c. 

Certificate of deposit. Petition, alleging defendant's corporate capacity, issuance of cer- 
tificate, demand, and refusal under claim of partial defense, is good (Neb.) 807b. In 
action for collection bank's negligence, petition must allege that bank could have col- 
lected certificate at any time after receipt (Ky.) 369d. 

Check. Averment of special damage is essential in action for improper protest of check 
(Fla.) 135c. Complaint alleging receipt by bank, and credit to payee's clerk, of checks 
indorsed by clerk without authority, states cause of action for conversion (N. Y.) 
1041b. In action on check without words of transfer, averment that drawer had no 
funds is unnecessary (Ind.) 273a. Allegation of presentment and notice is not neces- 
sary where check is drawn without funds (N. Y.) 1060a. In action for bank's refusal 
to pay check, facts showing damage may be pleaded (Neb.) 803a. Allegation that 
plaintiff is holder for value is sufficient where check is payable to "bills payable or 
order" (N. Y.) 943a. 

Corporation. In action against U. S. Bank, incorporating act need not be pleaded (N. Y.) 
849b. Corporate existence is sufficiently alleged by averment that bank "was and has 
been" until suit a corporation (Kan.) 322c; or, in case of corporation created under 
public act, by designation by corporate title (S. C.) 1272b. Petition showing cor- 
porate powers of bank suing on city warrants, and of city, is sufficient (Mo.) 722a. 

Deposit. Declaration need not negative existence of lien on deposit sued for (Tenn.) 
1320a. Petition disclosing assumption by defendant of liabilities of bank of original 
deposit is good (Neb.) 793e. 

Directors. Declaration that directors "caused dividends to be made" is insufficient under 
1 R. S. ch. 589, sec. 10 (N. Y.) 880c. Averment of corporation's refusal to do pre- 
scribed acts is sufficient allegation of directors' knowledge, under Act of Feb. 26, 1845 
(Ohio) 1144a. 

Dissolution. Pacts showing dissolution must be pleaded (Ind.) 247a. 

Draft. Allegation that drawer remained in credit and continued to do business is suffi- 
cient to support conclusion of solvency (Ind.) 277c. 

Fraudulent receipt of money. Ownership of money deposited need not be alleged (la.) 
303b. 

Insolvency. If bill fails to allege insolvency of joint judgment debtors, equity will '''not 
interfere (Ark.) 58a. Attorney General must plead baSic facts of alleged belief of in- 
solvency (N. Y.) 860a. Allegation of nulla bona to fieri facias is not equivalent to 
averment of bank's insolvency (Tenn.) 1293b. 

Nonfeasance. Delivery for collection supports declaration for non-feasance (N. Y.) 854b. 

Notes. In action on note, pleading with copy of note is sufficient (Kan.) 336c; averment 
of indorsement to plaintiff by payee is sufficient (Ala.) 12d; averment of indorsement 
and delivery to cashier pleads title in bank (Kan.) 313a; averment of promise to pay 
is unnecessary, if note payable to bearer (Ga.) 139d. Complaint on bank's note against 
president, alleging merely his certificate of receipt of bank, is bad (N. Y.) 871c. Alle- 
gation of agreement for renewal of notes for consideration is equivalent to averment 
that it had been in writing (N. Y.) 976a. Complaint, alleging making of note to plain- 
tiff, transmission before maturity to defendant, failure of defendant to give notice of 
dishonor to indorser, and damage, is good on general demurrer (Ind.) 263a. 

Quo warranto. In proceeding to distribute assets of illegally organized bank, complaint 



136 BANKS AND BANKING 



PLEADING— Continued 
Declaration, Complaint, Bill and Petition (continued) 

need not aver demand or that there is undistributed property, further than that defend- 
ants have received property for bank (Ind.) 262d. 

Receiver. Petition for ex parte appointment of receiver must state particular facts making 
proceeding necessary (la.) 286b. Direction of receiver's suit and surrender of corporate 
rights must be pleaded (N. Y.) 863b. Receiver, alleging comptroller's assessment, de- 
mand, and refusal of stockholder, states cause of action (Cal.) 83a. 

Stockholders. Cause of action in favor of stockholder against directors is stated by alleg- 
ing loans in excess of statutory limit, and damage resulting (Yt.) 1353a. Amendment 
alleging loss by mismanagement is sufficient specification of claim under R. S. 1841, 
ch. 77, sec. 44 (Me.) 475c. Allegation that demand on directors to sue would have 
been useless excuses allegation of such demand (Cal.) 80e. In action to enforce stock- 
holders' hability, allegation of bank's insolvency is unnecessary (N. Y.) 916b; allega- 
'tion of assignment three years before sufficiently avers bank's suspension (Kan.) 332b; 
averment that exact amount due has been determined, and corporate property ex- 
hausted, is sufficient (Neb.) 798b. 

Taxation. Bill to enjoin collection of tax, on ground that statute was passed corruptly, 
is defective unless it shows damage (Ind.) 250c. In action to recover tax on national 
bank shares, paid under protest, facts showing alleged discrimination must be pleaded 
(Wis.) 1405c, 1406a. In action for unlawful levy, allegation that defendant collector 
"pretended to hold tax against plaintiff" states no injury (Vt.) 1363a. 

Usuiy. In action against national bank for usury penalty, petition must allege that bank 
knowingly contracted for and received unlawful interest (Neb.) 775c; see also 
National Bank Act, sec. 5198. 

Demurrer 

lies to new matter, where pleas are general issue and special pleas (Mo.) 725c. 

for misjoinder of parties defendant is not available to those properly joined (la.) 285c. 
— is not available in action against national bank directors for fraudulently misrepre- 
senting bank's condition (Neb.) 802c. 

for non-joinder of parties to bill to enforce stockholders' liability, is not available where 
stockholders are proportionately liable (Me.) 481c. — does not put in issue validity of 
order adding omitted party (N. Y.) 991a. 

does not admit conclusion drawn from facts alleged (Mo.) 715c. — averment, in plea 
assailing bank's charter, which is inconsistent with charter (Ky.) 350a. 

Failure to deinur waives objection to defect of parties (N. Y.) 1013e. 

Frivolous Pleadings 

Answer setting up agreement with party not legally in existence is frivolous (Mo.) 702b. 

Inconsistency 

Plea that stockholders refused to accept bonds, and that they were not stockholders, is 

inconsistent (Miss.) 665e. 
Allegations that bank took bill for collection, and that it was guilty of fraud in the 

transaction, are not inconsistent (Neb.) 797a. 

Indictment and Information 

Indictment is sufficient, if it charges offense in language of statute (Ind.) 276a. — may 
join charges of similar offenses (Kan.) 335c, (N. M.) 848c; even to combining in one 
count charges of receiving deposit in insolvent bank, and of assenting thereto (Colo.) 
106d. — M not barred by acquittal on indictment for similar oifense (Pa.) 1247c. —for 
receiving deposits after insolvency, requires allegation of insolvency (111.) 209c; does 
not require allegation of defendant's knowledge of insolvency (111.) 209c, or of loss to 
depositor (Kan.) 326a; is not indefinite for failure to state whether bank is corpora- 
tion or firm (la.) 311a. — ««(fer statute forbidding officers of insolvent bank to receive 
deposit, requires averment of receipt in official capacity (Ind.) 280a. —for forgery of 
bank notes need not describe figures in margin (Ohio) 1131b; and under R. S., sees. 30 
and 31, need not charge intent to defraud (N. Y.) 1011a. —for larceny may describe 
national bank notes as currency (La.) 432d. -for embezzlement requires words "did 
take, steal, and carry away" (Mo.) 749b; but does not require allegations of pos- 
session by defendant (Mass.) 594b, or of value of money (id.). 

Information— see|Indictment andEImformation 

Petition — see" Declaration, Complaint, BiU]^and Petition 

Plea and Answer 

General rules. Joint defendants may answer separately (Me.) 474a. Plea in abatement is 
proper where necessary defendants are not joined (Tex. ) 1321a ; or where plaintiff bank 
has failed to file articles of incorporation (Cal.) 87c; but not where actions are brought 
in several counties to enforce lien on land, if there be stipulation that one suit shall 
determine all (Neb.) 806b. Failure to plead in abatement act forbidding bank to 
assign notes, is ratification of assignment (Miss.) 675b. Plea to merits does not pre- 
vent objection to corporate capacity (La.) 387b. 

Plea of general issue, by makers and indorsers, admits signature and execution of note 



INDEX 137 

I PLEADING— Continued 

Plea and Answer (continued) 

(Mich.) 607c. — admits plaintiff's corporate character (Conn.) 116a, 117a, (Fla.) 
136d, (Mich.) 608b, (Miss.) 673b. Conlra (N. Y.) 854c. —in suit on bond throws 
burden of proving execution on plaintiff (Md.) 494a. —prevents collection bank, in suit 
for negligence, from offsetting debt of plaintiff's agent to it (La.) 385e. —prevents 
defendant, in action on note, from raising question of fraud in issue of plaintiff's stock 
(Miss.) 673b. 

General denial questions title, in action to recover deposit (Kan.) 325b. — questions 
ownership and indorsement, in action on certificate of deposit (id.). 

Z><?/krai^ of alteration raises no issue in action on note (S. D.) 1274c. — o/" charter, giving 
no specific right to issue paper money, is not good to charge of illegal banking (Mich.) 
604c. — of application of proceeds is not available, in action for overdraft, to revive 
stale setoff (Kan.) 324c. —o/" decree in suit to which defendant was not party is not 
available (111.) 216c. —o/" foreign judgment is good as plea in bar (Conn.) 116b. —of 
escrow, in suit on bond, admits signing and seahng, but not delivery (Md. ) 494a. — of 
payment, in action on note, does not put in issue plaintiff's corporate existence, or 
fraud in issue of stock (Miss.) 673b. —of payment of all bank debts by trustee in dis- 
solution proceedings, is good in action on note by trustee (Miss.) 682c. — o/" tender in 
bank notes, requires allegation that they were current, if obligation is to pay in cur- 
rent notes (111.) 181c, (Miss.) 666d. —o/ unconstitutionality of plaintiff's charter, is 
not available in action on note (Ky.) 349e. — of no legal organization by plaintiff is 
not available in action against acceptor of bill of exchange (Ga.) 150d. — o/usury, to 
entire demand on note, is bad on general demurrer (Tenn.) 1298c; is good, as to un- 
paid interest, in suit by national bank (Neb.) 797c; is available to borrower, regardless 
of certificate of "no defense" (Pa.) 1204a. —that plaintiff is not real party in interest 
requires allegation as to who is proper party (Ind.) 256b. — that plaintiff failed to 
take advantage of composition agreement of maker, is not available to collection bank, 
otherwise than in mitigation of damages, in suit for failure to charge indorser (Ind.) 
263a. — that bank's officers and stockholders, in attempt to depreciate value of stock 
pledged as collateral, refiised at maturity to sell collateral, to defendant's damage, is 
good in action on note for purchase price of stock (Ga. ) 162c. — in suit on paper, dis- 
counted when it had more than certain time to run, by bank whose charter prohibited 
such discount except as security for debtor, requires averment that defendant was not 
such debtor (Tenn.) 1287d. —o/' non-joinder of party plaintiff, without averment that 
interest of party not joined existed at time of suit, is bad (Ind.) 255b. 

Admission in answer, that altered check, properly indorsed, was presented by bank's agent, 
is not admission that bank indorsed it (N. Y. ) 1034a. 

Court m,ay strike out only after election has been made between several pleas setting up 
same defense (Ark.) 52c. 

Beplication and Reply 

Replication in quo warranto is bad if it avers issue of circulating notes, without saying 
"to more than double the amount of paid in stock," the charter limit (Miss.) 685b. 
—for duplicity, where each of two facts alleged would be ground for forfeiture (id. ) . 

Failure to reply is admission of facts alleged in counterclaim (N. Y.) 983a. 

Reply— see Replication and Reply 

Setoff— see Cross bill. Counterclaim and Setoff 

Surplusage 

need not be proved (Ala.) 21c. 

may be stricken out (Tenn.) 1304b. 

includes name of unnecessary party plaintiff! (Tenn.) 1304b. —words in bank's name, 
descriptive of location, (Mich.) 605e, (S. D.) 1283a, in equity (N. C.) 1124b. — " U. S." 
in indictment charging insolvent bank with receipt of deposit of "lawful money of the 
U. S." (la.) 303b. 

Verification 

of answer by cashier, on information and belief, doeS not disprove bill (Miss.) 664b. 
of plea of nU debet throws on plaintiff burden of proving signature to note (Ark.) 46e. 
of plea of non est factum is essential in action of debt on bond (Ark.) 42b. 
Failure to verify answer of surety on note admits execution (Cal.) 93b. 

PliEADIWO AND PROOF 

Averments 

In action on deposit, defendant must plead want of ownership before it can prove it (N. Y.) 
1027a. —on draft, proof of bank's custom sustains averment of due notice (Ala.) 17a. 
— on certificate of deposit of insolvent bank, creditor can prove purchase of claims at 
a discount by stockholders and directors without pleading it (Ga. ) 160a. — based on 
money counts, draft or check is admissible without special averment (N. Y.) 849c. 
—for money paid through false representations, allegation of false representations 



138 BANKS AND BANKING 



PLEADING AND PROOF— Continued 
Averments (continued) 

with knowledge, will not let in proof of false representations without knowledge (N. Y.) 
1067c. —for negligence defendant cannot prove plaintiff's lack of diligence in collecting 
from maker without pleading it (Neb.) 771c. —on note, plaintiff cannot prove notes 
without averring promise to pay (Ky.) 361c. —for money had and received, payment by 
stranger cannot be proved unless pleaded (Kan.) 332c. 
Misnomer of bank in note may be cured by averment and proof (Tenn.) 1291a. 

Burden of proof in action 

involving agency to show ratification is on one claiming it (la.). 297c. 

of assumpsit is on bank to show that surrender of debtor's notes was not intended as 

payment (Ga.) 161b. 
involving authority of bank officers, is on bank denying authority (Kan.) 334c, (N. J.) 

823c. 
on bank bills fraudulently issued, is on bank to show non bona fides of holder (Mass.) 
540a. — is on plaintiff to show that he has paid taxes assessed against them (Ga.) 
155b. —of a defiinct bank against new bank of same name is on plaintiff to show 
adoption of bills by defendant (Mass.) 519b. 
on bond is ou obUgee to show consent or want of consent to alteration (Pa.) 1174c. 
—is on defendant under plea of escrow (Md.) 494a. —is on plaintiff to prove execu- 
tion, where plea is non est factum (id.). 
on certificate of deposit, offered as setoff, is on party offering to show that it was re- 
ceived before insolvency (Tenn.) 1298a. —is on holder to establish good faith when 
fraud is raised (S. D.) 1281b. —is not on plaintiff to show bona fides because certifi- 
cate was negotiated at less than face value and request was made to defer demand for 
payment (N. Y.) 918b. 
on check to show that drawer was not damaged by failure to present is on holder (la.) 
305b; but the burden shifts if it is shown there were no funds (W. Ya.) 1396b. -is 
on apparent drawer to show forgery (Md.) 508c. — where stolen, is on holder to show 
bona fides (N. Y.) 959c. —to show non bona fides of holder is on one asserting it 
(Pa.) 1210d. —is on holder to show lack of fimds (Wis.) 1408b. —is on bank to show 
payment (Wis.) 1414c. 
for conversion is on banker to show diligence where he lends customer's money ou 
forged securities (N. Y.) 1055a. —o/" checks deposited by an agent, is on plaintiff to 
show agent's fraud, before indorsee for deposit need show bona fides (N. Y.) 892a. 
— of collateral, is ou plaintiff to show value of special interest if he be not absolute 
owner (N. D.) 1129a. 
on a deposit is on bank to show payment (lU.) 207b, (Neb.) 806c; or on its receiver (N. Y.) 
1076d. — is on savings bank to show that depositor must give notice of withdrawal 
(Mass.) 585e. — to overcome presumption of acquiescence in account, is ou depositor 
(Mich.) 610c. — is ou administrator to identify intestate as depositor (N. Y.) 
1016b. —is on claimant to show title (Pa.) 1215a. —is on bank to show that 
deposit in trust for plaintiff is owned by another (Pa.) 1202a. —against directors 
is on plaintiff to show charter (Pa.) 1194a. 
on drafts is on plaintiff to show excuse for laches in presentment (lU.) 192e. — is on one 

claiming Hen for general balance, to show usage giving such lien (N. Y.) 960a. 
to enforce payment of stock subscription, is on subscriber to show that a reduction of the 
number of shares paid for was made before the bank's liability to plaintiff, its cred- 
itor, accrued (Miss.) 682a. 
to enforce stockholder's liability under statute is on stockholder to show discharge (Ga.) 

149d. 
involving fraud is on one setting it up (Neb.) 806b, (N. Y.) 945b, (R. I.) 1250c. 
to recover a gratuitous special deposit, is on plaintiff to show gross negligence (Ga.) 169d, 

(Pa.) 1209d. 
to wind up affairs of insolvent bank is on receiver to show that certificates of deposit were 

issued without authority (Neb.) 782a. 
on an indemnity contract, is on plaintifif to show that he was legally liable (Mass. ) 557a. 
for salary, is on plaintiff to show agreement for increase claimed (Mass.) 566b. 
to compel issuance of a license, withheld for non-payment of taxes, is on plaintiff to show 
that bills tendered in payment of taxes were acquired by him prior to repeal of statute 
making them receivable (Tenn.) 1291d. 
for negligence in failing to give notice of protest to indorser, is on collecting bank_ to 
show holder was not damaged (La.) 380c. — is on bank to prove custom of making 
demand on draft by telephone, where no protest is required (Mo. ) 755c. — is on holder 
to show draft was not presented (id.). — is ot\ collecting bank to show due diligence 
where no demand is made (N. Y.) 945c. 
on notes, is on plaintiff to show execution (Ark.) 61d. — is on surety to show extension 
of time to principal (Ark.) 46e. — is on maker to show that purchaser took with 
notice of failure of consideration (Ga.) 177d. — obtained by fraud is on holder to show 
he had no notice of fraud (la.) 302a. —o/" insolvent bank, is on holders to show 
possession prior to assignment (Ky.) 351c. —of a firm, taken as collateral, is on 
holder to show that they were given for firm debt or with consent of all partners 
(Mass.) 563a. —w on holder to show consideration (Mass.) 543a, —,^^/rf as collateral. 



INDEX 139 



PLEADING AND PROOF— Continued 
Burden of proof in action (continued) 

is on plaintiff to show they were taken as security for a general account (N. Y.) 1047a. 
— is on one affirming illegality to show it (N. Y.) 890a. — obtained through duress, is 
on holder to show bona fides (N. Y.) 951d. — is on plaintiff to show that renewal 
notes were taken inpayment (Pa.) 1223d. — is on accommodation maker to show 
agreement by holder to release him (S. D.) 1281d. — is on bank to show withdrawal of 
deposit where defendant offers it as a setoff (Tenn.) 1302b. 

where payment is pleaded, is on one alleging it (Pa.) i238d. — is on one, relying on cir- 
cumstances which would make payment to an officer equal to payment to bank, to 
show such circumstances (Ind.) 2-77a. 

to recover money paid on forged checks, is on drawee bank to show negligence of in- 
dorser or holder who has received payment in good faith (Ky. ) 366a. — under mistake 
of fact, is on defendant to show injury has resulted to him (N. Y.) 952a. — yor taxes, 
is on town taxing non-resident to show his liability (Me. ) 478e. 

o/ replevin for bonds is on defendant to show actual delivery of bonds to it as pledge by 
apparent owner (N. J.)- 839d. 

to set aside an assignment under bank's seal, is on one attempting to show firaud or lack 
of authority (Fla.) 134b. 

to recover a trust fund is on claimant (Wis.) 1417c. 

for usury penalty under National Bank Act is on bank to show agreement for application 
of payments to interest first (la.) 290b. — won bank to show ownership of paper by 
third person at time of usurious payment (Neb.) 779a. 

Burden of proof in criminal proceeding 

for forging notes of foreign bank, is on defendant to prove authority (N. Y.) 1011a. 
for receiving deposits after insolvency, is on defendant to show solvency (111.) 209c. 
for wrongful overdrawing of account by bank officer, is on prosecution to show that 
money was wrongfully obtained (N. Y.) 1019e. 

Necessity for proof 

In action on account, bank need not prove agreement to furnish money to defendant (la.) 
293a. — on bank bills, proof must be given of specific biUs sued on (Conn.) 112a. 
— on a bond, one signing as "cashier" cannot escape personal liability without show- 
ing authority to bind bank (Kan.) 336d. — fry a corporation, it must show incorpora- 
ation under general issue (111.) 180c. 

In sum-mary proceedings, plaintiff must prove official character of maker of certificate of 
title (Ala.) 14c. 

Under indictment for falsifying books, state must prove knowledge or suspicion by defend- 
ant that entries were false (N. Y.) 1056b. -for embezzlement by officer, care of funds 
must be proved (N. Y.) 988b. 

Prima facie case in action 

on certificate of deposit \% made by producing certificate with proof of execution (111.) 

197d. 
for negligence against collecting bank is made by proof of failure to demand (N. Y.) 945c 

Prima facie proof 

of property in bank note is made by showing possession of note payable to order (La.) 
376d. 

Variance 

is fatal where complaint alleges furnishing proofs of loss and proof shows waiver (Ga.) 
172c. — where conveyance to bank is alleged and proof shows conveyance to cashier 
individually (Neb.) 773a. — where negligence in demand and notice on last day of 
grace is averred and proof shows demand and notice on second day of grace (Ohio) 
1131d. — where conversion of funds, in action on teller's bond, is averred and proof 
shows incorrect entries (Pa.) 1239c. —where a. note bears date 1827 and proof shows 
date 1837 (Vt.) 1348a. — where indictment charges unlawful circulation of bills pay- 
able to "receiver, bearer or holder," and proof shows certificates payable to "bearer" 
(Mo.) 699c. — where there is a variation in date of maturity alleged from that of 
note produced (Ala.) 15b. 

is immaterial, where check was alleged to be payable to " W, or bearer, and by him delivered 
to plaintiff" and proof shows direct delivery (Conn.) 114c. — where original drafts 
proved do not conform to copies attached to complaint (N. Y.) 887a. , — where dates 
of payments alleged as a defense differ from those proved (Kan.) 335d. — where checks 
proved to be embezzled do not exactly conform to specifications in indictment (Mass.) 
594b. — where writ alleges indorsement by "M, agent" and proof shows "G. Co., M, 
agent" (Me.) 484b. —where writ alleges "U. S. Nat. Bank of New York, N. Y.," and 
proof shows bank to be "U. S. Nat. Bank of City of N. Y.," provided there is no evi- 
dence of another bank of same name (Mass.) 593b. — where declaration on bond gives 
true corporate name, but bond as proven omits word "company" (Ky.) 346b. — where 
an indictment in describing a bank omits " of Springfield, Mo.," and certificate of incor- 
poration shows these words included in name (Mo.) 758b. ^ ^ 



140 BANKS AND BANKING 



PLEDOE 

(See Collateral) 

POWERS OF BANKS 

National Bank 

Agency extends to acting as city depository (Kan.) 321c. — to making collections (N. D.) 
1128a, (Tex.) 1327a, (Utah) 1342b. 

Agency does not extend to acting for stockholders in suit to review taxes (N. J.) 827c. 
— making loans for others (Tex.) 1327a. — acting for U. S. while in liquidation (Ga.) 
161a. —flrfzVzg- as real estate broker (Ark.) 56a, (N. D.) 1128d, (Pa.) 1210a. 

Collections (see Collections) 

Deposits may be received specially (Ohio) 1156b, or gratuitously (N. Y.) 992c, or as 
security (N. Y.) 975c, 982b, and certificates, payable in future, may be issued there- 
for (Mass.) 577d. — may be recovered, though contract was ultra vires (Mass.) 588a. 

General Power extends to employing attorneys (Okla. ) 1164a. — to acts authorized by 
Banking Act (111.) 245a. —to acting as bailee (Ala.) 39b. —to borrowing money 
(Colo.) 100b; contra (N. D.) 1130b. —to adopting by-law requiring cashier's bond 
(Mo.) 720d. —to consolidating, if charter permits (Tex.) 1339c; contra as to con- 
tinuing obligations by extension of charter (N. J.) 843d. —to covenanting to pay 
in future (N. Y.) 1077c. — to paying check without first presenting it to drawer for 
certification (la.) 309d. — to exchanging government securities (la.) 286d, (IJ. Y.) 
963a. —to agreeing to forbear closing bank (N. Y.) 105 9e. —to selling grain owned 
by it, on credit (S. D.) 1280b, and in doing so may avail itself of security (id.) . —to 
proceeding under general issue without proving incorporation (Colo.) 103d. — to pro- 
tecting its realty (N. J.) 843d. —to rescinding credit given by mistake (Cal.) 75b. 
—to setoff of depositor's debt in action on check (Ky.) 371c. —to doing business with- 
out a state license (Mo.) 720c. —to suing or being sued (W. Va.) 1394a, if not dis- 
solved (Kan.) 327e, regardless of stockholder's resolution or appointment of trustees 
(Minn.) 641b. 

General power oi ha.n^ located in another state is that of foreign corporation (N. Y.) 
940c. — is not curtailed by failure to become a bank of issue (Ala.) 29b. 

Interest may be charged the same as by individuals (Colo.) 104b. — m.ay be charged 
at rate allowed by state laws (Ohio) 1162a, (Tex.) 1324a; contra if more than is 
allowed by charter (Ohio) 1135b. —zj governed by federal statute as to usury (Neb.) 
789c. — cannot be recovered on deposit accepted ultra vires (Mass.) 588a. 

Officer disqualified by law cannot be made one de facto or de jure ( Dtah) 1344b. —hav- 
ing completed sale, bank cannot rescind and recover the money (Mass.) 560d. — can 
be discharged at pleasure and without stating reason (N. Y.) 960b, and discharge 
need not be contemporaneous with fault (id.). 

Bank can act only through its board of directors (Colo.) 106b. 

Cashier binds bank by agreeing to pay deposits on contingency (Kan.) 332c. — by in- 

m dorsing accommodation notes (Wis.) 1406b. 

Loan may be made of money (Tex.) 1331a, in excess of that allowed by Currency Act 
(Pa.) 1206b. —o« personal property (Ohio) 1157a. —o« warehouse receipt and mer- 
chandise held as security (Ohio) 1157a. —on stock of another bank (111.) 227c, 
(Ohio) 1156a, (Tex.) 1340c; contra (Neb.) 782d. —on stock representing realty 
(Minn.) 635c. —on chattel mortgage (111.) 210b, (la.) 287c, (Kan.) 318d. —on real 
estate (Pa.) 1213a, (Va.) 1376c; contra (111.) 198c. —on realty to secure prior 
indebtedness (Ind.) 267e, (Me.) 488b, (Ohio) 1153b, 1153c, (Wash.) 1382c, or to 
secure future indebtedness (N. C.) 1114b; contra (Pa.) 1203b, 1206e. 

Security for illegal overdraft may be enforced (N. Y.) 1024d, in any order (Neb.) 787b. 
—if fraudulently obtained, cannot be enforced (111.) 198c, or if it is real estate mortgage 
(111.) 198c. 

Ultra vires loan may he enforced (Mass.) 581a, (Ore.) 1167b, (Pa.) 1206a, 1223c. -wtll 
not discharge borrower from balance on a loan within authorized amount (Ohio) 1153c. 

Mortgage may be paid on bank's realty (N. Y.) 1077c. —reserved on &aXe of realty (La.) 
439a. —enforced though ultra vires (la.) 288e, (Mich.) 627e, (N. J.) 832d, 845d, 
(Vt.) 1357d. —taken on real estate, as collateral security, by assignment from third 
party, if it was previously executed (Mass.) 558c. 

Purchase may be made oi checks (Mass.) 554a. —a/" negotiable paper (111.) 206c, (OMo) 
1154b, (S. C.) 1268c, without affecting indorser's liability to bank (Mass.) 562c; 
contra if made with surplus fiinds (Md. ) 509a. —of note ultra vires and this does not 
prevent recovery on note (Mass.) 560c, (S. D.) 1277c. —o/" realty to save debts (lU.) 
200a, 203c, (Ind.) 264c, in president's name (111.) 203c. —of seed to protect farm 
bought under execution (Kan.) 334b. 

Seal\% presumptive evidence of consideration (N. Y.) 1077c, and, with president's affidavit, 
shows prima facie authority to execute bond (N. Y.) 1077c. —with president's and 
secretary's signature, makes contract admissible (Kan.) 334c. — is unnecessary on 
instrument revealing execution by president in bank's business (N. Y.) 958e. 

State Law governs, except in case of conflict (N. Y.) 1046d. 

See National Bank Act. 

Stock may be purchased to save debt (Md.) 506d, (N. Y.) 953b, (N. D.) 1131a. —way 



INDEX 141 



POWERS OF BANKS— Continued 

Collections (continued) 

be sold (Mo.) 723c. — may not be purchased if it is its own (Minn.) 661a, or that 
of other companies (Cal.) 87d, (Neb.) 782d. 

Ultra vires acts are shown in making donations (Neb.) 786b. — selling bonds on com- 
mission (Md.) 507b. —acting as guarantor (la.) 308c, (N. H.) 817c, (Tex.) 1340a; 
contra (Neb.) li'lz.. — creating a Ken on its own stock (Ky.) 360a; contra \a creating 
a lien on all its customers' funds (Mich.) 621f. — charging maker for indorsing note 
(N. Y.) 1001a. — agreeing to turn over insurance for obtaining depositors (Mass.) 
589b. — contracting to pay stockholder's debt (N. Y.) 941a, or taxes, unless he has 
property (la.) 287b. — acting as surety (111.) 245a, (Mich.) 615e. —leasing office 
before its organization (111.) 230d. 

Contract, though ultra vires, may be enforced if wholly or partly executed (111.) 216a. 

Ultra vires is a defense (lU.) 245a, (Md.) 507b. 

Ultra vires is not a defense by bank issuing its own check (Dak.) 126a. — byhaxik. against 
one relying on guaranty to his damage (N. C.) 1127a. — after contract is executed 
(Colo.) 100b, (N. D.) 1131a, (N. J.) 843d. 

Ultra Vires acts can be questioned only by government (Cal.) 89a, (N. J.) 832d. — can- 
not be questioned collaterally (Mo.) 758a, (Neb.) 789b. 

Letter showing ultra vires contract is inadmissible (la.) 308c. 

Savings Bank 

Authority to issue circulation notes may be revoked if unused (Minn.) 662d. 
Definition. " Banking powers " refer to those used in issue of paper money (Ohio) 1157c. 
Deposits may be made of "available ftind" and "temporary deposits" in single account 

in one bank (N. Y.) 1084d. — received and securities issued therefor (Ohio) 1157d. 

— remitted at depositor's directions to be applied on his note (Mo.) 760a. 
General power extends to making assignments (S. C.) 1272b, and authenticated copy of 

deed proves it (W. Va.) 1394b. —borrowing money (111.) 201b, (Mo.) 716a, 726c. 

— creating an investment department (111.) 201b. — indorsing notes (Me.) 481b. 
General power of bank and authority of cashier must be known by person dealing with 

them (N. Y.) 1034d. 
Loans may be made on personal security (Colo.) 105b. — on stock (N. Y.) 1002c. — on 

note, bond and mortgage (N. Y.) 1022a, (Ohio) 1152b. — on real estate (Minn.) 

637a, (Miss.) 687d. —for more than sum allowed by law (la.) 306a. 
Loans unlawfixUy made are not ratified by failure to repudiate (N. J.) 834b. 
Officers and Agents such as directors engaged in general banking are not allowed by 

corporate existence to conduct savings bank business, and are liable as partners 
(Ohio) 1156d. — trustees are Uable to bank in action at law for misfeasance or non- 
feasance (N. Y.) 994d. 
Purchase may be made of first mortgages (N. J.) 832c. — notes and bills of exchange, 

and recovery may be had thereon (la.) 308b, (Kan.) 314b, (Md.) 498a, (Miss.) 687b, 
(Mo.) 708d, (N. Y.) 992a; contra (Md.) 510a. —stock (Md.) 500c; contra (Kan.) 

314a, (Me.) 483a. — city warrants, and suit may be maintained thereon (Mo.) 722a. 
Ultra Vires ads are shown by contracting to have clerk keep accounts at public sale and 

take notes from purchasers (la.) 307b. — dealing in cotton futures (N. Y.) 1034d. 

— applying proceeds of mortgage security on note to own use on ground that act 

was illegal (Mass.) 577a. — accepting city warrants as cash, and such defense cannot 

be made without returning them (Wash.) 1385a. 
Savings Bank holding land ultra vires is not liable to have it escheat (Cal.) 99b. 
Ultra Vires is no defense (Me.) 484b, (Md.) 500c, 510a, (Mass.) 569b, 585d, (N. Y.) 

984a, 984b, 991d, 1009d, 1021b; contra, if bank received no benefit (Me.) 483a, or 

if bank is sued as principal for faiHng to disclose real principal (N. Y.) 1034b. 

• State Bank 

Charter should not restrict or exclude steps necessary to secure prior debts, otherwise 
uncollectible (Ind.) 246b. 

Acts of bank and stockholders after charter's expiration may amount to state's accept- 
ance of extension of charter (La.) 420a. 

Deposits of paper m.ay be received for collection (Mo.) 740c. — on any terms agreed 
upon (Minn.) 653c. —and interest paid (Minn.) 653c, (N. Y.) 1023b. 

Deposit cannot be received specially in absence of express authority (Mass.) 521c. 

Discount may be ^nade of bills drawn out of state, where power to discount inland bills 
exists (S. C.) 1263a. — o/' notes payable at bank where charter forbade discounting 
paper not payable at bank (Tenn.) 1284b. 

Discount need not be made immediately where depositor indorsed with instructions to 
apply to other notes, and he and assignee cannot claim it (Mass.) 524b. 

Genercil powers extend to agreeing with other banks jointly and severally to maintain 
circulation and contribute pro rata to default of anyone (La.) 401a. — assigning for 
creditor's benefit, to trustee, whose title protects creditors from subsequent demands 
(W. Va.) 1391b. — borrowing money (N. Y.) 887b. —giving collateral security 
(Ind.) 281c, (N. Y.) 914c, though insolvent (Ind.) 281c, cow/ra if for payment in future 
and with interest (Mass.) 547a. —increasing or reducing capital (N. Y.) 881d, 938c, 
if authorized by charter (Tenn.) 1302a. — cashing checks on other banks (N. Y.) 



142 BANKS AND BANKING 



POWERS OF BANKS— Continued 
State Bank (contintied) 

950d. —purchasing checks (N. Y.) 101 7d. —collecting debt exceeding 1-10 capital 
(111.) 245d, though, statute forbade assignment of evidences of debt (La.) 407e. —evi- 
ploying special counsel regardless of act fixing salary of bank's counsel (Ala.) lie. 
— contracting in foreign state unless prohibited by law (Ohio) 1149b; contra as tocon- 
ducting business in Ohio, when organized in Michigan (Ohio) 1141a. —powers 'i.no'^n 
to common law (Ala.) 10a, (S. D.) 1275c. —powers specifically granted and those 
to carry the latter into effect (Ohio) 1136c. —providing in charter for damages, to 
noteholders, on suspension, in addition to interest (Ark.) 50e. — charging exchange for 
collecting draft if not a device to conceal usurjr (Wis.) 1401b. — disposing of pledge 
without directors' resolution (N. Y.) 957b. — disposing of property as a natural person 
(Wis.) 1415c. — reserving expenses of officers in operating railroad where banking 
ceased and bank assigned to pay debts and complete road (Miss.) 668a. — setting off, 
in action for indemnity, notes due by president (N. Y.) 1071a. —furnishing supplies 
necessary to protect property taken for debt (Ga.) 164b. — saving debt by taking 
debtor's claim against another (Mo.) 718d. — taking merchandise to settle debt, 
though charter forbade dealing in such (N. Y.) 892c. 

General powers do not extend to acting during proceedings for liquidation (Cal.) 98c. 
— impairing other indemnity to the loss of the accommodating party by making secret 
agreement (N. Y.) 897c. — making notes to circulate as money (Mich. ) 604c, (N. Y.) 
875b, sav^ on demand and without notice (N. Y.) 884b. 

Guaranty may be made of mortgage sold by debtor to pay bank (N. Y.) 900c. — signed 
by president does not show bank had power to make a guaranty (S. D.) 1282c. 

Interest may be taken in advance on discounting notes (Me.) 468c, (N. Y.) 905c. — oj 
6 per cent or more is proper in absence of charter restrictions (Ohio) 1136b, or if out 
of the state where incorporated (Miss.) 684a. — of \Q per cent may be contracted for 
in writing (Mich.) 609c. — cannot be bargained for, if not allowed others, where legis- 
lative intent to grant more is doubtful (Miss.) 687d. — cannot be avoided by making 
creditor an involuntary depositor (N. H.) 813c. 

l.iability does not arise in specie for amount collected on illegal agreement to collect de- 
preciated paper (Mo.) 697c. —for deaUng in bills during suspension of specie pay- 
ments, if record does not show they were remitted for state bonds as authorized (Ala.) 
20a. —for town tax, where charter exempts capital stock for one year (Miss.) 682d. 

Loan may be made of bank bills (N. Y.) 912a. —of money, which may be returned as 
contribution to capital (Miss.) 672b. — though notes given as basis of own issue were 
not paid in specie (Miss.) 684b. — «/ single, without violating law prohibiting keeping a 
discount office (N. Y.) 877d. 

Loan may be made on security (Mich.) 597d. — of judgmenti purchased (111.) 182e. 
(?/" merchandise (Ala.) 10c. — o/" mortgage (Ind.) 248c. — o/ real estate (Cal.) 80a, 
(Me.) 461b, (N. J.) 824a. —for past or present debt (N. C.) lllld. —of own stock 
(Mo.) 761a. — on note payable in state by foreign bank, without unlawftil exercise 
of banking powers (Wis.) 1405a. 

Loan cannot be made of credit even if bank is benefited by use made by accommodated party, 
unless charter gives power to guarantee paper (Mo.) 760b. — of large sums to one per- 
son in small amounts, where charter prohibits large loans (Ala.) 10c. — to firm of 
which director or stockholder is a member (N. Y.) 867d, 978d. 

Mortgage may be made to secure deposits, without stockholder's consent (Pa.) 1207b. 
— may be made under power to buy , and sell (N. Y.) 861c. — duly authorized cannot 
be enjoined as "illegal increase of capital (Pa.) 1208d. — in cashier's name may be 
sued on by bank (Ind.) 266a. 

Negotiable paper may be passed (N. Y.) 932d. — by indorsement (N. Y.) 905c. — after 
expiration of charter where authority to close business is given (Mass.) 525a. — be- 
tween bank and officers without a vote (Me.) 482c. 

Negotiable paper may be purchased (Ark,) 51e, (Cal.) 95b, (Dak.) 125c, (N. Y.) 984d.. 
— where charter provides it may purchase "effects" (Mo.) 694b. — not at greater rate 
than it could charge for loans (Mo.) 742a. 

Negotiable paper may be drawn by bank (N. Y.) 876b; but if usurious it cannot be re- 
covered on (Mich.) 602c. — may be given for draft of banking firm unless it is 
charged that firm had no right to issue circulating notes (N. Y.) 890a. — signed by 
cashier may be given for debts contracted in regular course of business (Wis.) 1440b. 
— may be issued payable at another bank and hability is on issuing bank (Tenn.) 
1296b. —payable elsewhere may be collected, if bank is authorized to deal in bills 
payable at itself (Ala.) 8c. — cannot be made to bank "or order" (Ohio) 1147c. 
— cannot be made by president to himself (N. Y.) 867a, 

Officers and Agents. State bank may contract by agent (Minn.) 633d. — may contract 
by implication, and affirm acts of assumed agent (N. Y.) 882a. — may take bond from 
cashier, though statute did not require (Mo.) 730d. — liable for ultra vires acts of 
officers having discretionary powers (N. Y.) 867d. — liable for not preventing treas- 
urer from passing illegal notes (Mo.) 700c. 

Real estate may be bought under bank's own execution (Ala.) 24c, (lU.) 182e. — may be 
bought to secure debt (Miss.) 684d. —may be sold (la.) 308d. — may be bought 
if necessary for business (Mo.) 704d, (N. J.) 823c; contra (Wis.) 1422d. 

Real estate cannot be bought without a license (Pa.) 1171d, though charter allows it to 



INDEX 143 

POWERS OP BANKS— Continued 
State Bank (continued) 

hold necessary land (Mich.) 601a. 

Real estate can be conveyed and state alone can object (Pa.) 1171d. — may be taken in 
payment of debt (Tenn.) 1317d. — may be paid for out of undivided profits and a 
reconveyance may be demanded by either party by agreement (la.) 303c. 

Deed to bank for land, which bank cannot buy, is absolutely void (Ind.) 249c. 

Seal is unnecessary (Md.) 494a. — when assigning a note (Mass.) 518a. — on assigning 
mortgages (N. Y.) 882d. —on a contract for employing clerks (Ky.) 348d. — where 
contract about realty is partly performed (Va.) 1367d. 

Seal must be proved brfore deed is admissible (Pa.) 1171d. 

Seal and president's signature show mortgage prima facie lawful (N. J.) 823c. 

Production of deed under seal by person claiming thereunder shows deed prima facie 
good (Mass.) 530b. 

State bonds may be bought (N. Y.) 900d. —sold under power to negotiate bonds for 
customers (Mo.) 740b, and such contract is not bad per se and state alone can hold 
bank for it (id.). 

.Stock of its own cannot be bought (Cal.) 77c, (Colo.) 108a, (N. Y.) 923a. -^ay be 
bought bona fide and reissued, but agreement that holders of reissued stock should 
not be Uable is void (Wash.) 1385c. 

.Stock may be acquired to .deposit to secure circulation (N. Y.) 881d. — may be bought 
when charter prohibits dealing in goods, wares and merchandise (Vt.) 1349b. 

Sue and be sued. State bank may sue on note discounted by it (Tenn.) 1284b. — in 
corporate name without averring incorporation (Ohio) 1137d. — if\t shows it did 
business in that name, had oificers, kept discount register, and was owner of note sued 
on (Mo.) 711c, and may have a jury trial (Mo.) 694e. — after suspension of specie 
payment beyond charter time (La.) 385d. — though incorporated in another state 
(Mo.) 694c, 694d, (N. Y.) 852b. Contra after time Umited by statute (Miss.) 670d. 

Branch bank cannot sue (La.) 387b. 

Foreign bank may sue in Virginia on contract made in foreign state (Va.) 1367c. 

.Ultra vires. Stale bank acts ultra vires by conducting mining business (Colo.) 105a. 
— by spectdating or engaging in other business (N. Y.) 878c. — by doing business after 
failure to pay a protested draft (N. Y.) 867d. —by_ delivering bills to another bank 
with agreement not to return for redemption until fiiture date (Mass.) 547a. — by 
giving certfiicate of deposit payable in future for proceeds of paper illegally discounted 
(Mass.) 539a. —by executing judicial bonds (Neb.) 808a. —by mutually exchanging 
bills with another bank (N. Y.) 867d. —by paying taxes assessed against stockholders 
on their stock (S. D.) I^Tlh. — by charging state premiums paid on specie to pay 
public creditors, after suspension of specie payments (Va.) 1371b. — by receiving^ex- 
press package of money after banking hours (Wis.) 1397c. 

Ultra vires contract is not always void (Md.) 506a, (Wis.) 1398b. —cannot be recov- 
ered upon (111.) 205a, 205b, (Ind.) 272d, (Mich.) 601a, 602b, (Mo.) 700c, (N. Y.) 
lOlOe. — wnot a defense (Me.) 473a, (N. Y.) 852b; contra (Ky.) 342a, (Neb.) 804b, 
808a. — is not a defense, if benefits have been received (la.) 298d, (N. Y.) 879c; 
contra (Md.) 520c. 

Ultra vires use of consideration does not afiect contractor (N. Y.) 879c. 

Assumption of authority to estabUsh branches afterwards abandoned does not forfeit 
charter (Mich.) 600b. 

Exercise of powers beyond authority does not create a nuisance (N. Y.) 855c. 

State alone can question power to estabUsh branches (N. C.) 1124b. 

Trust Companies 

General powers extend to receiving deposits, though forbidden to issue circulating notes 
(Ala.) 28a; contra as to general deposits (Mo.) 757b. —discounting -mot^s (Ark.) 60b, 
if charter gave banking powers (Conn.) 110a, 112d. — ifraw^arfm^ business similar to 
savings banks' (N. Y.) 1048c. 

General powers do not extend to powers created by legislature amending statutes rela- 
tive to powers which have been used (Mo.) 757b. 

Ultra vires. Trust Company acts ultra vires in issuing evidences of debt to be used as 
money (Ohio) 1135c. —purchasing its own stock with capital (Conn.) 122b, (Minn.) 
643c, but previously purchased shares may be sold or credited (N. Y.) 909d. 

Trust Company will not be enjoined for ultra vires acts (N. Y.) 851b. 

Ti'ust Company having certified check cannot plead incapacity on ground that it is not 
a chartered bank (Mo.) 765b. 

United States Bank 

General powers extend to disposing of its shares as an individual (Pa.) 1180c. —suing 

and justifying under process (Conn.) 109a. 
General powers do not extend to dealing in promissory notes (Ky.) 341c; contra (Ky.) 

342e. — recovering on note purchased ultra vires (Ky.) 341c. 

PRACTICE 

Amendment 

may be made to make docket entry conform to facts (Md.) 510c. 



144 BANKS AND BANKING 



PRACTICE— Continued 
Bill of particulars 

is made by affidavit showing demand, with bank book showing amount due (111.) 196c. 
for refusal to pay checks need not show injury to credit (N. Y.) 1065b. 

Default 

on summons served on bank president, who supposed all power was in receiver, should be 
set aside (N. Y.) 964b. 

Motion 

for rehearing on referee's report suspends judgment (Mo.) 715d. 

by cashier, without objection, to vacate appointment of receiver, without showing bank's 
insolvency, and on president's voluntary appearance, should be granted (Neb.) 791a. 

Order 

in insolvency, if issued ex parte, cannot determine title to negotiable paper indorsed for 
collection (N. Y.) 1030b. 

Service 

may be made on bank by stockholder (Me.) 458b. 

by publication, may be made on non-resident debtor of a resident judgment debtor of a 

bank, and judgment and execution issued (Tenn.) 1293b. 
is waived if cashier participates with sureties in suit on his bond (Mo.) 712b. 

Stipulation 

before trial that indorser of note is insolvent is binding (N. Y.) 1022a. 

PREPEREIVCE 

(See Insolvency) 

PBEISIl>E]!lfT 

Action 

by one described as president is deemed an action by the bank (N. Y.) 920b. 

Action should be against principal bank and not against president individually, where 

statute permits actions against branch banks (Ya.) 1371a. 
President may sue as agent on note made to him as president (Neb.) 797c. 

Authority 

extends to employing an attorney for bank (Okla.) 1164a. — controlling defense of suit 
and making change of attorneys (Kan.) 325d. — appointing an agent (Vt.) 1360c. 
— employing broker to sell stock (N. Y.) 1002c. — directing clerk how and to whom 
to pay money in discharge of bank's debt (Md.) 493c. —giving certificate of title 
(Ala.) 9a. — signing checks if such is bank's custom (Tenn.) 1290b. —receiving de- 
posits (N. Y.) 1032a. — indorsing notes held by bank (Mass.) 518a. — releasing debt 
for value (Tex.) 1335a. —giving satisfaction price for a note (N. Y.) 958e. —giving 
security, if authorized to pay debts (la.) 294d. — transferring stock to himself to 
secure debt (la.) 288c. — taking security for debt due bank (Mich.) 597d. —taking, 
as security, a chattel mortgage (Okla.) 1164b. — questioning order in regard to sav- 
ings bank investments, though he applied for order (N. J.) 838b. 

does not extend to agreeing that stock notes will not be enforced (S. D.) 1281c. — agreeing 
that checks will be paid, though drawer has no funds (111.) 221d. — agreeing that maker 
of note need not pay (N. Y.) 985b. — agreeing that he and co-makers of note shall be re- 
leased (Mich.) 610b. — aijig'«J«^ claims to creditors (Ala.) 16c. — assigning raort^&^e. 
to bank as security (N. Y.) 893b. — certifying that notes held by bank are not evi- 
dence of debt (Va.) i374b. —certifying own checks (N. Y.) 927c. — employing special 
counsel if bank is insolvent (Cal.) 88b. — discounting havi^' s own notes (Minn.) 634d. 
— making deed for benefit of creditors (Mo. ) 730a. — expediting or delaying collection 
of debts (Ala.) 17d. —forfeiting charter without stockholder's consent (La.) 395a. 
— indorsing note for accommodation (N. Y.) 909a. — making mortgage for bank 
(N.J.) 823c. — executing coT^oxate. -aotts (Ark.) 55c. — w^^o^za^m^ note, in which he is 
payee, in bank's name (Ark.) 57b. —pledging bank's responsibility for own engage- 
ments (N. Y.) 884d. — purchasing his own hsLnk's stock (N. Y.) 1023c. —purchasing a 
note of insolvent bank by his check on the bank (Mo.) 763a. — purchasing land beyond 
scope of director's resolution (Wis.) 1422d. —purchasing land without approval of 
board (Md.) 505c. —releasing claims (R. I.) 1252a. —selling notes (Neb.) 774d. 
— selling bank's safe for bank's debt (Kan.) 317c. — transferring bank's securities 
(Mass.) 519c. — waiving service of summons and entering confession of judgment (Neb.) 
807a. — waiving obligation attached by law to indorsement (Dak.) 125d. — acts be- 
yond the composition agreed to by a creditor (Minn.) 663a. — indorsing a trust deed, 
the object of which having been attained, the objection is immaterial (Md.) 500b. 

to offer reward is presumed (111.) 235a. 

Bank bound by 

ads within scope of president's authority (Mo.) 709a, (N. Y.) 984a, (Okla.) 1164b. —in 
dealing with third parties (la.) 309a. 



INDEX 145 

, PRESIDENT— Continued 

Bank bound by (continued) 

assessment and levy returned by president (Kan.) 321a. 

presidents assignment of its note and mortgage unless shown to be unauthorized by 
directors (Ind.) 281c; contra if it is discharge of mortgage made to him (N. Y.) 1072b. 

bill of exchange signed by president alone (Ind.) 455c. 

personal certificate for a deposit in form previously acquiesced in, as creating a bank 
obligation (N. Y. ) 990a; contra on certificate signed by him for private loan (Pa.) 
1210a, or by certificate from his firm (Pa.) 1215c. 

indorsement (Ind.) 281b. — ^j/ bank by "B, Pres." (111.) 97c. — induced by his act (Pa.) 
1221a. 

knowledge obtained by president, assigning stock falsely marked "Paid" (Ga.) 177c. 
— in course of duties (la.) 309a, though acquired without scope of office (N.Y.) 981a. 
— as to bankrupt's insolvency, and such knowledge imposes duty to notify other em- 
ployees (N. Y.) 995a. 

giving note of bank and paying as indorser (N. Y.) 890c. 

^a^jKg- «ofe merely to increase bank's apparent assets (Tenn.) 1297c. 

note given and discounted by president though not protested (N. Y.) 1071a. 

mortgage given to take up one made to president (Cal.) 79c. 

neglect to give notice of non-payment of check when he acts as notary (Neb.) 782b. — to 
examine a writ (Mass.) 590a. 

notice to president (Neb.) 771b; contra (Ala.) Ic. — o/"any defense to paper discounted 
if he actually participated in discount (N. C.) 1118d. — that draft was indorsed with- 
out consideration (N. Y.) 1005b. — o/" protest (Wis.) 1401a. Contra by notice received 
as an individual (111.) 206c; (Wash.) 1382b. 

pledge to bank by third person of note on which president is maker (N. C.) 1123d. 

allowing overdrafts (Mo.) 767a. 

gimng receipt in own name for change of securities (N. Y.) 963a. 

instrument showing execution in bank's business, though without seal (N. Y.) 958e. 

promise stopping the running of Statute of Limitations (Tenn.) 1307a. 

sale of pledged stock by direction of bank but without specific instructions (N. Y.) 984a. 

statements, while acting for bank (Ark.) 60c, (Tenn.) 1297c. 

promise to pay amount of assigned deposit to assignee (S. D.) 1275a. 

transfer to one as president (N. Y.) 901b. 

permitting ycesKAt-at to exhaust trust funds (Mich.) 623b. 

wrongful act of president (Mont.) 769c. — when done within scope of his authority (N. Y.) 
981a, 984c. — when trustees leave everything to him, though it might have occurred 
if they had not been negligent (N. Y.) 988d, and knowledge by directors of fraudulent 
conduct is unnecessary (Ark.) 60c. 

Bank is not in pari delicto with president fraudulently appropriating funds (R. I.) 1251d. 

Bank is not chargeable with participation in discount for unlawful purpose (N. J.) 844b. 

Question of whether bank is bound is for jury, where property has been given up and 
check accepted on president's promise (111.) 221d. 

Bank not bound 

by mere admission of president (Ala.) 30b. 

by bond signed by him (Kan.) 332a. 

by check drawn and paid by president's direction where there were no funds (N. C.) 1117b. 

by presidents gift of its funds (Neb.) 786b. 

by guaranty showing on its face it was made by president (Mich.) 607d. 

by president's knowledge obtained as a mere individual (111.) 206c. — while acting fraud- 
ulently without benefit to bank (La.) 455d. — and undisclosed, when his interest is 
adverse (Mass.) 582d. — 5j)/ fraudulent intent in drawing out deposit as executor unless 
acting as bank (S. C.) 1271c. —of want of consideration of accommodation note 
discounted by him with bank (Mass.) 587c. 

by m.ortgage to president of de facto bank unless afterward ratified (N. Y.) 879b. 

by payment of money to president regardless of place and circumstances, and from which 
jt receives no benefit (Ind.) 277a. 

by presidents representations beyond its business interests (N. Y.) 991c. — made in trans- 
acting his private affairs (Neb.) 772a. —falsely made as to solvency (Minn.) 644d. 
— that time vrill be extended, if time is not fixed and there is no consideration (S. D.) 
1280c. —orally made that check will be paid if retained a few days (Pa.) 1233b. 

to president for repairs made by him on bank building without authority (Neb.) 774d. 

Bank bound for ' 

its property in president's possession (Wis.) 1403d. 

Compensation 

cannot be fixed by resolution made at proceedings in which he takes part (Cal.) 74c. 

— by his own vote (Cal.) 80d. 
if fixed by directors, who have discretion, is binding, though unreasonable (Me.) 476c. 
not allowed of commissions on loan to himself without special agreement (N. Y.) 878b. 
President is presumed to act gratuitously, in absence of vote or agreement by directors 

(Mass.) 547d. 



146 BANKS AND BANKING 



PRESIDENT— Continued 
Compensation (continued) 

Promise to compensate is not implied by president's acts outside his duties, though for 
bank's benefit (Mass.) 566d. 

Definition 

President of bank is an officer under R. S., ch. 126, sec. 27 (Mass.) 533a. 

Election 

as president is renunciation of any incompatible office (N. Y.) 972d. 

may be by majority of votes cast, if majority of directors are present, though a majority 

of all directors do not vote (Va.) 1392c. 
of president is Yoid if director voted for himself as president (Va.) 1372c. 
Illegal voting of fraudulent proxy defeating election is actionable tort (Ga.) 173c. 

Evidence 

is admissible to show president's authority to compromise suits (La.) 376e. — to show 
authority by his acts and general course of business (Me.) 466c. — that certificate 
of deposit was believed to be that of the bank instead of president (N. Y.) 990b. 
— if they are declarations within scope of his authority as an officer (Pa.) 1184b 
— if in form of letters written by president and documents referred to therein (S. D.) 
1275a, (Pa.) 1181b. — o/" other transactions as trust administrator of maker of bill 
(Miss.) 687b. — that one officer received money on loan negligently made (Mich.) 
630e. — o/ value of collateral taken by other banks (N. Y.) 1092c. — o/" bank's account 
books against president (R. I.) 1252a. 

is not admissible of president's declarations if not made in course of bank's business (la.) 
309a. — of declarations if made as to past transactions (Me.) 476b. — of declarations 
if not a part of res gestae (Md.) 493c. — of declarations, an expression of opinion 
as to liability (Mich.) 609a. —to show bank liable on president's guaranty (Mich.) 
607d. — to show his want of knowledge where teller has notice (N. Y.) 1035b. 

of director's vote not to increase salary, though unknown to president, is conclusive that 
no contract express or implied arose (Mass.) 566b. 

raises presumption of fraud if it shows president procured funds under guise of loans and 
overdrafts (Minn. ) 646c ; contra if note and mortgage were assigned by president for 
his own debt (N. Y.) 956. — that purchaser of laud knew bank was required to give 
bond, if bank is shown to be a state depository (Ga.) 163a. — o/"payment, if it shows 
president's acceptance of depositor's check in favor of bank (Tenn.) 1299c. 

raising presumption that president, an indorser, was not present when directors resolved 
that note was still due can only be rebutted by positive proof (Va.) 1376b. 

that mortgage was signed by president under bank's seal, makes mortgage prima facie 
lawful (N. J.) 823c. 

that president signed contract not shown to be outside bank's business makes act prima 
facie that of bank (Kan.) 334c. 

that bond was under president's seal and that his affidavit was attached is prima facie 
evidence of authority to execute (N. Y.) 1077c. 

that president issued certificates without authority must be given by receiver of insolvent 
bank (Neb.) 782a. 

of contract regular on its face, under bank's seal and signed by president and secretary, 
makes contract admissible against bank (Kan.) 334c. 

of payment \% shown by receipt signed by president personally (Pa.) 1172b. 

of title of president must be shown by. every fact and document sustaining it (Ark.) 42a. 

T^aud 

to induce customer to deposit, knowing of insolvency of bank (Ky.) 368c. 
in president's selling stock, is a question for jury (Ky.) 370c. 

not presumed from president's assigning note and mortgage for own debt (Mass.) 956b. 
of president in transferring bank's assets, does not make it necessary for receiver, dis- 
affirming transfer, to restore stock sold by him (R. I.) 1251d. 

Indemnity 

for loss suffered while acting in course of agency should be made (N. Y.) 1071a. 

Knowledge 

is presumed as to truth of president's statements as to bank's condition (Ky.) 372c. 

— as to bank's false statements (Ky.) 368a. 
of bank's condition, is not conclusively presumed in criminal action (Kan.) 326a. 
sufficient to put him on inquiry should be considered by jury in determining whether he 

was grossly negligent (Ga.) 169d. 

Liable for 

appropriating bank checks for own use and paying by checks on its depositories (N. Y.) 
972a. —bank's funds to purchase stock (N. Y.) 1023a, —funds for any purpose, and 
cannot set up his illegal conduct as a defense (Va.) 1375b. 

being party to misappropriation of bank's funds (Neb.) 782c. 

each collection made by him, without bank making demand (Ga.) 148c. 

bank's contract not under seal (Ky.) 342a. 



INDEX 147 



PRESIDENT— Continued 
Xiable for (continued) 

inducing purchase of stock and remedy is action for deceit, if it is shown lie knew the 
falsity of his statement (Ky.) 370c. 

receiidng deposits, knowing of bank's insolvency, though he did not receive them person- 
ally (la.) 300a, but he is not criminally liable (Kan.) 335c. 

having drawn money on fictitious notes (N. Y.) 928d. 

guaranteeing note signed in ofl&cial capacity unless he shows bank was bound (S. D.) 1382c. 

indorsing note alone (Ga.) 140b. 

allowing irresponsible person to draw without security and such claim may be setoff in 
his suit for dividends (Mich.) 609a. 

individually and cannot release such liability without consent of stockholders and direc- 
tors (Neb.) 800a. 

loan to his own firm (Ga.) 172a. 

misfeasance or nonfeasance as to duties (N. Y.) 1092c, 1099b. 

negligence or fraud causing loss of funds (Tex.) 1334a, but mere negligence in receiving 
deposits in insolvent bank is not a crime (Kan.) 332d. 

not knowing bank's condition and making false statement in regard to the same, though 
made in good faith (Tex. ( 1329b. 

mctking loans negligently, though in good faith (Mich.) 630e. 

failure to use great care in verifying statements as to bank's affairs (Ky.) 368a. 

penalty for failure to furnish city a list of bank's stock and holders (Mo.) 701a. 

making false report of bank's condition (Neb.) 803a. 

making unauthorized sale if bank prove title and president's possession (Ga.) 141c. 

Not liable 

to indictment for acting as money broker without license, where done for bank (Mo.) 709a 

Practice 

Bank may sue in own name on note pa.ja.hle to president and directors (Ala.) lid. —put 

in hands of president (Pa.) 1172b. 
President' s certificate is necessary to jurisdiction under summary proceedings (Ala.) 6a. 
Notice of motion by president is valid (Ala.) 17c. 
On indict'>nent of president of insolvent bank, challenge of juror having opinion as to 

solvency should be allowed (Kan.) 332d. 

Bati&cation 

of assignment of note by president to cashier may be made by directors (Mo.) 753b. 

of draft made by president binds bank ( Pa. ) 1174a. 

of president's refusal to transfer stock is shown by bank's defending suit to compel such 
transfer (N. Y.) 870b. 

is inferred from long silence after knowledge ('Col.) 100b. 

of surety bond is shown by vote to accept sureties and by holding bond (Mass.) 522a. 

is shown by bank's retention of benefits of president's misconduct and bank is bound 
thereby (Ga.) 145b, (Neb.) 772b, 787a, (N. Y.) 1009c, llOld, (W. Va.) 1392d. 

of teller's agreement with president is not shown by director's knowledge of teller's em- 
ployment (N. Y.) 960b. 

of forgery is not shown by receipt of proceeds of forged notes (Kan.) 328d. 

o/" fifeifrf made by president for creditors is not shown by motion to set aside (Mo.) 730a. 

after judgement for sale of land deeded by president for creditors does not aflfect lien 
(Mo.) 730a. 

Signature 

of president is necessary to notes of bank (Mass.) 520e. Contra, as to negotiable notes 

drawn or indorsed by bank (Tenn.) 1292c. 
by president and cashier to certificates of deposit is not required by sec. 21, ch. 250, 

Laws of 1838 (N. Y.) 918b. 

"Witness 

President is competent witness to prove loan and execution of a mortgage (Ala.) 23a. 
President's competency as witness on bond is not affected by his contingent liability in 
canceling same (Me.) 466a. 

PRIORITY 

(See Insolvency, Trusts) 

PRIVATE BAIVKS 

(See Banks) 

PROFITS 

Estimation of profits of a bank cannot be made on value of unsold bonds (N. Y.)|1014c. 



148 BANKS AND BANKING 



PROMISSORY JTOTE 

Accommod ation 

Maker 

Discharged by fulfillment of condition of use (N. Y.) 920c, (Wis.) 1406c. —usurious 
discount (Me.) 471c. — taking new note for balance under agreement with holder 
(S. D.) 1281d. -^misuse of collateral (Tex.) 1327b. 

Not discharged by indorser's release (Pa.) 1209c. 

Liable for full amount where pledged as collateral, though less is secured on note- 
(N. Y.) 949c; contra (La.) 435b. — to bank discounting without notice (Mass.) 
587c, (Mich.) 633b. —to accommodation indorser, not being cosureties (Mich.) 
622b. —to indorsee with notice (Mich.) 605e. 

May defend against borrower (N. ¥.) 985a, and recover proceeds of note (N. Y.) 
873b. —djc setting up accommodation (Ky.) 343a. —against receiver (Pa.) 1241c. 
— OM paper given to swell bank's assets and not negotiable (la.) 301b, (Mo.) 766c. 

Estopped to plead his own fraud (Mass.) 543a, or illegality as against innocent holder 
(N. Y.) 1022a. 

Not liable to bank, indorsee of president to whom note was given to swell bank assets- 
(Tenn.) 1297c. 
Holdef 

may use accommodation note in any legal manner (Ky.) 369c. 

cannot be prejudiced by statement of previous holder (N. Y.) 1094c. 

not responsible for unauthorized use by payee (Ark.) 61d. 

is bona fide, when surrendering collateral notes in exchange for accommodation notes 
(Ark.) 56b. 

may recover against sureties (Ark.) 61d, or pledgor (K. Y.) 949c, or member of part- 
nership, though note indorsed without his consent (N. Y.) 869a, or against maker 
whose blank note has been wrongfully filled in (Ohio) 1151a. 

after maturity has only equity of prior holder (Pa.) 1241d. Evidence of accommo- 
dation is inadmissible against him (Pa.) 1236a. 

Indorser 

liable, knowing proposed use of note (Mich.) 633b. — if note was disposed of by bank 

at which it was to be used (Mass.) 572b, or if indorsement was procured by fraud 

(Mass.) 589d. — when sued by holder who purchased to relieve maker (N. Y.) 920a. 
discharged hy cx^dSt to hoXAex (Tenn.) 1305b. 
may recover against accommodation maker (Mich.) 622b. 
m.ay set q^ usurious interest paid to a national bank (N. Y.) 983c. 
cannot be subrogated to rights of discounting bank, after recourse is barred by Statute 

of Limitations (Pa.) 1183b. 
Presumption of accommodation not raised as to second indorser by discount of note 

by member of firm which was first indorser (Mass.) 562c. 
Cot\sideraiion 

Credit to another (Ark.) 61d, (111.) 206a. 

Renewal (Me.) 484c. 

Advance of money (Mass.) 543a. 

Prior debt is not valid consideration (Ark.) 56b, (N. Y.) 1032c. 

Note is prima facie evidence of consideration (Mass.) 543a. 

Legality. Accommodation note is not fraudulent or unlawful (Mo.) 766c. 

Alteration 

What constitutes. Addition of "with interest" (N. Y.) 1054b. Cancellation of in- 
dorser's name (N. Y.) 1032c. Not constituted by addition of words "at G Bros., New 
York, Jan. 10-13" (Mo.) 705a. 

i!/a/f;'M/ a/ferai?zo« releases subsequent non-assenting parties (Mo.) 735a, 736a, (N. Y.) 
1032c, unless holder shows circumstances allowing recovery (La.) 408c. 

Evidence of alteration admissible under general denial (Mo.) 735a. 

Plea of alteration insufiicient to raise an issue (S. D.) 1274c. 

Ratification. Joint maker cannot complain that blanks are filled in by co-maker (Mo.) 
735a. Claim by bank ratifies alteration by its agent (Mo.) 736a, (S. D.) 1274c. 

Attorneys' Fees 

may be fixed in action on note providing therefor (Miss.) 689e. 

should be allowed if reasonable, on note providing therefor (Ind.) 260b. 

Cancellation 

Rebuttable presumption of payment is raised (Ga.) 161b, (Mo.) 698c, (N. Y.) 883a. 
Renewal does not import cancellation (la.) 303a. 
Equity has jurisdiction (Mich.) 620b. 

Certification 

Effect. Renders bank liable to bona fide holder until discharged by Statute of Limit- 
ations (N. Y.) 926d. Bank cannot pay without direction (111.) 191d. 

Mistake. Bank may recover from payee and hold indorser (N. Y.) 944a, 1032b, but is 
liable for paying note after notice of mistake (N. Y.) 1097d. Bank may correct mis- 
take (Md.) 508b. 



INDEX 149 



PROMISSORY NOTE— Continued 
Consideration 

Evidence is admissible (Mich.) 608b, and burden of proof is on holder of accommodation 
*t.note, with notice (Mass.) 543a. 

Failure. Invalid note (Mass.) 541d, (Ohio) 1150d. Note given to support false bank 
statement (Me.) 465c, 475a. Notes given where maker is under no obligation (Me.) 
465c, 486c, (N. Y.) 882d, (Pa.) 1219c. Failure or illegality of consideration no de- 
fense against bona fide holder before maturity (Mass.) 587c, (N. Y.) 969c, (Pa.) 
1209c, 1234a, 1236a. 

Forbearance to enforce legal right is valid consideration (Ala.) 34b, (N. Y.) 1009d, 
1059e, or giving credit and surrendering other paper (N. Y.) 985a. 

Fraud in consideration avoids note (Conn.) lOSd. 

Illegality. Bank notes issued contrary to law furnish no consideration (Ind.) 249a, 
(Va.) 1367b; contra (Ala.) 18b, (Ky.) 344b, Note for stock is supported by con- 
sideration, though forbidden by banking act (Mass. ) 532b. Half interest in charter, 
franchise and business of bank, an illegal consideration (Minn.) 659d. 

Presumption of valuable consideration exists (Mass.) 543a, (Mo.) 764a. —that note 
was given for ordinary debt (111.) 182b. 

Renewals. Extension on former note is consideration for new note (Mo.) 739d, 764a. 
Surrender of former note is consideration for new note (Cal.) 92c, (N. Y.) 1062c, 
(Tenn.) 1298d, or of drafts accepted for bank's accommodation, where note is given 
by directors (Mich.) 602a. 

'Definition 

What is a promissory note. Certificate of deposit (Cal.) 63d, 63e, (Conn.) 113c, (Mich.) 
606b; contra (Mass.) 571c. Sealed instrument (Ky.) 352b. Bankable paper (S. D.) 
1297b. Paper in lieu of bank notes, issued by individual (Ind.) 257e. 

What is not a promissory note. A bond and mortgage on land and slaves (La.) 415d. 

Demand — see Payment 

Discount 

is presumed where note is taken by bank (111.) 206c, (Ky.) 341d, 342b, 344c. 

Definition. Note taken for value in usual course (111.) 206c. Purchase by bank of in- 
dorsed note before maturity (Ky.) 368b. Pro tanto, where bank reftises to discount, 
but permits payee to draw against note (N. Y.) 966c. For credit, bank is not holder 
for value (N. Y.) 986a, (Wis.) 1413a. To extinguish debt, bank may recover on 
note (N. Y.) 871b. Of note given debtor by his creditor to pay another indebted- 
ness, is discount by creditor (N. H.) SlOd. Of note issued for stock, bank is innocent 
purchaser (La.) 416c. Of mortgage note, does not occur when taken as security for 
loan (N. Y.) 1022a. By corporation, not having banking powers is void (Conn.) 
110a. By bank created by legislature, bank may sue on note (Tenn.) 1284b. Illegal 
discount, bank cannot recover against indorser (Mass.) 539a, nor can parties to note 
(N. Y.) 912b. Re-discount before maturity without notice is purchase for value (N. 
C.) 1120a. Check for note not taken up or cancelled is not a discount (Mass.) 538c. 

Effect. Bank merely giving credit on discount for one not indebted to it is not a pur- 
chaser for value (111.) 243d, (Kan.) 316d, (Wis.) 1413a. Bank discounting note is 
bona fide holder (Conn.) 124b, (Mass.) 538b. Discount note is regarded as foreign 
bill of exchange (Ky.) 342c, but not entitled to statutory priority (Ky.) 349d. 
Does not defeat attachment, if discount made with notice (Vt.) 1035d. Mere sign- 
ing of note to be discounted by payee does not create contract between payee and 
maker (Mass.) 524e. 

Legality governed by law at date of discount (Ky.) 345a. 

Interest. Rate depends on period from date of discount (Mass.) 677d. 

Evidence 

Discount subsequent to a guaranty is prima facie proof that it was made on faith of the 
guaranty (Md.) 509a. Negligence or bad faith is not presumed because cashier per- 
sonally made first indorsement (Minn.) 642a. Omission to record note on books of 
bank does not show that it was not rediscounted (Mich.) 622a. 

Question of fact whether discount of note with general indorsement is sale or loan (Minn.) 
652a. — whether there was a previous indorsement (N. Y.) 944d. 

Parol evidence admissible to prove transaction, if note is payable to fictitious or third 
person (Miss.) 665d, to show who is principal and who surety (Mo.) 709e. — in- 
admissible to enlarge scope of note (Pa.) 1242c, to contradict note (Dak.) 125d. 

Intention. Evidence of intended effect of note is not admissible (Mass.) 519d. Intended 
use in payment of corporate debt may be shown (Ark.) 62a. 

Time. Oral evidence as to time not stated in note, admissible (La.) 413b. 

Books admissible to show bank's dealing with note (S.D.) 1274c.- 

Secondary evidence of note admissible where profert is made in declaration and note is 
accounted for at trial (Tenn.) 1301c. 

Execution 

Lex Loci. Law of place of execution and performance governs (Mo.) 704a. 

Proof Execution must be proved by plaintiff (Ark.) 61d. Plea of general issue by 



150 BANKS AND BANKING 



PROMISSORY NOTE— Continued 
Execution (continued) 

makers and indorsers admits execution (Mich.) 607c. Failure to verify answer admits- 
execution (Cal.) 93b. 

Extension 

Agreement must have all the elements of a contract (Pa.) 1244b. Keeping money sent 
as consideration and indorsing it on note does not constitute assent to a request for 
extension (Mich.) 608b. Extension is consideration for a mortgage given to secure it 
(Ark.) 52b. 

EflFect. See Indorser, Discharge. 

Fraud 

No tender of worthless notes necessary before suit for damages (Ark.) 60c. Fraud in. 
acceptance of note avoids note (Conn.) 108b, (Mo.) 699d. 

Guaranty 

Consideration received by guarantor is irrelevant in action by guarantor for conversion 

of notes (N. Y.) 957c. 
Effect. Payee's guaranty transfers title (Wash.) 1384d. Guaranty covers renewals made- 

with guarantor's consent (Neb.) 800a. Unauthorized guaranty is an indorsement 

(Kan.) 332a. 
Extent. Guarantor of maker is not liable for indorser's firaud (N. Y.) 1063d. Guaranty 

"without protest" implies release of indorsers (Pa.) 1219a. Holder may recover- 

against guarantor "without protest," and additional guarantor of note after maturity 

(Pa.) 1219a. 
Guarantor cannot be held after bank changes collateral and extends time (Mich. ) 626d.. 

— until note is due (Kan.) 331a. — where discounting bank knew that proceeds were 

to be appUed to husband's debts (Mich.) 621a. — ^he shows loss of remedy against. 

debtor caused by creditor's laches (Va.) 1333d. 
Setoff. Guaranty of bank on unmatured note cannot be set oiF against claim in receiver's- 

hands (Mich.) 627a. Guarantor's deposit cannot be applied to guaranty (Pa.) 1219a. 

Holder 

Bona. Fides 

Definition. Bona fide holder must give value and acquire note in usual course of 
business (Wis.) 1420d. Time of parting with value by a bona fide holder is imma- 
terial (N. Y.) 889a. Holder is presumptively bona fide holder (111.) 243d, (La.) 
385e, (Mass.) 538b, (Md.) 500a, (N. Y.) 932d, (S. D.) 1277c. Bank discounting 
notes -without notice of fraud is a bona fide holder (Conn.) 124b, (la.) 302a,. 
(Mass.) 589d, (Mo.) 746a, or rediscounting (N. C.) 1120a, or discounting before 
expiration of grace (Kan.) 316e. Bank taking note as collateral, without notice 
(Mont.) 769c. Bank taking notes for antecedent debts (Mass.) 573d, but not if 
taking for security merely (Tenn.) 1289d. Bank taking up note paid by mistake 
(N. Y.) 924a. Clearing house committee is holder for value of note deposited tO' 
secure payment of balances (Pa.) 1235a. Purchaser of notes firom bank, paying there- 
for with check on bank (Wis.) 1422b, or firom collecting bank (N.Y.) 1016b. Trus- 
tees of insolvent bank are holders for value of notes held by bank (Ya.) 1373a,. 
1373b; contra as to receiver (Md.) 515b. 

Insufficiency. Collec-ting bank is not bona fide holder (N. Y.) 931b. Pledgee is not 
holder for value (Wis.) 1420d, nor is pledgee's indorsee (N. D.) 1127c. One who- 
takes negotiable paper under circumstances such as to pu-t him on inquiry is not 
bona fide holder (Mass.) 542d. Bank crediting note to customer is not, ipso facto, 
bona fide holder for value (111.) 243d, (Mich.) 623c,nor as to indorser, is bank 
taking new notes in settlement (Pa.) 1221a. Holder with actual or constructive no' 
ticeof firaud is not bona fide (Mass.) 542d, (N. Y.) 984d, (S. D.) 1276d; but 
this must be more than mere suspicion (Kan.) 316e, (Mich.) 627c, and is not 
presumed fi-om relation of parties (Mass.) 562c. Assignee of one acting ultra -rires 
is not bona fide holder (W. Va.) 1393a. Holder suing on note obtained by firaud 
must show that it had no notice of fi-aud (la.) 302a. 

Effect. No equities against purchaser for value before maturity (Colo.) 106b, (Ga.) 
139d, (N. Y.) 886c, or against purchaser's indorsee after maturity (Me.) 482c. 
Evidence of notice of want of consideration inadmissible (Kan.) 319d, (Pa.) 1236a.. 

Rights. Bona fide holder not afiected by usurious contract of prior parties (Neb.) 
771a, or by fi-aud in inception (Mich.) 623c, or duress (N. Y.) 951d, or illegal con- 
sideration (Mich. ) 612a, (N.Y.) 858c, or failure of consideration (Ga.) 177d. — may 
recover against -the maker enabling prior holders to fraudulently represent that 
note would be discounted (Vt.) 1346c. Bona fide pledgee of firaudulent note can 
recover only unpaid portion of debt for which note was pledged (Neb.) 782b. 
Action 

Possession of note is enough for suit unless mala fide (La.) 379c, (Mass.) 565b„ 
(Me.) 483b, (Mo.) 765a; contra (Ala.) 12b. Real holder may st-- in name of bank- 
discounting note (Miss.) 669e, or in name of nominal payee (Miss.) 665d, 669e.- 
Pledgee may sue at request of o-wner (Mich.) 607c. 



INDEX 151 



PROMISSORY NOTE-Continued 
Holder (continued) 
Rights 

Holder may fill in blank indorsement (Ala.) 34b, or strike out subsequent indorsement 
(Ky.) 342b. — ttccd not prove signature of any party prior to one whom he sues 
(Mass.) 524c. — is not bound by statements of bank as to place where note 
is payable (Mass.) 555e, or by undisclosed purpose of cashier's indorsement (Wis.) 
1406b. — need not allege promise to pay in suit on note to bearer (Ga.) 139d. 
— need not notify makers, where note, payable at any bank, will be presented (Miss.) 
677c. — shares pro rata with holder of another note secured by same mortgage 
(Wash.) 1382c. — may sue on note payable to bearer (Me.) 479c. — is owner of notes 
held as security, while any indebtedness remains (Pa.) 1195a. — may recover 
against indorser of renewal note accepted without notice of indorser's disability 
(Tenn.) 1315c. — m.ay prove claim against insolvent bank, indorser (111.) 220d. 
LiabiWy 

Burden is on holder to establish consideration, when presumption of consideration is 
rebutted (Mass.) 543a. Holder estopped by representations inducing tirior indorser 
to surrender security (Pa.) 1238e. 

Illegality 

Defimtion. Discount in New York by a foreign bank is prima facie illegal (N. Y.) 969c. 
Partial discount of unmatured note by bank is legal (Pa.) 1202b. Note given to save 
criminal from prosecution is illegal (Mo.) 755d, Sealed note given for bills illegally 
issued is void (111.) ISOd. Notes deceitfully issued to conceal impairment of capital 
are void (Mo.) 763b. As between maker and payee, law of place of execution governs 
(Ky.) 357b. 

Effect. No recovery on note taken in violation of statute (Me.) 488c, (Ohio) 1151b ; 
even after repeal of statute (Mass.) 519c, or against indorser (Mass.) 539a, or in 
hands of payee's assignee (Minn.) 659d. — where bank knew that loan was for illegal 
purpose (Ga.) 178a; contra (Tenn.) 1297b. Notes illegally discounted cannot afford 
legal consideration for new notes (Mass.) 541d. Party to illegal discount cannot 
recover proceeds of collateral (Mass.) 539b, but indorsee taking for unlawful purpose 
may use note to collect debt secured thereby (Mass.) 572b. Illegality of malung not 
afdefense to legal indorser (Mass) 585d, nor to maker himself (Mich.) 598d, (N.JH.) 
811b. Illegality of discount by savings bank does not prevent recovery of loan (N. Y.) 
991d, 992a. 

Evidence. Burden of proof of illegality is on one affirming it (N. Y.) 890a. Fraud in in- 
ception may be set up by the makers who are in pari delicto (Mo.) 763b. 

Indorsee 

of bank may sue in name of bank and give security for costs (N. H.) 811a. 

in good faith, before maturity holds free from defenses (Minn.) 645d. 

of illegal note is not innocent (Minn.) 659d. 

Failure of consideration no defense against (111.) 200b, 206c. 

See Holder. 

Indorsement 

Authority. Power of attorney ratifies indorsement previously made (La.) 392a. By 
agent, holder is charged with notice, where instrument refers to agent's authority 
(La.) 411a. "Of any note for me and in my name" includes indorsement of attor- 
ney's own notes (La.) 409c. By cashier is prima facie evidence of authority (Me.) 
460d. By secretary is presumed authorized by course of dealing (Neb.) 783c. By bank^ 
authority must be conferred by board of directors (N. H.) 811a. Vote to sell note by 
savings bank is no authority to transfer by indorsement (Mass.) 563b. 

Cancellation without explanation defeats recovery against subsequent indorser (Ala.) 5c. 

Consideration will not be inquired into in absence of bad faith (Md.) 500b. — is presumed 
when made by banker (111.) 220d. 

Evidence. Indorsement may be proved by serving copy of note and reading original 
(Mich.) 605e. 

Parol evidence cannot vary it (N. H.) 811d. — is adm-issible to show note was not in- 
dorsed when made (Mass.) 553c. — o/" promise inducing indorsement is admissable to 
set it aside (Pa.) 1221a. 

Possession of note indorsed in blank is evidence of title (111.) 197c. — is prima facie 
proof of regularity (Minn.) 636b, though by a corporation (Minn.) 640a. 

Note made to officer of bank as officer is admissible without his indorsement (Mich.) 
608b. 

In blank. Effect is the same as signing check in blank (Ohio) 1151a. By one using 
fictitious name is good (111.) 229b. Liability on, is only contingent until maturity 
(Pa.) 1239a. Passes title on delivery (N. Y.) 883a. 

Obligation on indorsement cannot be waived by officers on note due bank (Dak.) 125d. 

Relation between indorser and indorsee is that of principal and surety (Minn.) 657b. 

Restrictive, when for collection and credit, and notice is given (N. Y.) 1052c. Bank re- 
ceiving notes indorsed absolutely and then for collection may treat latter indorsers as- 
bona fide holders (Md.) 504b. 

Special does not prevent further transfer of note indorsed in blank (N. Y.) 833a. 



152 BANKS AND BANKING 



PROMISSORY NOTE— Continued 
Indorsement (continued) 

Title to note payable to maker's order does not pass without his indorsement (Ala.) 5b. 
—passes where bank indorses by "B, Pres." (111.) 197c. —passes on delivery after 
blank indorsement (N. Y.) 883a. — is imported by fact of indorsement (Md.) 504b; 
prima facie (Mo.) 697a. — is not affected by ultra vires commission charged for in- 
dorsement (N. Y.) 1001a. — «oi jAozcw by prior indorsement, holder's failure to inquire 
is negligence and mala fides (Minn.) 638b. 

■made by bank's notary raises no presumption of transfer as against maker who paid 
usury to bank (Neb.) 779a. 

is valid, on paper attached to note (Mass.) 525a. — if stamped by bank, though not 
signed (Mass.) 568a. 

presumed to be made at date of note (Me.) 460b. 

Indorser 

Discharged by binding agreement between maker and holder effective to prevent suit by 
holder against maker (Miss.) 672c. — by proof of balance in bank applicable to the 
note (N. Y.) 1050c, (Pa.) 1176e, 1227c, but bank is not bound to hold maker's de- 
posit for indorser's protection (Pa.) 1216c. — by guaranty "without protest" (Pa.) 
1219a. — by fraudulent discount (Pa.) 1176d. — by release or misapplication of col- 
lateral (Neb.) 772d, (Tex.) 1327b, but taking judgment on bond does not discharge 
indorser of note secured thereby (Pa.) 1172b; and subsequent indorser is not dis- 
charged by security given by maker or prior indorser (Pa.) 1238e. — by holder's 
failure to demand and protest (La.) 375d, (Pa.) 1224c, (Va.) 1372a ; but contra as to 
undiscounted notes (Ky.) 346d, and as to indorser's asking extension and waiving 
protest after dishonor (La.) 437e. —by holder's failure to notify of dishonor (Mo.) 
696c, (Vt.) 1349c, (Wis.) 1421d, at indorsee's place of business (N. Y.) 854b or within 
a reasonable time (Mo.) 717c, (Va.) 1376b. —by alteration of terms of note (Mo.) 
736a. — by cancellation of prior indorser's name (N. Y.) 1032c. — by extension of 
maker's time without indorser's assent (La.) 393b, (N. Y.) 981b, but must be for 
definite time (Pa.) 1216c. — by tender, to holder, of payment in funds according to 
contract, and refusal (Pa.) 1186a. — by charging indorsers as makers (Mo.) 736a. 

Not discharged by maker's acquiescence in bank's request that funds intended for one 
note be applied to another (N. Y.) 965c. — by mistaken certification (N. Y.) 944a, or 
payment (id.). — by ultra vires acts of bank discounting or purchasing note (Mass.) 
585b, (N. Y.) 994e, (Pa.) 1206a; contra (N. Y.) 853b. —by ultra vires release of in- 
solvent maker (La.) 413d. —by usury (N. Y.) 994e. —by illegality of act of prior 
parties (Mass.) 585d. — by broken agreement for co-indorsement, without notice to 
holder (Mo.) 699a. — by cashier's statement that he would not be held (Dak.) 125d. 
— by insufficient notice, where actual notice of equities is given (Minn.) 636b. — by 
unauthorized charge of discount against maker's account, without actual renewal 
(Md.) 514b. — Aj/ renewal note received conditionally, without indorser's name (N. Y.) 
980d. — by holder's forbearance to sue (Pa.) 1172b. — by holder taking maker's as- 
sets to pay debts, without indorser's assent (Wis.) 1411b. — by notice to "estate" of 
deceased indorser (N. Y.) 1058b. — by failure to demand payment from representatives 
of deceased maker (Pa.) 1176a. — by failure of notice (N. J.) 833a, though diligent 
inquiry was made and notice sent to place where note was dated (Miss.) 680d, or 
where both indorser and maker became public enemies before maturity (Va.) 1375c. 
— by four months delay in suing maker (Minn.) 642c. — by release of another indorser 
on renewal judgment notes (Va.) 1378c. — by lack of consideration for cashier's note 
indorsed to make deficit good (La.) 403d. 

Liability. Indorser is liable to bona fide holder on failure of payment by maker (Mass.) 
560a, (Mo.) 694b. — though note indorsed, ultra vires, by director of maker (Me.) 
473a, but action cannot be commenced until notice of dishonor might have reached 
him (Pa.) 1171c. — to holder of accepted renewal notes, though indorsed under dis- 
ability (Tenn.) 1315c. — to holder misled by fact that maker was inporser's agent 
(N. Y.) 912a. No privity between prior indorser and collecting bank to which another 
indorser entrusts note (La.) 387a. Liability not affected by limitation of bank's 
power to purchase (Mass.) 562c. 

Rights. Indorser may recover from bank neglecting to make proper demand (La.) 388a. 
— viay sue maker or prior indorsers, though he has paid prior holder (La.) 379c. — can- 
not rescind contract of payment (La.) 403d. — m,ay recover from subsequent indorser 
whom he has paid in ignorance of release of security (La.) 415a. — entitled to have 
demand made and notice of protest when holder learns that assets are insufficient 
(N. Y.) 1096b. — subrogated to creditor's rights against prior parties, after full pay- 
ment (Minn.) 657b. — in equity may have maker's funds applied to note (Del.) 
127b. — m,ay share pro rata in security for maker's debts (N. Y.) 919c. — in equity, 
treated as surety (Del.) 127b. — may notify only those prior indorsers whom he intends 
to hold liable (La.) 387a, 397c. — may buy a note proved in insolvency as claim against 
maker (Mass.) 543c. Judgment of seizure cannot be obtained by bank against indorser 
without notice of demand to indorsee (La.) 375c. 

Joint and Several 

if initial words are "I promise to pay" and note is signed by two or more (La.) 378d. 
Setoff against one maker is admissible (111.) 214c. 



INDEX 153 



PROMISSORY NOTE— Continued 
Judgment note 

for debts for which maker is liable, applies only to existing debts (Pa.) 1242c. 
Amount of attorney's fee is not question for jury (Pa.) 1217c. 

Maker 
Defenses 

Maker may set up failure of consideration (Cal.) 75c, (la.) 301b, (Mo.) 766c (N. Y.) 
875c, even if note is a renewal (Ga.) 176c; or where failure of title is partial, if 
agreement is for perfect title (S. D.) 1276a. — representations of holder (Vt.) 1354c. 
— ultra vires acts of holder (Ky.) 341c; contra, where action is for benefit of in- 
dorser (Mass.) 560c. — duress and collusion, except as against bona fide holder 
(N. Y.) 951d. —fraud (la.) 302a. —any defense available against payee, where 
action is brought by assignee, under statute (Ky.) 359a. — in suit by trustee of 
bank to pay debtor, payment of all debts by trustee (Miss.) 682c. 

Maker cannot set up ultra vires acts of holder (Mich.) 605e, (N. Y.) 1059e, (S. D.) 
1277c, or of payee (Miss.) 676b, or question payee's legal existence (Neb.) 
776a. —illegal ads at holder (Me.) 488c, (Pa.) 1223c, or of payee (Mo.) 703a, 
(N. H.) 811b. — his own illegal act without restoration of consideration (Me.) 
488c. —usurious discount (N. J.) 838c, (Pa.) 1234a. —failure of consideration 
as against bona fide holder (Mo.) 751d, (Pa.) 1234a, or partial failure, as 
against payee, due to depreciation of payee's bank bills before maturity of note 
(Miss.) 669a. — want of consideration between maker and indorser (Ky.) 344c; or 
as against payee, where note was made to evade statute (Ga.) 163c. — misappropria- 
tion of proceeds by maker's agent (Fla. ) 136d, or misuse of note as against 
bona fide holder (Mont.) 769c. —pendency of foreclosure suit on another note 
securing same debt (Cal.) 93b. — subsequent forfeiture of charter of holder bank 
(Ky.) 345b. —payee's fraud (Mass.) 532b, (Mo.) 717d. 751d. —parol agreement 
by another to pay the note (Ore.) 1167b. — mere denial of holder's title (Mo.) 
702b. —possibility of defaulting cashier's failure to enter credit of deposits (Mo. ) 476b. 

Discharge 

Maker discharged by agreement by payee of unindorsed note to accept another 
person in maker's place (Pa.) 1247b. — by erasure of his name by comaker, with 
knowledge of all parties and for consideration (Tenn.) 1318d. 

Maker is not discharged by deposit of money to pay note (111.) 191d, (Pa.) 1175a. 
— where bank wrongfully refuses to pay it (Mich.) 606d; contra (N. Y.) 907a. 
— by bank's failure, by mistake, to pay (Pa.) 1195a. — by mistaken cancellation 
(Mo.) 698c. — by addition to note, stating place of payment (Mo.) 705a. — by 
holder's receipt of security from indorser (Mass.) 549c. — by release, for con- 
sideration, by holder's teller (111.) 191c. . — by holder's failure to demand and pro- 
test (Va.) 1372a. — fry acceptance of certificate of deposit, instead of money, from 
discounting bank (Miss. ) 666b. — by indorser's payment of judgment if separate judg- 
ment is also entered against maker (N. Y.) 902a. — by application, by holder bank, 
of indorser's deposit (Mass.) 561a. ■ — by part payment and release of indorser 
(Mass.) 526c. — by usurious character of subsequent discount (Ohio) 1154b. — by 
want of consideration, where holder has changed his position in reliance on maker 
(Wis.) 1425b, or where notes were made to secure bank's doubtful assets (N. Y.) 
1060c. 

Etndence 

Admissibility . Evidence of accommodation is inadmissible against bona fide holder 
(Pa.) 1236a. Evidence of conversation between maker and indorser, when note was 
made, is inadmissible in action by payee (Pa.) 1173b. Evidence that makers were 
not to be liable according to tenor of note, inadmissible (Mich.) 610b. Apparent 
maker may show by parol that he was a surety (Wash.) 1384e. Depositions of 
maker and surety inadmissible on ground of interest (Pa.) 1172b. Testimony of 
joint defendant, that he is principal debtor, admissible (Ohio) 1142a. 

Burden of proof on maker to show purchaser's lack of good faith (Ga.) 177d. — to 
show notice to bona fide holder of any defense (N. C.) 1118b. 

Presumptions. Maker presumed to be solvent (N. Y.) 934a. No presumption of iden- 
tity where name of maker and indorser the same (Ala.) 5c. 

Com.petency of witness. Maker is competent witness in action between indorsee and 
indorser (N. Y.) 854d. Maker cannot testify to usury invalidating note (Mass.) 
521b. Maker may state conversations with deceased guarantor (Vt.) 1354c. 
Maker is competent to prove that note was given to support false bank state- 
ment (Me.) 475a. Maker may testify as to title to note (Ga.) 142b. 
Lia.bilHy 

Maker's capacity determined by law of domicile (La.) 416d. Maker estopped to deny 
consideration for note to secure doubtful assets of bank (N. Y.) 1060c, or to deny 
legal existence of payee bank (Ky.) 352b. Maker and indorser cannot be jointly 
sued at common law (Ky.) 341d. Maker, as to third parties, is agent of holder 
surrendering collateral to him (Ga.) 178b. Maker individually liable on note to 
pay corporate debt, not couched as corporate obligation (N. Y.) 1048d. Maker 
held as principal, though creditor knew, as between parties, he was surety (Cal.) 



154 BANKS AND BANKING 



PROMISSORY NOTE-Continued 
Maker (continued) 
Liability (continued) 

81c. Maker's obKgation to bank for loan to which he was entitled under its 
charter, is same as any other debtor's (La.) 393c. 
Setoff 

Maker may set ojff admitted credit as against payee (Ky.) 345b. 

Maker cannot set off wrongful possession of note (Ind.) 281c. — loss sustained by 
refusal to sell stock, used as collateral, for whose purchase price note was given 
(Ga.) 163c. — claim against bank assigned to him after appointment of receiver, 
in suit by receiver (Ga.) 162d. — interest paid on other notes on account of bank's 
delay (Mo.) 760a. Maker, to secure setoff, cannot compel an indorsee to take pay- 
ment from collateral deposited by indorser indebted to him (N. Y.) 999b. 

Maturity 

Definition. Note payable on demand at certain place becomes due only on presentment at 
that place (N. C.) 1106c. Suit cannot be commenced on last day of payment until 
after business hours (Me.) 471b, or bank hours, (Miss.) 674a, and constructive demand 
must be made at close of business hours (Miss.) 674a. 

Effect. Note cannot be paid before payment due (Conn.) 111c, and only that part of in- 
stalment note already due can be recovered (Ala.) 10b. Accommodation note dis- 
counted after maturity gives bank no higher equity than prior holder (Pa.) 1241d. 

Grace. Note is not due before expiration (Conn.) 111c, (111.) 202c, and suit brought on 
last day of grace, without demand, is premature (Me.) 471b. Note payable at bank has 
three days of grace (Conn.) 108b. Note payable "first day of May, next fixed" is 
without grace (La.) 375d. Allowed on note lacking words of negotiability (Md.) 498a. 

Interest, from maturity, governed by lex loci (Miss.) 682b. 

Overdue. One taking note after maturity has no higher equity than prior holder (N. Y.) 
979b, (Pa.) 1241d, and setoff good against payee is good against him (Wis.) 1421a. 
Rate of interest, if unspecified, same after maturity as before (La.) 407a. To hold 
indorser of overdue note, indorsee must demand payment within reasonable time and 
give immediate notice of refusal (N. Y.) 1096b. 

What causes. Insolvency of bank holding unmatured note, if maker so elects (N. Y.) 1064a. 

^Negotiability 

not destroyed by recital in note that it is secured by pledge (La.) 418d. — by payor 
being in another state (Va.) 1372a. — dji' promise to pay a certain sum "in part pay- 
ment for engine remaining owner's property until amount secured is paid" (N. Y.) 
991b. Note without negotiable words is within Statute of Anne (Md.) 498a. 

Non-negotiable. Note providing for attorney's fees, not negotiable (Mont.) 769e; contra 
(S. D.) 1279d. Defense of bona fide assignee vrithout notice, not available (Ohio) 1139a. 

ITotice of Dishonor 

Sufficiency. Knowledge of dishonor is notice (Pa.) 1182d; contra (Minn.) 643b, (Tenn.) 
1296c. Notice in accordance with known custom is sufficient (Mass.) 517b, 517e, 534a, 
(Md.) 492a, but not in case of note not payable at the bank (Me.) 475b, and usage 
cannot limit time (Mass.) 529c. Notice merely informing indorser of protest is sufficient 
(Md.) 492a. Notice of dishonor may be mailed to indorser where he is in habit of 
receiving mail (N. Y.) 895c. Notice given a bank by the holder of a note ignorant of 
bank's assignment is sufficient (Mo.) 726c. Demand that indorser keep an agreement 
by restoring money improperly withdrawn, is not a notice of dishonor (N. Y.) 1096b. 
Notice sent to indorser's last residence without inquiry as to change is not sufficient 
(Mass.) 532a. Bank is not bound to give notice to first indorser for benefit of second, 
nor in order to assert its rights against him (Va.) 1376d. 

Time. Each indorser has one day in which to notify prior indorser (Mass.) 529c, (Me.) 
473b. Indorser discharged when notice was sent to another to deliver to him and was 
not received for three days (Mo.) 717c. Indorsee of overdue paper must demand pay- 
ment within reasonable time and give immediate notice of refusal (N. Y.) 1096b. 

Waiver. Promise of holder to pay to discounting bank waives notice of dishonor (Pa.) 
V2,2^a^. Promise of indorser to secure notes secured by a trust deed, waives notice 
(Va.) 1376d. Fact that indorser is also collection agent is waiver (Ark.) 58c. 

Evidence. Book entry is admissible to prove notice of dishonor (Mass.) 525b. Foreign 
notarial certificate of protest no proof of dishonor to deceased indorser (Yt.) 1364c. 

Partnership 

Firm. 

Bound by partner's indorsement in firm name (Ky.) 345c. — 6)/ partner's indorsement, 

where making and indorsing firm had same members (Pa.) 1182d. 
Not bound by unauthorized signature of firm name by partner as against one having 
notice that note was accommodation paper (N. Y.) 862b. — by note indorsed by 
one of two partners in firm name and credited to his individual account (Pa.) 
1239b. — by partner's indorsement of firm name to secure private debt (Pa.) 1239b. 
— 6j/ renewal of firm note after dissolution (N. Y.) 874b. Whether credit is given to 
firm by notes made by one partner and indorsed by another is question of fact 
(Conn.) 123a. 



INDEX 155 



PROMISSORY NOTE— Continued 
Partnership (continued) 
Partner 

Bound by accommodation indorsement of firm, though made without his consent 

(N. Y.) 869a. 
Not bound by partnership note misappropriated to personal debt of another partner 
(Mass.) 524e. — by notes outstanding when he entered firm (Minn.) 647a. Burden 
is on holder of firm note taken as collateral to show that it was given with consent 
of all partners or for firm debt (Mass.) 563a. 

Payee 

estopped to deny incorporation of payor, after transferring note to payor (Ky.) 361c. 

Evidence. Note naming bank as payee is sufficient evidence that it was made to the 
bank (Ark.) 46b. Parol evidence is admissible where the issue is payee's right to en- 
force note (Minn.) 663c. 

Rights. Bank giving credit for note becomes payee's debtor (Kan.) 319d. — may sue as 
payee on note given it, indorsed and returned by indorsement (Mo.) 694f. — may 
recover in equity, though charter has been annulled (Ark.) 49a. 

Payment 

Application must be made to principal until paid (Kan.) 329a, or pro rata to principal 
and interest (la.) 290b. — must be made to notes, of amount received from indorser 
for release (Mass.) 526c. — cannot be made to overdue note, when received on condition 
of applying it to another note or returning it (Me.) 477b. —sannot be required by 
indorser against instructions of depositor, though deposit made for indorser (N. Y.) 
957a. — need not be made from deposit of first indorser (Pa.) 1238e. 

Conditional. Custom fixing time when conditional payment through custom house be- 
comes absolute, is valid (Mass.) 595c, 596d. 

ZP^warerf sufficient when note left at bank where payable (Mass.) 525a, (N. Y.) 862c, 987c; 
or if made after bank hours on person authorized to pay (N. Y.) 967a. — necessary 
to enable bank to recovery from payee (N. J.) 844c. — unnecessary if no funds at 
place of payment (Pa.) 1193c. 

Duty of bank, having funds, to pay note at maturity (N. Y.) 1045c, 1050c, (Pa.) V2\1a^\ 
contra, in absence of instructions or previous dealings (Tenn.) 1310a, and where note 
is not payable at bank holding deposit (Pa.) 1226a. One receiving funds without 
notice that they are to be paid to payee, in discharge of note, is not liable for payee's 
misapplication (Ore.) 1169b. 

Jiffect. Where secured by deed of trust discharges the deed (Va.) 1378a, but maker of 
note secured by mortgage, pays, without surrender, at his own risk (Mich.) 631b. 
Transfers debt to bank paying note and may be set off on account (N. J.) 844c. Is 
voluntary when made by unnotified indorser and gives no right of action against col- 
lecting bank (Pa.) 1224c. Where made before maturity imports consideration for 
release (Tenn.) 1318d. 

Evidence. Book entries admissible to show discharge of note (N. Y.) 894b, or deficiency 
in payment (N. Y.) 939c. Presumption of payment of note does not arise from pay- 
ment of money to principal after maturity (Mo.) 709e, or from withdrawal of money 
by maker (Cal.) 71e. Presumption of non-payment arises from possession of notes 
by bank's receiver (N. Y.) 928d. Stamp used by bank on paying note is admissible 
to prove date (Mich.) 622b. 

Extension discharges guarantor where collateral is also changed (Mich.) 626d. —granted 
where creditor knowingly receives interest in advance, without expressly reserving right 
to sue (Wash.) 1384e. — not granted by officer of collecting bank (Cal.) 71e, or where 
time is not fixed and there is no consideration (S. D.) 1280c. —does not make remote 
indorser granting it liable to holder, if ignorant that collection agent holds funds to 
meet it (Ohio) 1160b. Contract is not supported by payment of or promise to pay 
interest due (Ind.) 267e. 

Mistake. Payment, on due day, of dishonored note is under mistake of fact (Mass.) 
567b. Note marked "paid" by mistake, but later protested in due time, is not paid 
(Mass.) 565b. Payment, by mistake, by bank where payable, does not discharge 
indorsers (N. Y.) 924a, 944a, or sureties (N. Y.) 913c. 

Place. Place of payment must be designated in a note to make it payable there (Me.) 
467b, but note payable "at" a bank is payable "in" a bank (Ind.) 251b. When 
payable at unincorporated bank is not payable at bank within meaning of 1 R. S. 
1876, p. 636, sec. 6 (Ind.) 264d. 

'Tender. Where proceeds of note are to be applied to judgment, tender of amount by 
maker is condition precedent (Ark.) 49d. 

What constitutes payment: As against general creditors, administrator may satisfy in- 
testate's maturity note by check (Va.) 1369a. Credit by collecting bank to holder 
(Tenn.) 1305b. Depreciated currency satisfies note when payable therein, or when its 
consideration was such (Ky.) 350b, but note can be so discharged only when tender 
is made on day of maturity (Ky.) 348a; contra (Miss.) 678b, and if paid in specie, 
maker should be allowed the difference (Miss.) 666d. Payment in Confederate money 
is not invalid because removal was unlawful (Tenn.) 1294c. Payment under threat of 
.attachment is not under duress (Utah) 1343b. Neglect to indorse payments made on 



156 BANKS AND BANKING 



PROMISSORY NOTE— Continued 
Payment (continued) 

note does not affect their character (Minn.) 657a. Note surrendered for stock is paid 
(N. D.) 1131a. 
Wkai does not constitute payment: "Canceled" marked on note (Cal. ) 75b. Charging 
notes to maker's account (N. Y.) 913c. Deposit with bank, with instructions to pay 
(Mich.) 606d. Indorser cannot pay holder for value in payor's depreciated notes (Pa.) 
1192d. Illegal payment is invalid (Tenn.) 1292d. Assignment of maker's interest in 
note held by another bank as collateral (N. C.) 1125d. Statement that "matter is 
arranged" does not estop denial of payment (Pa.) 1243a. Unauthorized act of agent 
(Pa.) 1230c, or deKvery by bank's president (N. Y.) 1072b. 

Post-note 

entitled to grace, under statute (Mass.) 527c. 

not bank bill for which stockholders are individually liable (Mass.) 534d. 
not void for containing phrase "the faith of the state pledged" (Miss.) 665e. 
Holder must prove bona fides and can only recover what he paid (La.) 409b. 

Presentment 

Effect. When payment refused, binds indorser (Me. ) 473b, (Mass.) 542c. 

Failure discharges indorser (Mass.) 553c. — does not discharge maker, except from 
liability for damages, if ready to pay (N. Y.) 958a. —gives rise to action for full 
amount only if maker insolvent (Oluo) 1131d. Measure of damages is face value 
(N. D.) 1129d. Bank not relieved from presentment by removal of maker from city 
(La.) 377e, nor by maker's request for extension (Me.) 467b. 

Negligence. Collecting bank held only to reasonable diligence (S. D.) 1283c, and is not 
Kable for notary's negligence, under vague proof of his incapacity (Miss.) 675c. 

What constitutes: Presentment at maturity during banking hours (Mich.) 623a, or 
after (Me.) 473b, (Mass.) 542c, (Miss.) 674a, by notary (Miss.) 680d, or if some 
one is present authorized to answer demand (Miss.) 667a, 669c. Possession of note 
by bank where payable (Ky.) 362d, (S. C.) 1259a. Demand implies presentation 
(Me.) 458e, (Mo.) 718a. 

What does not constitute: Sending note through clearing house to bank where payable 
(Mass.) 567b. 

When unnecessary. When note is payable at bank (Mass.) 525a, and given to bank 
(N. Y.) 1062c. 

Protest 

By whom made. Private person, with witnesses, where there is no notary (Ky.) 346a. 
Cashier, both maker and notary (N. Y.) 1062c. Notary, also stockholder, incompetent 
to charge indorser on note owned by bank (Pa.) 1177a. 

Evidence of presentment, where so stating (Mo.) 696a. — o/" demand and dishonor, where 
under seal (Mich.) 623a; contra (Md.) 492c. — of notice, where memorandum of 
notice is made on note by cashier (N. Y.) 862c. Notary's certificate only prima facie 
evidence (Ala.) 5c, (N. Y.) 952c, (Pa.) 1244b. 

i^^?5 recoverable on notes payable to order, not on those payable to bearer (Pa.) 1179b. 
— not allowed to private person protesting note (Ky.) 346a. 

Necessary, to bind indorser, where note is on footing of foreign bill of exchange (Ky.) 
347b. — within reasonable time, where impossible at maturity (Tenn.) 1296c. 

Unnecessary (N. Y.) 862c. — where impossible (Tenn.) 1296c. — where indorser is also 
collecting agent of holder (Ark.) 58c. — where maker is insolvent or non-resident 
(Tex.) 1333d, and note is unindorsed (La.) 419b. — where all parties are in same 
town (Pa.) 1176a. 

Negligence. Collecting bank liable to holder for failure to protest (Ind.) 262c, for face 
value, interest and protest fees (N. Y.) 1096d. Bank is guilty of negligence in pro- 
testing before maturity (Pa.) 1192a. 

Notice. Collecting bank must use same diligence required of holder (La.) 380c. Holder, 
passing by immediate indorser, must notify remote indorser within time required for 
former (Ohio) 1160b. Bank not liable for notice to one of same name as indorser in 
absence of iudorser's address (la.) 287d. Cashier not required to deliver notice per- 
sonally (Conn.) 108d. Proof of notice of non-payment and of protest is essential to 
bind indorser (Ga.) 160c. Certificate of notary, also cashier and stockholder, does 
not prove notice to indorser (N. Y.) 869b. Holder cannot recover for failure without 
proof that maker is insolvent (Ala.) lib. Notice must be sent to place where note 
was dated, if indorser's residence unknown and unascertainable (Miss.) 680d; to either 
of two residences (La.) 392a; to place of business (N. Y.) 952c, even if business con- 
ducted by indorser's assignee (Mass.) 580a, to former residence, insufficient, where 
indorser had moved within Confederate lines (Va.) 1375c. Actual notice to indorser 
in due time is sufficient (Pa.) 1193c. No particular form or method requisite (Conn.) 
108d. Verbal notice sufficient where maker dies before note's maturity (Pa.) 1176a. 
General objection to sufficiency is insufficient (Mich.) 607c. Notification by mail, 
sufficient (Ky.) 345c, if party resides in another town (Conn.) 108b, 108d, but not if 
personal service is possible (Ya.) 1379a. Notice may be sent to president of indorser 
bank (Wis.) 1401a; to bank whose president was indorser (Mo.) 718a; to partner 
where firm indorsed (N. Y.) 869a; to legal representative where indorser is dead (La.> 



INDEX 157 

PROMISSORY NOTE— Continued 
Protest (continued) 

393b. Notice is insuflBdent if unsigned (Mo.) 697a. Notice on same day is sufficient 
(Mass.) 568a, or next day (N. J.) 822b, or within two days where one is Sunday 
(Mass.) 568a. 

Ratification of teller's act in receiving note effected by bank's protest of it (D. C.) 132b. 
— o/" depositor's fraudulent act not effected by bank's protest and notice to depositor as 
indorser (N. Y.) 931a. 

Validity. Valid, even if not made in corporate name (Md.) 492c, or if without seal 
(Ky.) 361c. — //'certificate shows protest made, notice of non-payment and of protest 
therefor given to indorser (Ga.) 171d. — // certificate states post office to which notice 
was sent, indorser not denying that it was the nearest office (La.) 389b. — if made 
on both days where date is doubtful (Pa.) 1192a. 

Invalid, if made before hour fixed by bank's usage (Miss.) 665a. 

Waiver of protest is a waiver of demand (Utah) 1342a. 

Heformation 

of officer's note intended for corporate debt allowed. in equity (Ark.) 62d. 

Renewal 

Contract to renew notes until maker's condition improves is too vague (Mass.) 593c. 
Parol agreement to renew cannot be proved to alter date of payment (Mass.) 593c. 
Cancellation of old for new note is valuable consideration (N. Y.) 869c. 

Defenses. Usury, where original transaction was usurious (Mo.) 720e, (Neb.) 784c, and 
maker may credit interest paid (Pa.) 1209c. — where renewals were usurious (Ark.) 
59b, but to charge interest on face of renewal note, taken for old note plus interest, 
is not usurious (Ark.) 52b, nor is the renewal of usurious note on which maker of 
renewal note was indorser (Pa.) 1206a. Illegal transfer of old notes (La.) 410b. 
No defense that old note was not surrendered (Mich. ) 621d. 

Definition. Continued rediscounts are renewals supported by original consideration 
(Tenn.) 1298d. No novation where liabiUty of original debtor is preserved (Mo.) 
764a. 

Effect. Discharges original note (Ky.) 349b, if paid (N. Y.) 1063d; contra, where in- 
dorsements of renewals are forged (Mo.) 741c, or in case of indorser, where renewal 
is conditional (N. Y.) 980d. Does not change character of original transaction (Pa.) 
1241c. Does not affect creditor's interest in retained security (Ohio) 1156a. Is a 
new contract (Miss.) 677d. Whether acceptance of renewal is ratificatioji of collection 
bank's failure to protest original is question of fact (Va.) 1378b. Sureties on original 
debt not discharged by advances on renewal note (N. Y.) 1063d. 

Indorser may authorize another to indorse renewals (Mich.) 620c. 

Payment. Renewal not payment (Pa.) 1223d, unless proceeds appUed (Ky.) 349c. Bur- 
den on maker to show that renewals were taken in payment (Pa.) 1223d. Whether 
given as payment is question of fact (Pa.) 1208c. 

Setoff 

What may be set off against note. Maker's deposit, and bank can refuse to pay his checks 
(Mo.) 727a; in suit by bank's receiver (Neb.) 792b. Intestate's deposit, on notes 
made by representative substituted for those of deceased (Wis.) 1425a. Accommo- 
dation payee's deposit, on his own suit (N. Y.) 1064a. If non-negotiable, only debts 
due maker at time of transfer (Mont.) 769e. 
What may not be set off against note. Deposit of principal where surety alone is sued 
(Ala.) 2b. Notes of a bank, where the note sued on was intended to be discounted 
at bank (Miss.) 669e. Deposits at time of transfer of note by bank, if bank is solvent 
(Mont.) 769e. Demand against payee in action by indorsee if indorsement is bona 
fide (N. Y.) 859e. Deposits, where clearing house sues on note pledged by bank (Pa.) 
1235a. Unmatured claim (Neb.) 796e. 
Custody of notes does not make mutual credits (Mass.) 542b. 

Note ca.n beset off against deposit of insolvent, if note is not yet matured (Mass.) 538b. 
Note of original owner of certificate of deposit cannot be set off against holder of certifi- 
cate by indorsement (Mass.) 571c. 

Surety 

Character. In equity, indorser is viewed as surety (Del.) 127b. Maker held as principal, 
though creditor knew, as between parties, he was surety (Cal.) 81c. Surety on note 
of his partner for firm debt is not principal (Me.) 462d. 

Evidence of contract between cashier and surety that cashier would require other solvent 
sureties inadmissible (Mo.) 739d. — that signature on note resembles that of alleged 
surety, insufficient (Ark. ) 46e. 

Liable to holder without notice, though surety signed conditionally (Mo.) 739d, 
(Tenn.) 1314a. — on original note, though name is forged on renewals, if not in- 
jured thereby (Mo.) 741c. — on original note, on withdrawal of notes given by 
surety for discontinuance of suit (Miss.) 681c. — though prior signatures were forged 
(Me.) 481b. — where signing under misrepresentations not made by payee's agent or 
with its knowledge (Tex.) 1338b. Surety's deposit cannot be applied by bank or 
receiver (Ind.) 270b. 



158 BANKS AND BANKING 



PROMISSORY NOTE— Continued 
Surety (continued) 

Discharged by extension of time (Mass.) 573c, but burden of proving extension under an 
agreement for additional security is on surety (Ark.) 46e, and question of extension 
by application of principal's draft as interest is for jury (Vt.) 1353b. —failure 
of consideration (La.) 422b. —failure of holder to sue maker, within three months, 
under statute (Ga.) 140d. — release of cosurety, to extent of one-half the note 
(Ark.) 51a. — usurious agreement between principal debtor and creditor, only to same 
extent as principal (Ohio) 1152c. 

Not discharged by discount by; another than payee at higher rate than payee's charter 
allowed (Vt.) 1353b. —failure of bank to discover forged indorsement to renewals, 
if sureties suffered no loss (Mo.) 741c, or to apply depositor's funds (Mo.) 756a. 
—failure of holder to sue maker after request by one surety (Mass.) 573c. —state- 
ment of cashier that bank would not look to surety (Mo.) 712e, 748b. —usurious 
consideration for note (Mo.) 710d. 
Valid defenses. Failure to apply maker's deposit to note due (Pa.) 1218a; contra 
(Ind.) 261b, 262a, 265b, (Kan.) 338c. Sale of note without consent or ratification 
(Me.) 481b, or by ultra vires act (Mich.) 613d. Use for unlawful purpose, though 
surety believed it was intended for such use (Tex.) 1338b. 

Invalid defenses. Fact that holder interfered with execution against maker, unless 
property shown to be subject to levy (Ind.) 262a. Failure of notice of non-pay- 
ment if surety be maker (id.), (Mass.) 527b. Fact that surety was misled in releasing 
lien he held against principal (Tex.) 1333b. 

Title 

of assignee to mortgage notes is sufliciently 'shown, as against bank holding mort- 

fagor's deposit, by presenting notes with assignment (Mich.) 606c. 
ank, is not shown because note is payable to cashier or bearer (Ala.) 11a. 
to note to cashier for bank's benefit, and without indorsement is in bank (Neb) 770d. 
— indorsed by bank after expiration of charter and sold to plaintiff by receiver may 
be proved by record of extension of charter,, adjudication of insolvency and order 
allowing sale (Neb.) 796e. 
Possession is prima facie evidence (Cal.) 83d. 
Allowance of claim on note against an estate is adjudication of ownership (Neb.) 796d. 

Transfer 

by assignment, carries right to continue suit in assignor's name (Ala.) 25b. — does not 
abate suit pending thereon (Me.) 483b. —passes but an equity (Miss.) 679e. — is 
not notice of assignee's right to proceeds (Mo.) 765a. — of notes secured by mort- 
gage, does not extinguish mortgage (Neb.) 771a. — as collateral, holder does not 
cease to be owner (N. Y.) 1064a. — is governed by law of place where made (Ky.) 
357b. Remote assignor not liable to action by holder (Ky.) 342c. 

by purchase for value and without notice of omission of bank directors to authorize 
transfer, is protected under R. S. ch. 18, Title 2, Art. 1, sec. 8, (N. Y.) 920a. —car- 
ries warranty of title by vendor (Mass.) 541b. — occurs where bank takes amount 
from deposit of stranger to the note and sends it to payee who accepts it (N. Y.) 
1017b; where a stranger to note takes it up from holder, (Mo.) 763a; where depositor, 
at bank's request, loans money to bank's debtor on note given to Ijank, which bank 
retains for collection, giving receipt therefor (Utah) 1344a. — of indorsed note before 
maturity is discount, not sale (Ky.) 368b. Bank giving credit for note becomes 
purchaser for value (Kan.) 319d. 

by insolvent bank, with notice, is invalid (Minn.) 650b. — to state is valid between 
state and maker (Tenn.) 1801c. 

Evidence. Lack of indorsement shows sale, not discount (Minn.) 634b. 

Indorsem.ent. Evidence explaining special indorsement admissible (Miss.) 673e. Memor- 
andum indorsed that note is held for another is notice that it is collateral (Mass.) 
563a. 

Suit on note is election to stand by transfer (Mass.) 563b. 

PROTEST 

(See Checks, Drafts, Promissory Notes) 

puBiiic rriJUDS 

Bank Safety Fund 

is for the payment of any debt of any insolvent bank (Vt.) 1350b. 

Credit 

State funds should be entered to credit of state (Minn.) 649d. 

Public moneys do not lose character when deposited to credit of trustees (Wyo.) 1430a. 

Creditor 

State is not a creditor of the depositary of its officers (Mo.) 724d. 



INDEX ISO- 

(^ PUBLIC FUNDS— Continued 

Deposit (see Deposit) 

creates relation of debtor and creditor (N. Y.) 949b. 

Deposit by "S, Surrogate," the latter word descriptio personae (N. J.) 844.e. — by "dep- 
uty treasurer" does not mark it as county funds (Pa.) 1222b. —in name of "clerk" 
does not make general deposit special (Ind.) 268b. 

Depositary 

cannot recover damages from prior depositary for failure to deliver funds (N. Y.) 949b. 

Liability of bank 

is not inereased by adding "Clerk" to name in whicb general deposit is made (Ind.) 

268b. 
Bank is not liable to U. S. for money deposited by one as collector (N. Y.) 887c. —has 

no right to accept a deposit of city warrants as cash or credit same as cash (Wash.) 

1385a. 
Pavment of personal check from known public funds renders bank liable (Ark.) 61c. 

Liability of officers (see Public Officers) 

School treasurer depositing school funds in his own name is liable (Neb.) 774a. 

State treasurer violating the law does not relieve county treasurer from duty to present 

check within reasonable time (Mo.) 714d. 
Probate judge making general deposit of public funds is liable (Ala.) 33a. 

Loans 

Deposit of public money is not a loan within the statute (Mo.) 724d, (S. D.) 1278c. 

Contra (Neb.) 784a. 
Statutory provision against loaning state money, allows its deposit (Mo.) 724d. 

Payment 

by check may be made by a public officer, with funds on deposit (Mo.) 714d. 

from general official fund, is allowable, on check drawn on special official fund (111.) 243c. 

of check of county treasurer should be made out of funds on deposit, though not kept 

separate (HI.) 243c. 
Time deposit is payable on demand if board has no power to make such (Minn.) 654a. 

Recovery 

Assignee of county claims may pursue funds into the hands of anyone having notice of 

true ownership (Mo.) 724b. 
County cssixioX bring an action at law unless a depositor (N. J.) 843b, c. —owning funds 

may sue in equity (N. J.) 843b. 
City may recover against bank for funds unlawfully deposited by an officer in his own 

name (Neb.) 807d. 
Bank as fiscal agent, paying city's debts, according to official list, not liable for debts 

unlawfully included (La.) 441c. 

Surety (see Surety) 

of state officers subrogated to right of state to recover from bank applying funds in pay- 
ment of individual debts (Ark.) 49c. 
liable for default of bank, de facto depositary of county funds (Minn.) 648b. 

Title 

to deposit in bank made in official capacity passes to successors (Md.) 510d. — o/" county 
funds made by an officer in his own name is in county (N. J.) 843b, c. — by warden 
of state prison as separate establishment is not in state (Mass.) 536b. 

to public money deposited by officer is in the public (N. J.) 843c. 

to tax money deposited for payment of interest is not in coupon holders (La.) 436d. 

"County treasurer'''' added to depositor's name imparts no notice of trust (Mo.) 724b. 

Money in fact belonging to county may as between bank and depositor, be treated as 
latter's (Pa.) 1222b. 

PlTBtlC OFFICERS 

Assemblyman 

Prohibition against indorsement of notes by assemblyman does not include suretyship 
(Ala.) 19c. 

Attorney-General 

may institute proceedings against corporation without examination of its books (Cal.) 
70e. —under Act of 1858, to forfeit bank charter (La.) 427d. 

m,ay not examine books of corporation at his own option (Cal.) 70d; to discover es- 
cheated property (Cal.) 70e; under Code of California (Cal.) 70e. 

is not required under sec. 474 of political code to demand that bank books and papers 
be submitted to him, before commencing proceedings against property escheating to the 
state (Cal.) 70d. 

Under Act of 1855 no writ of sequestration can issue against bank except upon appear- 
ance and application of attorney-general (La.) 427c. 



160 BANKS AND BANKING 



PUBLIC. OFFICERS— Continued 
Bank Commissioners 

t^ Judicial notice is taken of acts of bank commissioners (Ala.) 21a. 

^ Repeal of act creating board of bank commissioners does not abate action brought by 

I receiver at instance of board (Mass.) 532b. 

Salary of bank commissioners may be changed by statute during term of office (La.) ■ 
406b. 

Bank Comptroller 

has power, in his discretion, under R. S. 1858, ch. 6, sec. 12, to order printing for de- 
partments under him (Wis.) 1398c. 

has no power from State to sue, at risk of State, on stockholders' bond for benefit of 
billholders (Wis.) 1408c. 

owes no duty to billholders to sue for their benefit on stockholders' bond, without reserv- 
ing enough to indemnify himself for costs (Wis.) 1408c. 

is proper plaintiff, as obligee, in action on bond to secure billholders (Wis.) 1404c. 

Judgment for bank comptroller in action on bond to secure billholders, is for liability 
contingent on amount actually due (Wis.) 1406d. 

State assumes no expense, as to bank comptroller, other than his compensation (Wis.) 
1408c. 

Bank Examiner 

Claim of bank examiner for services is against bank (N. Y.) 1038b. 

Stockholder has no direct legal interest in reduction of compensation of bank examiners 
such as win entitle him to mandamus (Neb.) 777c. 

Bank Supervisors 

Mandamus will not lie to compel Board of Bank Supervisors to revise and rescind order 
fixing compensation of bank examiners (Neb.) 777c. 

Bank Visitor 

Legislature may create office of bank visitor, and fix salary by special act (Ark.) 44c. 

Board of Currency 

under Act of 1842, may personally examine books, but cannot require bank at its own 
expense to furnish statement from its books (La.) 394c. 

Bonds 

Sureties of public officer, who have compensated State for public moneys diverted by bank, 
are subrogated to rights of State against bank (Ark.) 59c, 61c. 

City Treasurer 

City is not liable for unauthorized loan procured by its treasurer, who is in default, though 
the money be mingled with its funds and paid out to its creditors (Mass.) 554d. 

Commissioners 

to liquidate, are, in absence of statutory regulation, entitled to compensation fixed by 

court in its discretion (La.) 454a. 
to receive subscriptions may determine, in absence of prescribed rule, what is bona fide 

subscription to bank stock (Ga.) 144b. — m-ay fix time of payment for bank stock, if 

not prescribed (id.). — have no power to determine qualifications of directors (id.). 

— render final decision in apportioning and allotting stock (Conn.) 117a. 

Comptroller of Currency 

Certificate of comptroller is admissible to prove organization in action by national bank 
(Mich.) 608b. — removes objection to certificate of organization of national bank 
(Mich.) 605e. —for less capital than voted does not bind one who has subscribed to 
original increase of capital stock (Mass.) 579b. 

County Commissioners 

have no power to borrow on the credit of the county (N. Y.) 1025e. 

are liable for amount of state tax lost by omission to make return of property of bank 
as shown by assessment list (Pa.) 1248e. 

County Officers 

are guilty of breach of duty to public in failing to file claim against insolvent bank 
(Minn.) 660a. 

County Treasurer 

has power to accept security for money which he is authorized to receive from a bank 

(la.) 294d. 
County is owner of check delivered to county treasurer (Dak.) 126a. 
Deposit of public funds to credit of county treasurer does not destroy their character as 

public funds (Wyo.) 1430a. — renders county treasurer liable as debtor to county 

(Mich.) 607a. 
Deposit by county treasurer in official capacity gives bank no right to apply amount to 

payment of his individual debt (S. D.) 1280d. 



INDEX 161 

PUBLIC OFFICERS-Continued 
Court clerk 

acts as clerk de facto in approving his own bond (la.) 304c. 

Deposits (see Deposits, Public Funds) 

are not state money, if made by warden of State prison as a separate establishment 

(Mass.) 536b. 
render State officer liable, if unlawfully made (Cal.) 86a. 
pass to duly appointed successors, if made in official name and character (Md.) 510d. 

Governor 

has no power to bind State by ratification of void sale of bank stock by his agent (Mo.) 
706e. — to deprive assignees of property of bank conveyed to them (111.) 184d. — to 
make or fill vacancies in office, in winding up bank (111.) 184d. 

Judge 

is not disqualified by interest because director of plaintiff (Ala.) 2b. —if objection be 
not made until after hearing consented to with knowledge that he was related to one 
of plaintiff's stockholders (Ga.) 178c. 

Judicial notice 

is taken of powers of public officers (Mo.) 714d. 

Notary 

acts as public officer in protesting, though he be employee of bank (Ga.) 168a. 

fulfills official duty by noting bill for protest (N. Y.) 870a. 

does not render bank liable for his negligence while acting as public officer (Ga.) 168a. 

is agent of creditor (Pa.) 1178b. 

is not liable, though negligent, for payment by bank on forged indorsement (Cal.) 76b. 

is incompetent to charge indorser on note owned by bank of which he is a stockholder 
(Pa.) 1177a. 

Certificate of notary, who is also cashier and stockholder of bank, does not prove notice 
to indorser (N. Y.) 869b. — who is vice-president of mortgagee bank does not neces- 
sarily avoid mortgage as being executed by an interested party (Fla.) 137a. — is only 
prima facie evidence (D. C.) 132c. 

Official acts 

prove themselves (Mo.) 696a. 

Powers 

of custodian of public money do not include right to deposit with bank of which he is 

stockholder or partner (Mich.) 629a. 
of officers authorized by legislature to settle bank's debt to State do not include right to 

make State assume liability under mortgage on property assigned by bank (Mich.) 

599b. 
Bank is charged with knowledge of extent of powers of officers appointed by legislature 

to settle bank's debt to State (Mich.) 599b. 
State is bound by lawful act of its agent but not by the unlawful act, where both are 

done simultaneously (Mich.) 599b. 

Receiver — see Rbcbiver 

Relation 

between State and employees is not that of creditor and debtor, within meaning of attach- 
ment law (Tenn.) 1289a. 

Sheriff 

may assign attachment bond to secure promissory note given by him to one obtaining 

judgment for unlawful seizure (Kan.) 336d. 
cannot institute creditors' suit to reach proceeds of property assigned in insolvency, which 

he could not otherwise attach as debtor's property (N. Y.) 939d. 
Money collected for taxes, by deputies of deceased sheriff, is impressed with trust in favor 

of State (Va.) 1378d. 

State Auditor 

alone is authorized to maintain action against officers and trustees of savings banks for 
violation of statutory duties (Ind.) 268c. 

State Board of Equalization 

has no power to raise valuation of bank stock without raising that of other stock (S. D.) 
1281a. — to divide a class of property for the sole purpose of increasing the assess- 
ment of a part thereof consisting of bank stock (S. D.) 1280e. 

State Senator 

Money due one as State Senator cannot be applied for the benefit of his sureties on note 
due the State Bank (Ark.) 51b. 

State Treasurer 

is bound to apply proceeds of stock to payment of bills, though bank be in hands of 
receiver (Mich.) 603d. 



162 BANKS AND BANKING 



PUBLIC OFFICERS— Continued 
State Treasurer (continued) 
fulfills duty under statute requiring him to turn over to successor all moneys and books, 

by turning over bank accounts (Neb.) 795a. 
may be compelled to sell bank stock on bank's failure to redeem its bills (Mich.) 603c. 
Deposit of public funds to account of State Treasurer does not destroy their character as 

public funds (Wyo.) 1430a. 
State has no title to stockholders' funds held by State Treasurer in trust for billholders 

(Wis.) 1408c. 
Salary of State Treasiirer is not subject to attachment in hands of State disbursing 

officer (Tenn.) 1289a. 
Suit by State Treasurer on certificates of deposit received from his predecessor is ratifica- 
tion by State of his acceptance of them (Neb.) 790d. 

Superintendent of Banking 

in possession of bank may turn over property to receiver, under dissolution order pending 

voluntary proceedings (N. Y.) 1065a. 
Possession of property by superintendent does not bar directors from management except 

by holding it pending proceedings (N. Y.) 1064d. 

Tax Assessors^' 

are presumed to have performed their duty (La.) 444b. — to have complied with law in 
making prescribed deductions from taxable value of property (N. Y.) 960c. 

Tax Collector 

has no authority to seize bank property, under power to seize property of stockholders 
for tax on bank stock (N. Y.) 958b. 

Town Treasurer 

Fraud of Town Treasurer, in inducing acceptance of private note in exchange for check on 
town funds, does not prevent the transaction from operating as payment of the check 
(Me.) 486a. 

Treasurer of School District 

cannot be released by the district for his losses by bank's failure (Neb.) 774a. 

BATIFICATlOSr 

of acts of agent. See Agency, Ratification. 

of acts of collection bank. See Collections, Ratification. 

of agreement imth bank is efiiected by State acting thereon for two years (Mich. ) 600a. 

of discount of note is effected by bank's application of proceeds to depositor's notes 

surrendered to him (111.) 206a. 
of mortgage is efiected by mortgagee setting it up as a defense (Me. ) 484a. 
of original obligation is efiected by voluntary execution of substituted obligation (La.) 

395d. 
of payment by bank is efiected by payee's settlement with person collecting check on payee's 

forged indorsement (Ga.) 171c. 
of unauthorized act is not efiected in law by failure to assert rights by action (111.) 207b 

BEAIi PROPEKTY 

Lease 

by bank cannot be terminated by any notice of receiver and payment to date (111.) 227d 
After total breach of contract by bank, lessor may take possession of premises (111.) 235c. 

Purchaser for value 

of property rented by bank, not bound, without notice, by equities existing between his 
grantor and bank (Neb.) 797e. 

Taxation— see Taxation. 

Title 

Possession by bank president of land owned formerly by bank is notice of adverse holding 
(Ga.) 145b. 

RECEIPT 

(See Evidence) 

Effect. Receipts are admissions but are not conclusive (N. J.) 821c, unless acted on by 

other party to his injury (S. C.) 1260d. 
Evidence, may be received to contradict a receipt (N. J.) 828a. — o/" contents of receipt 

may be received (Miss.) 673b. — by declarations of cashier are not sufficient to change 

a, receipt (Pa.) 1213c. 



INDEX 163 



RECEIVER 

Action 

against stockholder of insolvent bank may be brought in name of receiver (Conn.) 122b. 
Default on summons served on bank president who supposed all power was in receiver 

should be set aside (N. Y.) 964b. 
Direction of receiver's suit and surrender of corporate rights must be pleaded (N. Y.) 

863b. 
Judgment entered in bank's name after receiver takes possession should not be vacated 

(111.) 223a. 
Possession of notes by receiver is prima facie evidence of non-payment (N. Y.)928d. 
Revival of receiver's suit unnecessary for adjustment of creditors' claims against fund in 

receiver's hands (N. Y.) 877b. 
Sec. 26, ch. 43, Laws of 1 91, does not prevent suit against bank after receiver appointed 

and before dissolution (Kan.) 340c. 
Service of writ is not equivalent to presentation of claim to receiver (Me.) 463b. 
State court is not ousted by pending proceedings in U. S. court before appointment of 

receiver (Ga.) 161a. 
Suit for appointment of receiver, and all creditors ordered to file their claims will pre- 
clude separate actions by creditors and the liabilities of officers and stockholders will 

be enforced in one action (Wis.) 1425c. 

Appointment ^ 

acquiesced in cannot thereafter be questioned (la.) 299b. 

and removal may be made by court, and such appointment stands, although charter be 
improperly forfeited (La.) 446b. 

applied for by State renders such application a civil suit within meaning of constitution 
(Neb.) 779d. 

by supreme court for state bank is valid (Neb.) 776b. 

can be made by chancery without notice where no officers of bank can be found (N. Y.) 
921a. 

cannot be attacked collaterally (Neb.) 802a. — be complained of by debtor of bank (la.) 
304c. — be made by court at suit of private party, without statute (Cal.) 67d. — be 
made by Superior court under Bank Commissioners'' Act (Cal.) 79a. 

cuts off attachments filed after injunction on repeal of charter (Mass.) 530a. 

does not dissolve bank (111.) 227d. —divest bank of legal title to lands (Mich.) 605d. 

is no bar to suit against insolvent bank (Conn.) 119c. 

is to preserve assets for creditors (Vt.) 1359a. 

lies Ttnthin jurisdiction of circuit court on stockholders' petition (la.) 299b. 

m.ay be mad,e to abide event, although appeal is taken (N. Y.) 859b. 

not granted on ground that valid voluntary liquidation prejudices stockholder's interest 
(Kan.) 322e. 

not made unless specific relief sought can be granted (Ala.) 35d. 

of impartial receiver, may be claimed by creditors (N. Y.) 859b. 

of new receiver to fill vacancy need not be made where number of receivers is discretion- 
ary (Me.) 475d. 

of teviporary receiver, by court first appointing, gives it exclusive jurisdiction (N. C.) 
1124a, but second receiver appointed by another court is not punishable for contempt 
for acts done by him under order of court appointing him (id.). — is only ancillary 
remedy and grounds need not be stated in detail (Kan.) 319c. — ifo^^ not work disso- 
lution (Vt.) 1359a. 

renders notice thereof to creditors unnecessary (Kan.) 319c, although seldom dispensed 
with (Ala.) 35d. 

should be vacated on motion by cashier without objection, where granted on voluntary 
appearance by president, no insolvency <3r mismanagement being shown (Neb.) 791a. 

Creditors cannot apply for receiver of bank estate in hands of assignee under state law 
(Minn.) 647b. 

Insolvency Q>i\szxik. entitles stockholder, under statute, to petition for receiver (la.) 299b. 

Tudgment thereafter on bank's bond is not a lien on its real estate (la.) 294d. 

JVom-ination of Officers of bank may be excluded by court (N. Y.) 860a. 

Omission of oath of office does not vitiate proceedings to collect assets (Me.) 477d. 

Stockholder liable for bank's debts, cannot be receiver (Me.) 474a. 

Validity shown by comptroller's certificate (N. Y.) 966c, which is admissible without 
proof of signature (Neb.) 801a. — by record (Kan.) 319c. 

Attachment — see Attachment 

Bond 

may be executed by surety company, under statute (Wis.) 1422c. 
Amount may be fixed by chancellor (N. Y.) 860a. 

Compensation 

properly allowed for receiver's services (R. I.) 1254a. 

must come from those moving appointment where receiver is deprived of property (Cal.) 

95d. 
Order requiring bank to pay receiver entitles him to be paid from fund (Minn.) 659b. 



164 BANKS AND BANKING 



RECEIVER— Continued 
Defenses 

against receiver, trustee's act required by superintendent of banking (N. Y.) 1000c. — ar 
not good, if not good against creditors (Neb.) 795b. —fraud, in action for purchase 
price of stock (Conn.) 117b. —judgment by receiver in another state (Conn.) 116b. 

by receiver, that loan was usurious, is not good (N. Y.) 914c. — ^o/" ultra vires is good, 
when plaintiff had notice thereof (Neb.) 804b. 

Disabilities 

Cannot discharge debt by accepting part payment or by purchasing property at exorbi- 
tant price (111.) 183c. — interfere With, claim of individual depositor (111.) 202a. — ter- 
minate lease by giving notice and paying to date (111.) 227d. —impair contract of 
bank (id.). — make contract of exchange of securities without order of court (Kan.) 
315d. — compromise judgment when debt is secure (111.) 183c. — compromise a claim 
(Tex.) 1328a. —make a valid ratification of allowing a setoff, when not empowered 
to allow setoff (N. Y.) 999c. —acquire greater right than bank to return proceeds of 
collection (N. Y.) 1018d. —petition court for reduction of tax without first applying 
to commissioners (N. Y.) 1019a. —give up pledge and set off deposit against note, 
without order of court (N. Y.) 1050b. —make gift from fund (R. I.) 1254a. —pay tax 
except on court order, though preferred claim (Wis.) 1422c. —sue stockholders by agree- 
ment of bank confessing judgment (Mo.) 717b. —.issuvie rights of bona fide purchaser 
(N. Y.) 882a. ^consider as paid, claims against institution of which he is receiver, 
and purchased by him as trustee of an estate (N. Y.) 988c. —give up claim against 
depositor without consideration (N. Y.) 1015a. —bind bank by his declarations in 
excess of his powers (Tex.) 1328a. —be presumed to be unauthorized because of his 
promise not to plead Statute of Limitations, in return for forbearance to sue (Mo.) 
749c. — compel conveyance of property purchased by bank officer with bank funds to 
protect himself on his bond without reUeving officer from liability on bond (N. Y.) 
923h. — as foreign receiver, claim title as against creditors to N. Y. funds (N. Y.) 
928b. —render estate of bank liable for his default, when acting outside his func- 
tions (Kan.) 315d. —become proper party to whom presentment of bank's paper 
should be made (Ore.) 1169a. —seek to have court disallow payment of valid claim 
made by him without authority (Wis.) 1422c. —enjoin creditor's action to enforce 
liability (Kan.) 339a. 

Cannot sue on promissory note when bank was not properly incorporated (Mich.) 600c. 
—depositor paid in good faith by bank confronted with run (Mich.) 625a. —stock- 
holders made parties to his former action against bank (Minn.) 648e. — o« accommo- 
dation paper, not negotiated, given to swell bank assets (Mo.) 766c. — on stock- 
holder's remedy against directors for deceit (N. C.) 1124c. —maker of notes loaned 
for bank's accommodation (Pa.) 1241c. —bank when he represents partnership, for 
money collected for one partner before notice (Cal.) 86d. 

Discharge 

Court may discharge receiver (Vt.) 1359a; but will not do so until both his rights and 

those of creditors are safeguarded (Mich.) 597c. 
Individual creditor cannot have receiver discharged, while claims of other creditors are 

unsatisfied (Mich.) 597c. 

Duty 

to ascertain amount of deficiency in assets (Mich.) 629b. 

to apply deposit to depositor's unmatured debt (N. Y. ) 924b. 

to petition to be made party to attachment suit instituted prior to his appointment 

(Neb.) 785d. 
to attempt to convert assets before proceeding against stockholders (N. Y.) 923a. 

Estoppel 

Bank consenting to appointment of receiver is not estopped to resist order directing sale 
of real estate (Neb.) 803d. 

Interest 

not chargeable against receiver (Mont.) 769d. 

Knowledge 

of bank officer chargeable to receiver (N. D.) 1129c. 

Liability 

Liable for deposit made without order of court (Ga.) 165d. —for negUgence of bank in 
failing to account for check properly mailed to it (Mo.) 749a. —for improper purchase 
on execution sale in favor of estate which he represents, in action for injury sustained 
by estate (Me.) 486d. 

Not liable for proceeds of check appropriated by insolvent bank to its account with 
payee (Minn.) 644a. —for costs on judgment, incurred before his appointment by 
comptroller (N. Y.) 973a. -f^or delay in payment of dividend where court postponed 
sale of assets (N. Y.) 925a. —personally while acting under board of control (Ohio) 
1149a. ^%r tax assessed against stockholders before insolvency (Wash.) 1386c. —for 
state tax where stockholders' interest in national bank is extinguished (Wash.) 1385d. 



INDEX 165 



RECEIVER— Continued 
National Bank Act— see National Bank Act 
Party to Action— see Action 

Powers 

Can as officer of court, apply to it for instructions (N. Y.) 924b. — assign any chose in 
action (N. Y.) 893b. — immediately take possession of the real estate (Me.) 479d. 
— colled assets, after surrender of charter, within the time limited for closing its affairs 
(Me.) 4.77d. — sue maker on check deposited and credited although payee stopped 
payment upon bank's suspension (Mass.) 578b. — enforce director's statutory liability 
for illegal loans by virtue of appointment under R. S. 1889, sec. 2193 (Mo.) 737c. 
— interve7ie, though appointed after suit begun against bank (Neb.) 802a. — bring 
suit against negligent directors by virtue of order appointing him (Ind.) 282a. — a^- 
suine possession of the assets when appointed by Act of Congress (Cal.) 84c. — com- 
promise suit to enforce stockholder's liability (Neb.) 802e. —avoid trust deed executed 
to secure void notes of bank (N. Y.) 878c. — receive property from superintendent of 
banking under dissolution order pending voluntary proceedings (N. Y.) 1065a. — re- 
tain control over assets in his hands after judgment of dissolution, though he cannot 
take new assets (N. Y.) 1069b. — extend time of payment of mortgage held by na- 
tional bank (N. D.) 1129c. — avoid any fraudulent act of insolvency, in derogation 
of creditor's rights (R. I.) 1251d. —pay surety company for signing his bond (Wis.) 
1422c. —retain proceeds of note collected day before failure (N. Y.) 1047b. —omit 
to account for broker's commissions on loans procured (R. I.) 1254a. — apply de- 
posit of stockholder of national bank to his statutory liability (Ohio) 1161b. — dis- 
affirm fraudulent transfer of assets by president and still retain stock sold by him in 
effecting fraud (R. I.) 1251d. — assume all the powers of director by virtue of an 
act, continuing the bank as a corporation, though providing for its liquidation (Ark.) 
45a. — make a valid assessment on ex parte order (la.) 304a. — execute mortgage 
as first lien and equivalent to receiver's certificate (111.) 245b. — act as agent for all 
parties interested (La.) 394d; or as trustee for creditors (N. Y.) 859e; or for board 
of control, as ministerial officer not owner of the assets (Ohio) 1149a. 

Can bring action in his own name (Me.) 479d, 486d. — in corporate name after surrender 
of charter (Me.) 477d. ^to enforce stockholder's liability (Cal.) 83a, (Colo.) 107c, 
(Mass.) 595b, (Minn.) 655a, (Neb.) 799a, (Wash.) 1385b; contra, (Minn.) 650a, 
(N. Y.) 1080a. — in state court after claim sold under order of federal court (Neb.) 
805a. — against stockholders without first converting demands in litigation (N. Y.) 
925a. — to enforce stockholder's liability and is not barred by prior proceedings by 
stockholder to wind up bank's affairs (N. Y.) 929e. —as representative of foreign 
bank, against stockholder in another state (N. Y.) 1083c. — under "i^. Y. constitution 
(N. Y.) 1088b. —under amendment passed after failure (N. Y.) 1088b. —to collect 
stock subscription (Miss.) 693b, (N. Y.) 884c, 937a; contra in chancery (Miss.) 
678a. — against director for gross negligence (Ind.) 282a; or to compel an account- 
ing for real estate purchased from bank (Miss.) 693d; or for permitting over in- 
debtedness contrary to statute (Mo.) 737c; or for buying notes from insolvent 
bank at less than face value (N. Y.) 906a. —under court order, against president 
for misappropriated assets (Neb.) 782c; or to enforce claim for drawing money 
on fictitious notes (N. Y. ) 928d. — to enforce stockholder's liability, and petition 
states a cause of action, if facts alleged would justify action by creditor (Minn.) 655a. 
— on note made to enable bank to continue business (N. C.) 1119c, (Wis.) 1426b; 
before other assets are exhausted (N. Y.) 1059e. — on bill of exchange, part of assets 
(Cal.) 63b. —for accounts transferred with notice and without consideration by in- 
solvent (Ga.) 167b. ^or all debts due • bank (La.) 431a. -against syndics to fix 
indebtedness due bank on pledge (La.) 456d. — to foreclose mortgage to secure pay- 
ment of debt due by cashier (Neb.) 781c. — to recover assets improperly paid oyer 
to another bank (N.J.) 828b. — where expressly allowed by statute notwithstanding 
provision of code (N. Y.) 1031d. —on promise for benefit of bank (N. Y.) 1059e. —for 
any asset of bank (id.), —for recovery of preference from depositor, (N. Y. ) 1077e. 
—for recovery of bank's money used in paying president's debt (N. C.) 1117b. —m 
any court (Vt.) 1361a. — to compel state treasurer to pay funds of insolvent bank 
to receiver for amount charged by order of court of chancery (Vt. ) 1354b. 

Receiver is agent of United States (N. D.) 1129c. — 'j officer of court (N. Y.) 1050b. 
— renders bank liable for funds received by him under illegal contract (Kan.) 315d. 
— is sole representative of parties after charter is forfeited (Ga.) 142b. — stands in 
shoes of officers of national bank (N. D.) 1129c. —represents creditors (R. I.) 1251d. 
— cannot be sued save by authority 'of court appointing him (Mich.) 630d. — cannot 
be sued on money demand against bank not against receiver (N. Y.) 909b. 

Removal 

cannot be made arbitrarily, under statutory power of appointment (Ohio) 1149d. 

Setoff (see Insolvency, Setoff) 

Receiver of insolvent bank takes the property subject to any setoff (Ga.) 170a. 
Eight of setoff is not affected by appointment of receiver (N. Y.) 859d. 



166 BANKS AND BANKING 



RECEIVER— Continued 
Setofif (continued) 

Setoff, allowed by receiver through presentation of fraudulent transfer of certificate, is 

a nullity (Tex.) 1333b. 
Setoff of damage sustained by unlawful use of bills of insolvent bank will be allowed in 
accounting (Conn.) 116c. 

Statute of Limitations 

not affected by appointment of receiver (111.) 242b. 

begins when receiver's account is allowed but suspended during appeal (Cal.) 95d. 
does not run while property is in custody of law (Tenn.) 1300b. 

not having run before action brought by first receiver may be continued by substituted 
receiver after it has run (Neb.) 805a. 

Stockholder — see Stockholder's Liability 

Title 

is that which bank had (Mo.) 737c, (Wis.) 1428b; and is subject to all legal and equi- 
table claims (Ind.) 270b, (Md.) 515b, (Neb.) 785d. 

to check is good where it does not operate assignment of fiind (111.) 236a. 

not good to notes given rational bank as loan to pay depositors (Wash.) 1382d. 

inferior to title of assignee, foi value, of claim to deposit, acquired prior to receiver's 
appointment (Dak.) 126c. 

superior to that of assessor, to tax levied after insolvency (Colo.) 100c. 

vests by operation of law (N. Y.) 928b. 

Trust fiinds— see Trusts 

Waiver 

of remedy, under appeal, by receiver's failure to join in appeal (111.) 236a. 
of right to sue, not made by presentation of claim to receiver (Mass.) 532d. 

Election 

Where reinedies are inconsistent, one first adopted must be pursued (N. Y.) 1014b. 

Presentation of claiin to bank receiver is not waiver of<right to sue (Mass.) 532d, or 
proof before assignee (Mo.) 760c. — is waiver of right to setoff in suit by assignee of 
bankrupt (Ky.) 356d. 

Suit on note is election to stand by transfer (Mass.) 563b. 

On wrongful withdrawal of money from bank, person entitled mav sue either fraudulent 
withdrawer or bank, but not both (N. Y.) 1014b, 1028b. 

Bank cannot elect to take profits and repudiate losses growing out of cashier's unlawful 
dealings with its funds (N. Y.) 1008a. 

Tort of defaulting cashier may be waived and action for value maintained against him or 
his legal representative (Tenn.) 1312b. 

Repudiation of settlement of bill of exchange by discounting bank, and suit against ac- 
ceptors, is repugnant to cross bill for preference (Ala.) 32a. 

R EORG ABf IZ ATIOar 

(See Organization) 

REPORTS AXD STATEMEJS'TS 

Affidavits' 

of verification need not contain facts sworn to in report (N. Y.) 1041c. 

Clearance 

statements, if one transaction, do not warrant recovery of single item (N. Y.) 1020d. 

Effect 

of weekly statement to customers is that it shows debt as well as passbook and amounts 

to a passbook (Cal.) 81b. 
False report by officer is basis for action of deceit by one purchasing stock, when 

relying thereon (N. C.) 1124c. Financial statement required by Secretary of State, 

is not ground for action of deceit (Mo.) 763c. 

Filing 

statement is sufiicient if before action is brought (Cal.) 77a. 

report with auditor is required by statute (111.) 182f. 

statement is necessary before bank can sue stockholder (Cal.) 72c. 

Financial 

statement of bank, its officers or customers cannot be required (Pa.) 1228e. 

Officer or Agent 

is not absolved from intentionally making false report to commissioner, by fact that 
no injury to bank or depositors was intended (Kan.) 338d. —estopped to show lack 



INDEX 167 



REPORTS AND STATEMENTS— Continued 
Officer or Agent (continued) 

of knowledge of bank's condition, by signing cashier's statement of financial condi- 
tion (Mo.) 763c. 
is estopped in criminal proceeding to deny that he was proper person to verify bank report 

(N. Y.) 1042a. 
is required to verify the entire report (N. Y.) 1041c. 

Treasitrer is a principal officer within the statute for verification (N. Y.) 1041c. 
Signature is prima facie evidence that he knew contents (Ky.) 372c. 

Stockholder 

in becoming such is entitled to rely on required published statements (Neb.) 803a. 

Sufficiency 

Report ts sufficient if it includes both statutory statements in one paper and is recorded 
in both records (Cal.) 77a, — if made according to law (Ohio) 1145a. 

Report is insufficient if it fails to [show capital paid in, or value of assets or where 
situated (Cal.) 76a. 

RES ADJUDICATA 

Judgment against bank and stockholders in action on deposit binds stockholders (Ind.) 
250a. — o-gainst living surety does not conclude representatives of deceased surety 
(Ohio) 1132a. — in suit to enjoin collection of taxes assessed for subsequent years 
not conclusive (Tenn.) 1319b. 

Actio7i will not lie against directors for negligence, after bill in equity for same cause 
(Pa.) 1219d. 

Proceedings of probate court conclusive in action to recover deposit made by deceased 
(Mo.) 712c. 

Order allowing suit against bank, not adjudication of rights of parties (Cal.) 79b. j 

REWARDS 

Bank offering reward "to bank officers and police detectives" may be liable to others 

(HI.) 194c. 
Director cannot recover reward offered by bank (111.) 181b. 
Offer of reward by bank president presumed to be authorized (111.) 235a. 
Ratification implied by failure of directors to disavow reward offered by cashier (Pa.) 

1201b. 

SAI.E 
Caveat Emptor 

applies to bank bills (111.) 185a. — commercial paper (N. Y.) 994a. 

Hescission 

of sale and return or offer to return, are necessary in actions for deceit (Cal.) 77c. 
Bank may issue and tender new certificates, on rescinding sale of own stock (Cal.) 77c. 
Completed sale of notes to bank through president and cashier cannot be rescinded 

(Mass.) 560d. 
Purchase of stock, induced by president's false statement, may be rescinded (Ky.) 368a. 

Stoppage of transitu 

Vendor cannot stop, as against a bank which has advanced money to consignee and 
received bill of lading (Colo.) 104c. 

Title 

Vendor of personal property including promissory note warrants title (Mass.) 541b. 

SAVIJTGS RAWK 

Depositors 

are not partners of each other Or of the bank (Me.) 464b. 

cannot sue for loss of part of deposit (Conn.) 120b. 

Insolvency of savings bank is no defense to action for deposit (Me.) 464b. 

Xiability 

liable to depositor notwithstanding bank's insolvency (Me.) 464b. —for malicious pros- 
ecution (Mass.) 566c. 

not liable to holder of order requiring production of book, unless book is produced (Me.) 
489d. —for paying forged order, if paying on agreed terms and with due diligence 
(N. Y.) 966d. —/or paying survivor of two depositors, though notified by creditor 
to pay only on court's order (N. Y.) 1014a. —for clerk's agreement as to with- 
drawal of deposit, contrary to by-laws in pass-book (N. Y.) 1014b. 

ITotice of Withdrawal 

is waived by informing claimaiit that deposit has been paid (N. Y.) 1014b. 



168 BANKS AND BANKING 



SAVINGS BANK— Continued 
Power — see Powers of Banks 

to do business does not arise until all the capital stock is subscribed (111.) 217b. 

Trustee 

Savings bank is more than a trustee, if there is an absolute agreement to pay deposits 

(Me.) 460a, 464c, or if charter provides for withdrawal of deposits (Me.) 464b. 
Savings bank may act as trustee for others than stockholders and creditors (Me.) 464c. 

SEAL, 
(See Corporations, Powers of Banks) 

SECRETARY 

(See Corporations, Officers and Agents) 

SEQUESTRATIOlHf 

No debt accrues against bank after sequestration (Me.) 482d. 

Title derived through Confederate government which sequestered stock of alien, falls with 
the government (Ga.) 153c. 

SETOFF 

Suit on bond of cashier does not bar setoif of same cause of action (Mo.) 728b. 
Past due claims cannot be set off against an assigned claim not due at time of assign- 
ment (Mich.) 632d. 
See Deposit, Insolye.ncy, Pleadixg, Promissory Notes. 

SHERIFF 

(See Public Officers) 

STATE AUDITOR 

(See Public Officers) 

STATE BA]»KS 

Alabama 

Bank of Alabama and branches may buy real estate under execution upon its own judg- 
ment (Ala.) 24c, and agent may execute process for bank as if sheriff (Ala.) 24a. 

Arkansas 

Real Estate Bank may prefer its creditors (Ark.) 42c. — holds mortgages, given to secure 
payment for stock, merely as trustee (Ark.) 45e. — may assign to trustees for the 
benefit of creditors (Ark.) 42c. 
. Creditors and stockholders of Real Estate Bank assent to assignment presumed (id.). 

Surviving original trustees of Real Estate Bank are entitled to sue on note to bank as- 
signed to the trustees (Ark.) 48b. 

Privilege of paying a debt of Real Estate Bank with state bonds, may be waived by con- 
tract (Ark.) 53c. 

Legislature may require Real Estate Bank to accept interest due on its bonds in pay- 
ment of debts (Ark.) 53a. 

Extension of time and allowing payment in instalments does not constitute fraud by 
Real Estate Bank (Ark.) 42c. 

State Bank of Arkansas is a corporation and may charge seven per cent interest on 
bond (Ark.) 43d. — is subject to legislative control and repeal (Ark.) 47c. — must 
verify its bill for an injunction and give a bond (Ark.) 52a. — does not cease to exist 
by appointment of receiver (Ark.) 46e. 

One who covenants to pay in current notes of State Bank, must show their value (Ark.) 
47b. 

Branch of State Bank may, without violating the constitution discount notes (Ark.) 45c. 

Act of branch of State Bank in issuing certificates is the act of the State Bank (Ark.) 45d. 

Notes issued by parent bank deposited in a branch, established the relation of debtor and 
creditor between the parent and depositor (Ark.) 45d. 

Notes issued by State Bank are receivable for state taxes (Ark.) 51c, 51d. 

Connecticut 

Under Act of 1863, State has no right to representation in new bank (Conn.) 118b. 
State Bank must take in special as well as general stockholders (Conn.) 118c. 



INDEX 169 

STATE BANKS— Continued 
Georgia 

Municipality cannot tax capital of State Bank, nor capital used by branches (Ga.) 138a. 
Debt due the Central Bank is within Statute of Distribution (Ga.) 145c. 
Act of 1823 does not apply to Central Bank (Ga.) 146a. 
Notice and demand are not required to bind indorser (Ga.) 145c. 

Illinois 

State bank may sue in corporate name (111.) 190c. 

Louisiana 

Authority of Port Gibson Bank to contract in Mississippi cannot be questioned under 
charter (La.) 394a. 

Mississippi 

Commissioners of the Planters Bank may lend, sue for and recover money loaned by 
them on notes (Miss.) 666a. 

Tennessee 

Bank of Tennessee was not affected by State's attempt to withdraw from the Union 

(Tenn.) 1300a. 
Courts will take juridical notice of Bank of Tennessee (Tenn.) 1291a. 
Branch of Bank of Tennessee could be moved only by the State, not by cashier (Tenn.) 

1292d. 
Bank of Tennessee taking bonds deposited to secure circulation, takes charged with a 

trust (Tenn.) 1293c. 
State is not liable to holders of notes of Bank of Tennessee, for loss or impairment of 

bonds given comptroller to secure notes (Tenn.) 1293a. —for debts of bank owned 

by it (Tenn.) 1289a. 
Bills of Bank of Tennessee issued during civil war presumed legal and are receivable for 

state taxes (Tenn.) 1304a, 1306a. 
Surety on public officer's bond might tender to State, notes of Bank of Tennessee made 

during civil war (Tenn.) 1306d. 
Payment of note by resident of loyal district to cashier in insurrection district, invalid 

by Act of Congress (Tenn.) 1292d. 
Notes of Bank of Tennessee issued after rebellion are as valid as those issued before 

(Tenn.) 1300a. 
Burden of proving bona fides is on holder of bills of Bank of Tennessee, invalid by repeal 

of statute (Tenn.) 1291d. 
Charter of Union Bank is a public law (Tenn.) 1286c. 

STATE BOARD OF EQUALIZATION 

(See Public Officers) 

STATE SENATOR 

(See Public Officers) 

STATE TREASURER 

(See Public Officers) 

STATUTES 
Acceptance 

presumed from suing (Me.) 458a, and subjects acceptor itself to burdens thereof (La.) 456b. 

Amendatory Acts 

Act for change of name is amendment to incorporating act (111.) 218b. 

Conferring new rights 

A subsequent statute cannot make the liability of the. drawer of a draft unconditional 

(Mass.) 519e. 
An act continuing a bank as a corporation, though providing for its liquidation and for 
receivers, passes all the powers of directors to the receivers (Ark.) 45a. 

Constitutionality— see Constitutional Law 

Effect 

No penalty under it shall be affected, unless contrary appears (Minn.) 647c. 

Repeal of a statute authorizing tax assessments does not destroy existing liability for 

taxes (Me.) 483d. 
Repeal of statute without saving clause nullifies it except as to act done pursuant to it 

(Pa.) 1171b. 
Repeal of act creating board of commissioners will not abate action brought by receiver 

at the instance of the board (Mass.) 532b. 



170 BANKS AND BANKING 



STATUTES— Continued 
Evidence 

An act of Congress incorporating a bank may be read on indictment as a public statute 
(Me.) 458c. 

Interpretation and Construction 

Legislative 2«fe«^ expressly declared governs (N. Y.) 968a, but not conclusive upon courts 

(m.) 190c. 

Court, in determining meaning of statute, may consider contemporaneous construction 

(N. Y.) 906c. 
Where a statute takes effect 30 days after date, limitations expressed therein run from the 

expiration of the 30 days (Me.) 468a. 
Statute, conferring powers recited in another act, incorporates powers of latter (111.) 190c. 
Class designated generally in special act entitles member to its benefit (Ark. ) 44c. 
A statute providing for a forfeiture of interest is penal (Ohio) 1158a. 
Tax Laws, passed after beginning of year, authorize tax for full year (Ind.) 259b. 

Judicial notice (see Eyidbncb) 

Charter of bank is public law and need not be proved (Tenn.) 1286c, (Va.) 1372a. 
Bank and its customer, both in foreign state, are not chargeable with knowledge of New 

York currency laws affecting contract (N. Y.) 899c. 
Where exclusive statutory remedy is necessarily confined to the sovereignty of one state, a 

foreign tribunal cannot enforce the liability (N. Y.) 954c. 

Liberal construction 

The laws of a state will, if possible, be so construed as to harmonize with the acts of 
Congress (Tenn.) 1301a. 

Parts of Statute 

Title is not part of act, but may show legislative intent (Cal.) 79c. 

A proviso may be valid, though in conflict with a general enactment (Me.) 464c. 

Directory provisions as to extension of payment need not be strictly followed (Ark.) 52b. 

Repeal 

Repeal of act by implication must be clear (La.) 426d. 

Statute inconsistent with existing statute repeals latter so far as the latter is inconsistent 

with it (N. Y.) 930c, (Ind.) 257c, (Ala.) 103d. 
Where a bank's charter was forfeited under the Act of 1843, an Act of 1844 mentioning 

the bank as an existing institution does not repeal the former act (Miss.) 674d. 
Where a statutory remedy for a right created by that statute is repealed, but the repealing 

act provides substantially the same remedy, the right may be prosecuted under the 

latter (Ohio) 1142c. 

Retroactive 

A statute cannot operate to deprive creditors of accrued rights against stockholders of an 

insolvent bank (Kan.) 339c. 
Where bank charter is forfeited during pendency of action brought by bank, subsequent 

statute, validating all acts of bank as if there had been no forfeiture, is constitutional 

and applies to that action (Pa.) 1175c. 

Revival by Statute 

Repeal of law forbidding circulation of small bank bills makes contracts regarding such 
bills vaHd (N. Y.) 912a. 

Strict construction 

Penal statute must be strictly construed (Ala.) lb. 

Provisions in statute creating misdemeanor and forfeitures cannot be extended by implica- 
tion (N. Y.) 897d. 

Where bank's charter fixes rate of taxation, the intent of subsequent legislation to change 
the rate must be clear to be effectual (Tenn.) 1308c. 

Statutes relating to banks of issue do not relate to other banks (la.) 304a. 

Statutory provision making stock transferable only on books, makes that the exclusive 
mode of transfer (Mass.) 541c. 

Wben statute takes effect 

A bank becoming insolvent under decree between the passage of a liquidating act and the 

date it became operative, is included in the provisions thereof (S. C.) 1265a. 
Bankrupt Act, sees. 19, 20 (N. Y.) 949a, 999b. 
• Bankrupt Act, 1859-60 (Tenn.) 1303c. 
5 U. S. S. at Large, 211 (Ky.) 352c. 
25 U. S. S. at Large, 436 (Wash.) 1384d. 
Ads of Congress 1879, ch. 5, sec. 21 (Md.) 495d. 
" " 1790, ch. 53, sec. 45, (id.). 
1792, ch. 27, sec. 18, (id.). 
1797, ch. 74, sec. 5, (id.). 
1797, ch. 74, sec. 5, (Mass.) 536b. 
1797, ch. 74, sec. 5, (id.). 



INDEX 171 • 

STATUTES— Continued 
When statute takes effect (continued) 
Acts of Congress 184,1, sec. 6 (Pa.) 1187d. 

of Feb. 21, 1853 (Mo.) 702c. 

" " " 1858, (Pa.) 1204d. 
" " " of Feb. 25, 1862 (N. Y.) 929b. 
" " " 1897 (N. Y.) 850a. 
U. S. R. S. sec. 885 (S. D.) 1283a. 
" " 914 (N. Y.) 993d. 
" " 1024 (N. M.) 848c. 
" " 3701 (Mo.). 725c. 
" " 5418 (N. C.) 1117a. 

Ad 0/1821, Aik. Dig. 54 (Ala.) 13d. —Ad o/1830, sec. 2, (Ala.) 4c. —Ad of 1857, 
sec. 27 (Ala.) 13b. —Ad of 1840, Dig. Ill, sees. 41, 42, (Ala.) 19c-. —Ad of Feb. 
13,1843 (Ala.) 14d. — ^rfio/1843,p.l9 (Ala.) 19b. —AdofFeb.l2,lS50 (Ala.) 26a. 
—Ad of Dec. 12, 1892, p. 95 (Ala.) 35c. —Code, sec. 4140 (Ala.) 37b, Sic— Clays' 
Dig. 109, sec. 25 (Ala.) 15c. 

Stat, of July 3, 1807 (Ark.) 41a. —Ad of Dec. 23, 1846 (Ark.) 48a. —Ad of March 31, 
1887 (Ark.) 58a. 

California 

Ad of April 11, Stat, of 1862, p. 199 (Cal.) 71b; p. 201 (Cal.) 87b, 96c. —Ad of 1870, 
p. 132 (Cal.) 68a. —Ad of April 1, 1876 (Cal.) 79c. —Ad o/ 1876, p. 729 (Cal.) 
77a. —Ad of April 6, 1876 (Cal.) 72c. —Stat, of 1877-8, p. 740, and 1886-7, p. 
90 (Cal.) 78d. —Ad of March 30, 1878 (Cal.) 67c; p. 774 (Cal.) 79a, 78c. —Civil 
Code, sec. 288 (Cal.) 82b; sec. 299 (Cal.) 87c; sec. 315 (Cal.) 74d; sec. 344 (Cal.) 
91c; sec. 574 (Cal.) 99b; sec. 632 (Cal.) 73c; sec. 702 (Cal.) 92c; sec. 1840 (Cal.) 
99a; sec. 3432j(Cal.) 93c. —Political Code, sec. 474 (Cal.) 70d, 70e; sec. 3617 (Cal.) 
82a, 76c. —Penal Code, sec. 772 (Cal.) 82c. 

Connecticut 

Ad of 1863, ch. 60, p. 52 (Conn.) 118b. —Ge//. Stat., tit. 12, sec. 191 (Conn.) 119a. 

Georgia 

Ad of 1792, sec. 10 (Ga.) 143b. —Ad of 1821, Cobb 184 (Ga.) 151b. —Ad of 1823 
(Ga.) 146a. — .^rf o/ 1832 (Ga.) 141a. — ^rf o/ 1837, sec 2, (Ga.) 149a. —Ad of 
Dec. 18, 1840 (Ga.) 138b. —Ad of Dec. 10, 1841 (Ga.) 149d. —Ordinance o/ 1865 
(Ga.) 155b. —Code, sees. 1493, 1495 (Ga.) 154a; sees. 2388, 2391 (Ga.) 175d. 
—Code of 188'^, sees. 3371-'3 (Ga.) 157c. 

Illinois 

Ad of June 1, 1853 (111.) 183d. —General Baulking Law, sec. 13 (111.) 182d; sec. 34, 
35 (111.) 182f. —General Banking Law of 18^1 (111.) 184c. —Ad of Feb. 14, 1857 
(111.) 183d, 185d. —Ad of Feb. 14, 1861 (111.) 189d. —Ad o/ 1861, p. 119 (111.) 195a. 
—Private Laws 1867, vol. 1, p. 95 (111.) 200c. —Laws of 1872, p. 296 (111.) 218b. 
—Ad of June A:, 181% (111.) 220d. —Laws of 181°i,-^. 113 (111.) 209c. —Laws of 188T, 
p. 94, sec. 14 (111.) 218b. —Statute of June 16, 1887, sec. 10 (111.) 245d. 

Indiana 

Ad of 181'k (Ind.) 246a. —Ad of 18^3, p. 52 (Ind.) 252a. —Banking Laws of 18^2 
(Ind.) 253b. —Act of fune 17, 1852, sec. 60 (Ind.) 261c. —Banking Laws <?/ 1855 
(Ind.) 253b. —Ad of March 1, 1855 (Ind.) 259a. —Ad of March 3, 1855 (Ind.) 
258b; sec. 48 (Ind.) 257f. —Ad of March 1857 (Ind.) 257c. — ^rf o/ 1867, p. 216, 
(Ind.) 259b, 260a. —Ad of March 15, 1867 (Ind.) 259c, 260a. —Ad of March 9, 
1891, p. 395 (Ind.) 275a. —1 R. S. 1852, p. 240 (Ind.) 257f. —1 ^.5. 1876, sec. 
6, p. 636 (Ind.) 264d, 264e. —R. S. 1881, sec. 723 (Ind.) 267d; sec. 2757 (Ind.) 
268c; sec. 3157 (Ind.) 269c; sec. 5516 (Ind.) 273b. —Code of 1852 (Ind.) 251b. 
—Code of Civil Procedure, sec. 78 (Ind.) 261d. —Code, sec. 749, 750 (Ind.) 262d. 
—Horner 1897, sec. 6328 (Ind.) 280b. 

Iowa 

Laws of 1863, ch. 153 (la.) 285a. —Revision, sec. 2844 (la.) 285c. —Code, sec. 460 
(la.) 284a; sec. 1885 (la.) 311a. —Code, sec. 2544 (la.) 306b. —Acts 18th General 
Assembly, ch. 153, sees. 1, 2 (la.) 300c. 

Kansas 

Laws of 1879, ch. 47 (Kan.) 338b. —Laws of 1881, ch. 104, sec. 1 (Kan.) 326b. —Bank 
Act of 1891, ch. 43 (Kan.) 329e, 331d, 339b; sec. 16 (Kan.) 335c, 328c. —Laws of, 
1891, ch. 43, sec. 21 (Kan.) 328b. —Laws (7/1891, ch. 43, sec. 26 (Kan.) 340c. —Laws 
of 189)1, ch. 47 (Kan.) 340c. —Laws o/ 1897, ch. 47, sec. 55 (Kan.) 339a. —G. S. 
225, art. 16, ch. 23, sec. 127 (Kan.) 314b. —G. S. of 1889, par. 406 (Kan.) 329d; 
par. 1192 (Kan.) 330a; pars. 1192, 1200, 1204, 1205, 1206 (Kan.) 333d, 332b; par. 
6851 (Kan.) 324b. —G. S. of 1897, ch. 18, sec. 74 (Kan.) 335b; ch.47, sec. 55 (Kan.) 



172 BANKS AND BANKING 



STATUTES-Continued 
Kansas (continued) 

339c; ch. 66, sec. 50 (Kan.) 337c; ch. 158, sec. 60 (Kan.) 335a. —Banking Ad G. S. 
1899, sec. 458 (Kan.) 339d; sec. 5271 (Kan.) 338a. —G. S. 1901, sec. 7342 (Kan.) 
340c. —Code, sec. 114, (Kan.) 332a; sec. 322 (Kan.) 317a; sees. 173, 174, 568, 569 
(Kan.) 332a. —City Act, sees. 87, 189 (Kan.) 321c. —G. S. of Kansas 1889, par. 
1192 (Mass.) 592b. 

Kentucky 

Stat. Law 249 (Ky.) 353a. — ^c/ o/ 1820 (Ky.) 355b. —Act of \&20, sec. 12 (Ky.) 
348b. —Act of 1856 (Ky.) 370b. —J7ezmti J?evenue Bitt, Act of 1886 (Ky.) 370b. 
—G. S. art. 2, ch. 92, sec. 1 (Ky.) 366d; art. 4, ch. 52, sec. 16 (Ky.) 371b; art. 
13, ch. 29, sec. 2 (Ky.) 368c. 

Louisiana 

Act of 3/arc/i 1818 (La.) 376a. —Private Act of 1821 (La.) 454d. —Stat, of April 1, 
1835, sec. 27 (La.) 405a. . 

Act of 1836 (La.) 457b. —Act of March 14, 1839, sec. 3 (La.) 391d. —Stat, of Feb. 
21, 1840, sec. 7 (La.) 403c. —Act of 1840, sec. 10 (La.) 422a. —Act of Feb. 5, 
1842 (La.) 396c, 397a, 418a. —Act of 1842, ch. 22, sec. 2 (La.) 394c; sec. 13 
(La.) 397b, p. 454 (La.) 397a. —Act of March 14, 26, 1842 (La.) 413c. —Stat, o/ 
March, 1842, sec. 24, (La.) 409a. —Act of April 5, 1843 (La.) 413c. —Act of April 
6, 1843 (La.) 406b, 411b. —Act of 1843, art. 3333 (La.) 422c. —Act of 1852, 
No. 141 (La.) 424b. —Acts of 1853, pp. 311, 335 (La.) 432b. —Act of March 15, 
1855 (La.) 427c. — ^rfo/1855, p. 352 (La.) 428d. —Act of March 18, 1858 (La.) 
427d. —R. S. 1870, sec. 275 (La.) 439b. —Free Banking Law of 18TQ, R. S. sec. 
307 (La.) 441b. —Act of 1875, sec. 3 (La.) 439d. —Act o/ 1890, No. 150, p. 189 
(La.) 453c. —R. S. sec. 1808 (La.) 448b. —Act of 1886, No. 98, sec. 28 (La.) 
450a. —Act of 1890, No. 150 (La.) 455a. —Act of 1898, No. 127 (La.) 455c. 
—Code, sec. 2895 (La.) 410d; art. 3165 (La.) 435d. —General Incorporation Ad 
(La.) 439b. 

Maine 

Ad of 1821, ch. 62, sec. 9 (Me.) 462d. —Stat, of 1831, ch. 519, sec. 28 (Me.) 464a. 
—Ad of March, 1836, ch. 233 (Me.) 459b. —Ad of 182,8 (Me.) 463c; ch. 326 
(Me.) 459c. —Ad of 3Iarch 18, 1842 (Me.) 464c. —Act of fune 9, 1849 (Me.) 469b. 
—Ad of March 16, 1855 (Me.) 471d. —Laws of 1855, ch. 164 (Me.) 477c. —Ad 
of 1867, ch. 126 (Me.) 478a. —Ad of 1877, ch. 218 (Me.) 483c. —R.S. 1841, ch. 
69; (Me.) 471c, 472b, ch. 76 (Me.) 467a, 469c; ch. 77, sec. 19 (Me.) 470b; sec. 41 
(Me.) 463a; sec. 44 (Me.) 475c. 
R. S. 1857, ch. 47, sec. 24 (Me.) 478b; sees. 46, 47, 73 (Me.) 480d, 481c, 482c; sec. 
91 (Me.) 484c; ch. 82 (Me.) 490c. 

Maryland 

Ad of 1715, ch. 23 (Md.) 498b. —Ad of 1818, ch. 177 (Md.) 495a, 496a. —Act of 
1824, ch. 199 (Md.) 495a, 496a. —Ad of 1829, ch. 170 (Md.) 495d. —Act of 184,1, 
sec. 1 (Md.) 498d. —Procedure Act o/ 1864, ch. 6 (Md.) 510c. —Act of 186^, ch. 
306 (Md.) 505b. —Ad of 1865, ch. 144 (Md.) 508a. —Ad of 1868, ch. 189 (Md.) 
510a. —Act of 1874, ch. 483, sec. 85 (Md.) 511c. —Code, art. 23, sees. 264, 264a 
(Md.) 515c. 

Stat. 1805, ch. 44 (Mass.) 518b. —Ad of 1809, ch. 37, sec. 1 (Mass.) 516b; ch. 38 
(Mass.) 519d. —Ad of 1812, ch. 57, sees. 2, 3 (Mass.) 519c. —Ad of 18Z8, ch. 14 
(Mass.) 527d. —Resolve of April 8, 1839 (Mass.) 529a. —Stat. 1860, ch. 167 (Mass.) 
545b. —Stat. 1862, ch. 224 (Mass.) 548c, 559d, 562b, 582e; sec. 4 (Mass.) 547c. 
—Stat. 1863, ch. 164 (Mass.) 548c. —Stat. 1868, ch. 315 (Mass.) 559d, 562b. 
—Stat. 1870, ch. 224, sec. 26 (Mass.) 574a. —Stat. 1872, ch. 321 (Mass.) 555c. 
—Stat. 1874, ch. 248, sec. 3 (Mass.) 558b. —Stat. 1878, ch. 261 (Mass.) 565c. 
—Stat. 1889, ch. 452, sec. 2 (Mass.) 584a. —G. S. ch. 53, sec. 10 (Mass.) 571c; 
ch. 57, sec. 19 (Mass.) 547a; ch. 108, sec. 1 (Mass.) 551d; ch. 130, sec. 8 (Mass.) 
564b. —R.S. ch. 7, sec. 7 (Mass.) 537a; sec. 11 (Mass.) 534c; ch. 9, sec. 1 (Mass.) 
528b; ch. 36, sec. 30 (Mass.) 533b; sec. 31 (Mass.) 533b; sec. 36 (Mass.) 529b; 
ch. 33, sec. 5 (Mass.) 527c; ch. 36 (Mass.) 528c; sec. 27 (Mass.) 544c; sec. 36 (Mass.) 
529b; sec. 58 (Mass.) 539a, 539b; ch. 44 (Mass.) 531a; ch. 100, sec. 22 (Mass.) 534d; 
ch. 126, sec. 27 (Mass.) 533a; ch. 133, sec. 10 (Mass.) 533a. —Stat. 138, ch. 163, 
sec. 3 (Mass.) 538b. —Pub. Stat., ch. 11, sec. 4 (Mass.) 574b; ch. 11, sec. 72 (Mass.) 
585a; ch. 13, sec. 8 (Mass.) 585a; sees. 8-19 (Mass.) 574d; sec. 20 (Mass.) 582b; ch. 
116, sec. 29 (Mass.) 583d; ch. 183, sec. 33 (Mass.) 588c; ch. 203, sec. 41 (Mass.) 594b. 

Michigan 

Act of March 28, 1836 (Mich.) 600b. —Ad No. 141, Laws of 1877 (Mich.) 612c. —Ad, 
Nc. 205, Laws of 1877 (Mich.) 619c. —Tax Laws of 1889 (Mich.) 620e; art. 195, 
sec. 11 (Mich.) 616c; sec. 33 (Mich.) 616c, 620d. —1 H. S. sec. 2369 (Mich.) 626b. 



INDEX 173 



STATUTES— Continued 
Hinnesota 

Laws of \%1^, ch. 76 (Minn.) 649a. —Laws of \%^^, ch. 76 (Minn.) 650a. —G. S. 
1894, sec. 7262 (Minn.) 646c. 



Acts oj 1883, sec. 4, p. 183 (Miss.) 665b. —Act of February 21, 1840 (La.) 400a, 
407e (Miss.) 674c, 675d, 678c. —Bank Act of 1840, sec. 7 (Miss.) 668c. —Sheet 
Acts of 18il, sec. 1 (Miss.) 679b. —Act of February 25, 1842, (Miss.) 675d. —Act 
of 1842, p. 140 (Miss.) 670a. —Ad of \?>^Z, sec. 5 (Miss.) 679a; p. 55 (Miss.) 
674b. —Ad offuly 26, 1843 (Miss.) 682c. —Act o/ 1843 {Sheet Ad, p. 52) (Miss.) 
671b. —Act of February 24:, 1844 (Miss.) 678d. —Act of February 28, 1846 (Miss.) 
676a. —ActoflSQI, p. 470, sec. 5, (Miss.) 687b. —Code of 1.89,0, sec. 498 (Miss.) 
692a. —Act of 1886, p. 35 (Miss.) 693a; p. 51 (Miss.) 691b. —Ad of 1888, p. 8 
(Miss.) 690b. -Revenue Ad 0/I888, p. 16 (Miss.) 689d. —Ad 0/1890, p. 6 (Miss.) 
690b. —Hutch, Code 328 (Miss.) 685a, 686b. —Rev. Code of 1857 (Miss.) 686b. 
—Code, sec. 1300 (Miss.) 690c. 

Missouri 

Ad of Dec. 8, 1855 (Mo.) 702a. —Ad of 1856-7, p. 17 (Mo.) 702e. —Ad of Mar. 2, 
1857 (Mo.) 701b. —Ad 0/1857, art. 1, sec. 44 (Mo.) 700d. —Ad of Nov. 23, 
1857 (Mo.) 701c. —Act of March 23, 1863, p. 5 (Mo.) 703b. —Revenue Act of 
Feb. 4, 1864 (Mo.) 705b. —Ad of 1864, p. 13 (Mo.) 706c. —Laws 0/ 1883, p. 
137 (Mo.) 743b. —Ad of 1887, p. 162 (Mo.) 738b. —Ad of 1895 (Mo.) 753b. 
—Laws of 1895, p. 120 (Mo.) 763a. —Rev. Code, 1885, p. 286 (Mo.) 702d. —Rei). 
Code', 1885, p. 289, sec. 14 (Mo.) 704c. —G. S. 1865, ch. 68, sec. 14 (Mo.) 708b; 
p. 366, sec. 14 (Mo.) 727b. —Wagner's Stat., ch. 24, p. 247 (Mo.) 709a; p. 1165, sec. 
35, (Mo.) 725c. —R. S. 1879, sec. 745 (Mo.) 726e; sec. 1350 (Mo.) 738c. —R. S. 
1889, sec. 733 (Mo.) 737a; sec. 918 (Mo.) 731c; sec. 1327 (Mo.) 724d; sec. 1350 
(Mo.) 732b; sec. 2193 (Mo.) 737c; sec. 2503 (Mo.) 740d; sec. 2758 (Mo.) 743ai 
sec. 3581 (Mo.) 747a, 749b; sec. 7448 (Mo.) 740d; art. 11, ch. 42 (Mo.) 757b. 

Montana 

Civil Code, sec. 1242 (Mont.) 770a. 

Nebraska 

Laws of 1891, ch. 50 (Neb.) 784a. —G. S. 930, sec. 94 (Neb.) 790d. —Banking Ad, Comp. 
Stat., ch. 8, sec. 35 (Neb.) 794c. —Comp. Stat., ch. 44, sec. 5, (Neb.) 789c, 794b. 
—Comp. Stat., ch. 83, art. 13, sec. 3, (Neb.) 795a. —Code, sec. 129 (Neb.) 774c; 
sec. 134 (Neb.) 773c. 

Nevada 

Revenue Law of ISei-S, p. 274, sec. 6 (Nev.) 808b. 

New Hampshire 

Laws 0/ 1869, ch. 4, sees. 1, 2, (N.H.) 814b. —Laws of 1874, ch. 71, sec. 10 (N. H.) 
818a. —G. S. ch. 213, (N. H.) 816d. —Ad of N. H. passed June 18, 1806 (Mass.) 
516c. 

New Jersey 

Ad of Feb. 16, 1829 (N. J.) 824b. — .-Jrf 0/ 1878, sec. 4 (N. J.) 830d. 

New York 

Laws of 1804, ch. 117 (N. Y.) 851d. —Laws of Apr. 6, 1813, sec. 2 (N. Y.) 851c. 
—Laws of Apr. 17, 1816, ch. 223, sec. 3, (N. Y.) 852a. —Laws of Apr. 21, 1818 
(N. Y.) 852b; p. 242 (N. Y.) 862d; ch. 236, sees. 1, 2, (N. Y,) 857a; ch. 242 (N. Y.) 
861b. —Law of Apr. 21, 1825, sec. 2 (N. Y.) 863b. —Laws of 1825, ch. 325 (N. Y.) 
858c. —Law of Apr. 2, 1829, (N. Y.) 906c, 937b; ch. 94, (N. Y.) 9i\8c.—Laws of 
1830, ch. 295 (N. Y.) 893a. —Statute of Frauds of 1830 (N. Y.) 897d, 1072a; ch. 
295 (N. Y.) 927b. —Special Law of 1834, ch. 361 (N. Y.) 923a. —Laws 0/1835, 
ch. 307, sec. 1 (N. Y.) 890a. —Usury Law of X^ZI (N. Y.) 871b. —General Banking 
Law of 1838 (N. Y.) 869d, 873a, 874c, 878c, 881d, 887b, 894d, 897d, 900d, 910a, 
914c, 917d, 938c; sec. 4 (N. Y.) 873c; ch. 250, sec. 21 (N. Y.) 918b, 928a; ch. 260 
(N. Y.) 990c, lOlOe; sees. 5, 9, 11 (N. Y.) 896b. — ^rf 0/ 1839, ch. 355 (N. Y.) 
901a; sec. 3 (N. Y.) 917d, 927b. —Laws of May 14, 1840 (N. Y.) 867a, 889b; 
sees. 4, 18, p. 306 (N. Y.) '896a, 914c, 922a; ch. 202 (N. Y.) 876d; ch. 363 (N. Y.) 
897d; sec. 4 (N. Y.) 898a; sec. 5 (N. Y.) 930b. —Laws of 1845, sec. 64 (N. Y.) 
914b. —Laws of 1849 (N. Y.) 908c; p. 340 (N. Y.) 916a; ch. 226 (N. Y.) 915a, 
916a, 921b, 923a, 925a, 931d, 1010b; sec. 27, (N. Y.) 925a. —Laws 0/ 1850, ch. 
172 (N. Y.) 910a; ch. 251 (N. Y.) 927b. —Laws of 1851, ch. 324 (N. Y.) 1009d. 
—Ad of Apr. 15, 1853 (N. Y.) 904d. —Laws of \%^Z, ch. 223 (N. Y.) 927b; ch. 
257 (N. Y.) 930; ch. 654 (N. Y.) 925b. —Laws of 1855 (N. Y.) 967d; ch. 223 
(N. Y.) 915b. —Laws 0/ 1859, p. 469 (N. Y.) 930c; ch. 236 (N. Y.) 1031c; ch. 302 
(N. Y.) 1025d; sec. 7 (N. Y.) 1021a. —Law of Apr. 29, 1863, ch. 240 (N. Y.) 
929d. —Laws 0/1865, ch. 97, sec. 10 (N. Y.) 941b, 958b. —General Savings Bank 
Law, sec. 259 (N. Y.) 1010c. —Law of Apr. 23. 1866, sec. 7 (N. Y.) 945a. —Laws 
0/1866, ch. 281, sec. 1 (N. Y.) 977b; ch. 623 (N. Y.) 1040a; ch. 761 (N. Y.) 943c. 



174 BANKS AND BANKING 



STATUTES— Continued 
New York (continued) 

—Laws 0/1870, ch. 163 (N. Y.) 963d, 968a, 977a. —Laws of 1872, ch. 9 (N. Y.) 
1025e. —Laws of 1874, ch. 324, (N. Y.) 1011c. —Laws of 1875, ch. 371 (N. Y.) 
989b, 1000a; sec. 33 (N. Y.) 1000a. —Laws of 1875, ch. 371, sec. 48 (N. Y.) 977d; 
sec. 49 (N. Y.) 993c. -Laivs of 1880 (N. Y.) 1021a; ch. 567 (N. Y.) 1023c; ch- 
596 (N. Y.) lOOld. —Laws of \882, ch. 402, sees. 186, 187 (N. Y.) 1026b ; ch. 409, 
sees. 68, 69 (N. Y.) 1029d; sec. 187 (N. Y.) 1029c; sec. 259 (N. Y.) 1013c; sec. 
273 (N. Y.) 1041c; sec. 283 (N. Y.) 1043a; sec. 312 (N. Y.) 1025b. —Laws of \88Z, 
ch. 410, sec. 853 (N. Y.) 1043d; sec. 863 (N. Y.) 1043d. —Stock Corporation Law 
1892 (N. Y.) 1077e. —Laws of 1892, ch. 687 (N. Y.) 1061b; ch. 688, sec. 23 
(N. Y.) 1070d; sec. 30 (N. Y.) 1046d; sec. 55, (N. Y.) 1060d; ch. 689, sec. 18 (K. Y.) 
1093b; sec. 52 (N. Y.) 1060d, 1078c; sec. 115, (N. Y.) 1094f; sec. 130 (N. Y.) 1046d, 
1055c; sec. 163 (N. Y.) 1093d. —Laws of 1896, ch. 908, sec. 4 (N. Y.) 1090c. 
—Laws 0/1897, ch. 441 (N. Y.) 1088b. —R. S. art. 1, ch. 8, sec. 1 (N. Y.) 909d; 
sec. 10 (N. Y.) 913b; sec. 27 (N. Y.) 872b. —1 R. S. 588 (N. Y.) 913b, 914c; sec. 
9, (N. Y.) 910a. —1 R. S. 589, sec. 1 (N. Y.) 891b; subdiv. 4 (N. Y.) 880c. —1 
R. S. 591 (N. Y.) 897d, 917a; sec. 8 (N. Y.) 902a, 956b. —1 R. S. ch. 18, tit. 2, 
art. 1, sec. 8 (N. Y.) 920a. —1 R. S. ch. 18, tit. 4, sec. 4, par. 1 (N. Y.) 1026b. 
—1 R. S. 603, sec. 4 (N. Y.) 921d, 967b. —1 R. S. 712, (N. Y.) 878c; sec. 6 (N. Y.) 
955a. —1 R. S. 768, (N. Y.) 970d; sec. 5 (N. Y.) 1036e: —2 R. S. 135, sec. 1 
(N. Y.) 910a; 378, sec. 5 (N. Y.) 1006d; 406, ch. 7, tit. 3, sees. 75, 76, p. 3 (N. Y.) 
930b, 1088e; 672, sees. 30, 31 (N. Y.) 1011a. —2 Rev. Laws 234 (N. Y.) 851a. 
—Code, sec. 113 (N. Y.) 896d; sec. 227 (N. Y.) 940c; sec. 452 (N. Y.) 1005c; sec. 
829 (N. Y.) 1022a; sec. 1822 (N. Y.) 1091b; sec. 1917 (N. Y.) 1088e; sec." 3334 
(N. Y.) 1012a. —Penal Code, sec. 601 (N. Y.) 1098c. —Greater New York Charter, 
sec. 936 (N. Y.) 1097a. 

North Carolina 

Laws of 1869-70 (N. C.) 1108b. —Ptivate Laws 1871-2, ch. 31, sec. 11 (N. C.) lllld. 
—Revenue Laws 1874 (N. C.) lllOe. —Rev. Code, ch. 36 (N. C.) 1106f; sec. 6, 
(N. C.) 1106e. 

Ohio 

Tudidal Act of 1879, sec. 12 (Ohio) 1132b. —Act of Jan. 27, 1816, sec. 11 (Ohio) 
r 1146b. —Actof\%\&, {Swan's Stat. 137) (Ohio) 1142b, 1139b. —Act of Jan. 24, 

: 1824 {Swan's Stat. 147) (Ohio) 1142b. —Act of Jan. 27, 1826 (Ohio) 1138d. —Act 
of Mar. 12, 1831 (Ohio) 1135d. —Act of Feb. 25, 1839 (Ohio) 1137a. —Act of 
Mar. 5, 1842 (Ohio) 1138a. —Act of Mar. 12, 1844 (Ohio) 1140c. —Banking Laws 

( 0/1845 (Ohio) 1144d. —Act of Feb. 24, 1845 (Ohio) 1144a; sec. 60 (Ohio) 1142c. 
—Act of Feb. 26, 1845, sec. 44 (Ohio) 1144a; sees. 59, 66, (Ohio) 1144a. —Ad of 
Mar. 8, 1845 (Ohio) 1139c. —Act of Mar. 12,1845, sec. 1 (Ohio) 1151b. —Act of 
Feb. 24, 1848 (Ohio) 1142a; sees. 1-4 (Ohio) 1146a. —Act of Mar. 9, 1850, sec. 5, 
(Ohio) 1149b. —^rfo/i)/ar. 19, 1850 (Ohio.) 1152c —ActofMar.2\,\&^\{0\ao) 
1155d. —General Tax Law of \%Z2 {GWio) 1145d. —Act of Apr. 12, 1852 (Ohio) 
1150a. —Act of May 1, 1852 (Ohio) 1149c. —Act of May 4, 1869, sec. 1 (Ohio) 
1153a. —Act of Feb. 26, 1873, sec. 16 (Ohio) 1158a. —Act of Apr. 25, 1898 (Ohio) 
1163a. —Act Regulating Judicial Proceedings, sec. 8 (Ohio) 1131c; sec. 9 (Ohio) 
1132c. —Swan's Stat. 100, sec. 64 (Ohio) 1147c; 147 (Ohio) 1138d; 916 (Ohio) 
1136d. —R. S. sec. 2765 (Ohio) 1159a. —Code sec. 97 (Ohio) 1155a; sec. 371 
(Ohio) 1154b. —Banking Act (N. Y.) 922b. —R. S. 99, sec. 61 (N. Y.) 944b. 

Oregon 

Code (Hills) sec. 3276 (Ore.) 1168a. 

Pennsylvania 

Act of Mar. 30, 1811 (Pa.) 1185c. —Act of 1814, art. 17, sec. 4 (Pa.) 1171a. —Act 
of Mar. 21, 1814, sec. 13 (Pa.) 1171b. —Act of Mar. 25, 1824, sec. 3, art. 11 (Pa.) 
1183a. —Act of Mar. 25, 1831 (Pa.) 1178d. —Act of 1835-6, P.L. p. 39 (Pa.) 
1179b. —Act of June 16, 1836 (Pa.) 1178e. — 7(z^ Zaze/ o/ 1844, sec. 32 (Pa.) 
1187c. —Act of 1845 (Pa.) 1200d. —Act of 1846, sec. 1 (Pa.) 1184c. —Act of 
Apr. 5, 1849, P. L. 426 (Pa.) 1204e, 1232c. —Banking Law of Apr, 16, 1850, P. L. 
477 (Pa.) 1188d, 1207c, 1207d, 1212d, 1226c. —Act of May 2, 1850 (Pa.) 1189c. 
—Act of iVav, 1858 (Pa.) 1202b. —Crimes Act of 1860, sec. 64, P. L. 399 (Pa.) 
1221d. —Free Banking Act o/ 1861 (Pa.) 1213d.' —Act of Apr. 12, 1867 (Pa.) 
1201d. —Act of Apr. 2, 1868 (Pa.) 1201d. —Ad of Mar. 31, 1870 (Pa.) 1213b. 
—Ad of May 23, 1874, P. L. 239, sec. 20 (Pa.) 1231a. —Ad of 1887, P. L. 185, 
sec. 5 (Pa.)'l243c; P. L. 271 (Pa.) 1231c. — ^rf o/ 1889, P. L. 145 (Pa.) 1236c, 
1247c. —Ad of June 1, 1889, P. L. 420, sec. 1 (Pa.) 1230a. —Ad o/ 1891, sees. 
6, 7 (Pa.) 1235d. —Act of June 8, 1891 P. L. 229 (Pa.) 1248e. —P. L. of 1889, 
ch. 651 (R. I.) 1256d. —R. S. ch. 126, sec. 47 (R. I.) 1251a. 

South Carolina 

Ad of 1843 (S. C.) 1264a, c. —Ad of Dec. 21, 1865 (S. C.) 1264. —Ad of \&Q9> 
(S.C.) 1266b. -3 Stat. 470, sec. 3 (S. C.) 1257d. —Executor's Ad, P. L. 494 (S. C.) 
1258d. —General Cmporation Act 19, stat. 540 (S. C.) 1272b. 



INDEX 175 



STATUTES— Continued 
South Dakota 

Comp. L. sec. 1665 (S. D.) 1278d; sec. 3920 (S. D.) 1274a; sec. 5468 (S. D.) 1279b. 
— /.awi 0/1881, ch. 31 (S. D.) 1280a. —Laws o/ 1895, ch. 65 (S. D.) 1282b. —Civil 
Code, 1830 (S. D.) 1278b. —Incorporation Laws of South Dakota (Vt.) 1366b. 

76I1I16SS66 

Act of 1801, ch. 19 (Tenn.) 1284c. —Act of 1821, cb. 197, sec. 5 (Tenn.) 1285c. 
—ActofX%2Q (Tenn.) 1286a. —Act of 1832, ch. 9 (Tenn.) 1285b; sec. 22 (Tenn.) 
1287a. —Act of 1855, ch. 250, sec. 11 (Tenn.) 1290c. —General Banking Act of 
1859-'60 (Tenn.) 1303c; cb. 129 (Tenn.) 1311a. —Act of May 1, 1859 (Tenn.) 
1290d. —Act o/ 1860, cb. 27, sec. 30 (Tenn.) 1291c. —Revenue Law of May 24^, 
1865, cb. 8 (Tenn.) 1293a. —Act of Mar. 21, 1873 (Tenn.) 1304a. —Act of Mar. 
24,- 1875 (Tenn.) 1304b. —Attachment Laws (Tenn.) 1289a. —Act of 1875, p. 
189 (Tenn.) 1307a. —Revenue Acts of 1881-'83 (Tenn.) 1308c. —Code, sec. 50 (Tenn.) 
1301b; sec. 541 (Tenn.) 1293a; sec. 2779 (Tenn.) 1300b. 

Actof\9.4A (Hart Dig. art. 38) (Tex.) 1321a. —Act of Apr. 14, 1883 (Tex.) 1328c. 
—Act of Mar. 31, 1885 (Tex.) 1327c. — R. S. 1879 (Tex.) 1325a; art. 4682, 4684 
(Tex.) 1325b. —R. S. sec. 5063-'64-'79-'80-'81, (Tex.) 1339a. 

Vermont 

Act of 1840 (C. S. p. 495, sec. 87) (Vt.) 1354a. —Act of 1865, No. 6, sec. 1 (Vt.) 
- 1356b. —Laws of 1886, No. 79 (Vt.) 1366a. —Tax Law of 1896 (Vt.) 1366c. 
—G. S., cb. 34, sec. 47 (Vt.) 1356a; ch. 83, sec. 18 (Vt.) 1358b. —Stat, o/ 1868, 
No. 157 (Vt.) 1359c. 

Virginia 

Statute of Usury (Va.) 1368d. —Act of Feb. 24, 1816 (Ky.) 351b, (Va.) 1370b. —Act 
of Mar. 19, 1832 (Va.) 1371a. —Act of Mar. 22, 1837 (Va.) 1372a, 1371d. —Act 
of Mar. 29, 1862 (Va.) 1374a. —Act of May 16, 1862 (Va.) 1374a. —Acts of 
1865-6, p. 204 (Va.) 1372d. —Act of Mar. 19, 1882 (Va.) 1370c. —Act o/ 1883-4, 
p. 568, sec. 17 (Va.) 1380c. —Act of 1889-'90, p. 197 (Va.) 1381a. —1 Rev. 
Code, ch. 128, sec. 103 (Va.) 1371a. —2 Rev. Code, 111 (Va.) 1368a. 

Washington 

Bat. Code, sec. 4825 (Wash.) 1388d. 

West Virginia 

Act 0/1875, sec. 54 (W. Va.) 1396d. —Code, sec.''.64 (W. Va.) 1396c. 

Wisconsin 

Banking Law, sec. 20 (Wis.) 1403c. —Laws of 1859, ch. 160, sec. 9 (Wis.) 1402c. 
—Act of 1865, ch. 400 (Wis.) 1407b. —Laws of 1887, ch. 435 (Wis.) 1417a. — R. S. 
ch. 134, sec. 91 (Wis.) 1403d; ch. 143, sees. 25, 26 (Wis.) 1401a; ch. 148 (Wis.) 
1403d; sec. 1 (Wis.) 1404a; ch. 166, sec. 1 (Wis.) 1407c; sec. 693 (Wis.) 1418c; sec. 
1765 (Wis.) 1410b. —R. S. 1858, ch. 6, sec. 12 (Wis.) 1398c; sees. 20, 24, subdiv. 
16 (Wis.) 1428c; sec. 4230 (Wis.) 1412a; sec. 4252 (Wis.) 1428a; sec. 4258 (Wis.) 
1419d: sec. 4541 (Wis.) 1409b. —S. & B. Ann. Stats, sees. 3216, 3217 (Wis.) 1415c. 
—General Banking Laws of New York, 1838, sec. 24, (Wis.) 1405a. —Act of Apr. 
19, 1852 (N. Y.) 916b. 

Wyoming 

Laws of 1890, ch. 50 (Wyo.) 1430a. —R, S. 1001 (Wyo.) 1431b. 

STOCK 

Assessment 

Decision of comptroller conclusiTe as to amount (Cal.) 83a. 

Liability. Full paid stock not liable to assessment (Tex.) 1330c. Stock held by State not 
liable until all assets of the bank are exhausted (La.) 415b. Stockholder not liable for 
assessments not due (Nev.) 809a'. Assignee liable for future assessments (Md.) 493a, 
and for past assessments, when he takes with notice (Mo.) 765c. Relief on ground of 
trusteeship, the trusteeship must appear on the books (Conn.) 121d. Interest is pay- 
able on assessment against stockholders of insolvent national bank, from date of lia- 
bility (Neb.) 801a. Action will lie for assessment on stock assigned and accepted, 
though certificate not delivered (Mich.) 633a. 

Assignment . , , 

Definition. An agreement between pledgor and pledgee to leave stock m a bank as col- 
lateral is not an assignment (Mo.) 742c. 

Requisites. Transfer on corporate books not essential (Minn.) 640b; contra, where stock 
is partially unpaid (Ind.) 247c. Proof of contract must be made before blank assign- 
ment can be filled in (N. Y.) 893c. 

Rights of assignee same as those of assignor (Md.) 499b. 

Title passes on assignment (Mo.) 742c, but assignment is not necessary in the case of 



176 BANKS AND BANKING 



STOCK— Continued 
Assignment ( continued )_ 

executors (Wis.) 14230. — does not pass unless by-laws are complied with (Conn.) 
113a. 

Attachment— see Attachment 

Capital stock 

not increased by purchase of overissued stock as an investment (Ky.) 352d. 
Certificate of amount paid in cannot be contradicted as to creditors (Nev.) 809b. 
Deposits authorized to be treated as payment on stock are capital stock (Ky.) 353e. 

Certificate 

A ssi^nmeni oi certifLcate equivalent to delivery of stock (Ky.) 358b, and assignriieut and 
delivery is complete as to national bank, unless it has a valid reason for refusing to 
register the transfer (N. Y.) 1011b. 

Cancellation not allowed where bank has accepted a surrender of certificate from pledgee 
and issued a new one with knowledge of the pledge (Neb.) 793c. Bank must issue new 
certificates for those canceled by it for forgery in transfer (N. Y.) 894c. 

Issuance wMa. knowledge, conclusively presumed by bank officer's indorsement (Ctil.) 83a. 

Liability of stockholder for debts is the same though certificate is unrecorded (111.) 204b. 

Measure of damages for refusal to issue a certificate is the market value at time of de- 
mand (Mass.) 523b, or the highest market price after demand (N. Y.) 909b. 

Nature of. Merely evidence of ownership of stock (La.) 429c. 

Possession of certificate not possession of stock (Ind.) 267c; nor does sheriff obtain 
possession of certificates by notice to cashier of levy under execution (La.) 417d. 

Purchaser with knowledge that his vendor bought with trust funds, cannot hold certificate 
against the cestui que trust (Neb.) 793c. 

Reformation allowed where stock is issued in wrong name (Wis.) 1411c. 

Relationship of bank holding certificate to owner is that of trustee (N. H.) 812b. 

Remedy. Equity will decree delivery of stock from trustee to owner (N. H.)812b. Trover 
will lie for certificate (Pa.) 1175d. 

Reservation printed on the certificate cannot give an equitable lien against innocent 
transferee of stock (N. Y.) 109 5e. 

Title and negotiability are conclusively presumed against bank issuing stock on script 
(Ky.) 346e. — cannot be asserted by the owner against the pledgee who receives stock 
from one having a blank power of attorney to sell (S. C.) 1263b. Possession of cer- 
tificate, purchase and payment of stock are presumptive evidence of title (Wis.) 1411c. 

Warranties. One signing a certificate represents the existence of the institution issuing it, 
that he is the officer represented, that stock is full paid and owned by the holder of the 
certificate (Utah) 1343c. 

Conversion 

Evidenced by cancellation of certificate and refusal to issue others (Mo.) 751b. Claim by 

bank to dividends on pledged stock and right to vote it, is not conversion (Tenn.) 

1307b. 
Measure of damages is value of stock at time of conversion with interest (Cal.) 83b, 

(Tex.) 1330c, and dividends are no part of damages except on special demand (Cal.) 

83b. 
Subject of. Bank may convert its own stock (Cal.) 83b. 
Time of. When demand for recognition is refused (Tex.) 1330c. 

Definition 

"Shares" and "stock" are convertible terms (Tex.) 1321c. 

Stock is personal property (Ind.) 261c, (N. Y.) 946a, and subject to execution (Ind.) 
254a, or mortgage (Ind.) 264d. 

Dividend 

Acceptance gives stockholder good title, though dividend be unearned (N. Y.) 990c. 

Declaration of dividend not compelled by court (N. Y.) 1063c. — imports a contract to 
pay (N. Y.) 989d. Directors are liable for refusal to declare (N. Y.) 1054a. 

Fund from which payable. Not payable from capital (N. C.) 1104b. 

Law governing. Lex loci contractus (N. Y.) 989d. 

Payment. Credit of unearned dividend is not payment (N. Y.) 884c. Dividend payable 
in "New York state currency" is payable in cash (N. Y.) 926c. Savings bank, under 
statute, cannot pay over five per cent until acquiring surplus (N. J.) 830d. Applica- 
tion of, not bound to be made by bank where executor has power to transfer (Mass.) 
536d. Interest is allowable on dividend (Mich.) 626b. If payment is an advance divi- 
dend, it carries interest to time dividend is declared (N. Y.) 910b; where payment of 
subscription is made in bonds, the bank obligating itself to apply dividends in payment 
of interest, interest must be paid on the bonds, even though no dividend is declared 
(La.) 383b. 

Pledged stock. Dividend on stock pledged is applicable to the debt (Ohio) 1156a. Bank 
must account to pledgor (Tenn.) 1307b. Bank is entitled to protection by notice of 
pledge (W. Va.) 1397a. 



INDEX 177 

STOCK— Continued 
Dividend (continued) 

Remedy. Action lies by original subscriber in favor of equitable transferee, to recover 

dividends notwithstanding a prohibition against transfer within a year (Mass.) 523a. 
Right to. Creditor not receiver is entitled to dividend (N. Y.) 928d; also assignee or 

transferee where stock is assigned as security (Me.) 490a, (Neb.) 778c. 
Right to withold for debt does not extend to full paid shares transferred with notice- 
prior to debt (Mass.) 523a. Directors may withhold (La.) 377b. 
Unpaid remains part of bank's fund (N. Y.) Q-ila. 

Gift— see Gift 

Increase 

Consent of stockholders not compelled by directors (111.) 233d. 

Exonerates sureties on cashier's bond for default occurring after new capital is paid in. 

(Mass.) 544c. 
Ownership of stockholders is proportional (Mass.) 515d, (S. C.) 1259c, but stockholder- 

neither subscribing nor offering to pay for increase, is not entitled thereto (Pa.) 1190b.. 



Measure of damages for failure is market value of shares when demand was made (Mass. )■ 
515d. 

Officer signing certificate is liable for injury sustained by fraud (Utah) 1343c. 

Rem-edy, as for conversion, given on cancellation and refusal to issue new stock (Mo.) 
751b. 

Right to issue presumed from signature and seal of bank's officers (Neb.) 901a. — to re- 
issue not extinguished by bank's purchase of its own stock (N. Y.) 914b. — to pro- 
rata shai-e must be exercised within reasonable time (Tex.) 1339c, and charter pro-- 
visions as to original issue are not applicable (N. Y.) 914b. 

Transfer of mortgage for stock, and additional issue of stock to transferrer not usurious. 
(N. Y.) 894d. 

Lien 

Attaches on last day of grace of unpaid note (Pa.) 1194d. 

Bank can hold a dividend, for debt (Me.) 482b. — cannot sequestrate stock of one indi- 
vidual to pay debt of another (Pa.) 1183a. 
Discharge effected by notice of assignment (Ky.) 358b, or as to innocent third persons, 
injured by bank's negligence in allowing transfer (R. I.) 1254d. — not affected by ac- 
cruing of new debt (Ohio) 1141c. 
Enforcement not impaired by delay in bank's organization (N. C.) 1123d. — by debtor's. 

assignment (Va.) 1377a. 
Extent. ^/>//2>j to purchaser with or without notice (Ark.) 55a, (Ga.) 138c, (Pa.) 1173c.. 
— to equitable owner (Ala.) 30c, but only to stockholder's actual interest (R. I.) 
1254d. — to assignee (Pa.) 1194d, of stockholder assenting to bank custom (Pa.) 
1172a, or as to other debts reserved in certificate (Cal.) 72b. —to debt due from 
a firm of which the stockholder was a member (Mich.) 624c. — to stock of individ- 
ual for partnership debt (N. Y.) 909b. — where debt is less than value of stock. 
(Pa.) 1175d, or amount of deposit (Pa.) 1177c. 
Does not apply to indirect indebtedness (N. C.) 1123d. — to stock given as security 
for loan (Minn.) 640b. Embraces debt not due when transfer is demanded (N. Y. ) 
926a, (Ohio) 1134b, (Pa.) 1175b; contra (Md.) 502b. Cannot be divested by vol- 
untary sale of stock (N. Y.) 909b, or by sale on execution (Pa.) 1193a. 
Judgment creditors have right only to interest of their debtor when lien attached (Ind.) 

264d. 
Pledgee holding assignment of stock without notice of lien is entitled to stock (Mo.) 

742c. 
Priority. Bank's lien superior to right of judgment creditors (la.) 296c, and to lien of 
debtor taking the stock as collateral (Ky. ) 372b. Bank applying proceeds of stock to 
debt is postponed to general creditors (Ky.) 359b. 
Requisites. Stock must be transferred to debtor on the bank's books (Ind.) 253a. Pos- 
session of its own stock gives bank no lien (Ky.) 346e. Notice of lien need not appear 
on the certificate (Ark.) 55a. By-laws must be posted as required by law (la.) 299d. 
Authentication unnecessary to subject stock, owned by deceased defaulter, to lieni 
(Ark.) 57d. 
Right exists only in bank of issue (Pa.) 1216b, and for its own benefit (Ky.) 372b, 
(R.I.) 1250c. —given by statute (Ga.) 154a, (Mo.) 502b, (N. Y.) 1051b, or by charter- 
(Ala.) 30c, (Md.) 494b, 499b, 502b, (Ohio) 1134b, (R.I.) V2.Z?,&\ contra (N. C.) 1103. 
Special lien by attachment continues until after dissolution of attachment (Me.) 482b. 
7Va«j/«'riff takes subject to lien (Mich.) 624c, (N. Y.) 909c. —o/" judgment against stock- 
holder holds subject to lien on stock (Pa.) 1193a. —takes free from lien, if without 
notice (la.) 299d, (Miss.) 687c. 
Validity. Banking Act does not deprive bank of lien for bona fide loan (Kan.) 339d.. 
Lien invalid as to stock in hands of second assignee (Ind.) 253a. Unauthorized reser- 
vation of lien, printed on stock certificate, is invalid (N. Y.) 1095e. 
Waiver. Lien is waived by permitting a transfer (Md.) 495b. Certificate transferable at. 



178 BANKS AND BANKING 



STOCK— Continued 
lien (continued) 

the bank in person, or by attorney does not waive the lien (Md.) 502b. Waiver sub- 
ordinates bank lien to other rights (Ky.) 358b. 

Purchase 

Bank may purchase its own stock (Md.) 500e, (Wash.) 1385c; contra (Kan.) 314a, 

(Minn.) 643c, (N. Y.) 923a. 
Directors may purchase bank stock in their own right with bank's idle capital (Ga.) 137d, 

and stockholders obtain no preference on such sale (id.). 
Trust company cannot purchase its own stock out of impaired capital (Conn.) 122b. 
Fraud of president does not inake bank or its assignee liable to purchaser (Minn.) 644d. 
Remedy of maker of note, given to cashier for purchase of stock may be by recoupment 

for loss on purchase by cashier for his bank's benefit (Ga.) 164c. 
Title. Innocent purchaser obtains good title (Minn.) 644d. Stock bought with money 

loaned by a bank belongs to purchaser (la.) 296d. Does not pass on omission to 

make stockholder's heirs parties to a proceeding to sell (La.) 452b. 

Heduction 

allowed under charter (Tenn.) 1302a, or statute in which case legislative consent is not 
required (N. Y.) 938c. 

Burden of proof is on subscriber to prove reduction (Miss.) 682a. 

Consent to reduction allows recovery of premiums only on the reduced number (La.) 389c. 

Effect of reduction does not change stockholder's indebtedness (La.) 453a. 

Not allowed where it would work an impairment of capital (Ind.) 273d, or where prop- 
erty mortgaged as security depreciates (La.) 400c. 

^ale 

may be made by corporation (Ohio) 1133b, (Pa.) 1180c. — by stockholder so long as 
bank is a going concern (La.) 447d. 

to bank of its own stock is ultra vires (Cal.) 77c. 

by director to insolvent bank is invalid (La.) 379b, (Mo.) 716b. 

under statute after time when proposals could be legally received is void (Mo.) 706e. 

of national bank stock under execution is valid (Ala.) 39c, 

by sheriff 'm. suit instigated by bank estops it to deny purchaser's title (S. C.) 1269a. 

to a bank of shares of its own stock does not thereby extinguish them (Cal.) 77c. 

of trust stock as collateral with notice renders bank liable to new trustees and cestui 
(Mass.) 580b. 

cf stock reported sold can be denied by cashier, where sale prevented by injunction (Me.) 
473c. — by president representing that he has no claim against bank estops him 
from later asserting claim (Neb.) 774d. — unpaid for renders title conditional, but 
does not oblige purchaser to pay subscription price (N. Y.) 996a. — when illegal 
renders promise to pay nudum pactum (Yt.) 1358d. — when illegal by statute, vendee 
may recover unless in pari delicto (Pa.) 1200a. — when fraudulent may be annulled 
by bank's assignee (Mo.) 716b, and no rescission of the contract is necessary (id.). 
— must be rescinded before action for deceit ( Cal. ) 77c. — may be rescinded for misrep- 
resentations of cashier (Tenn.) 1313b. — »o/ rescinded for two years constitutes laches 
(Mich.) 630d. — as collateral by broker for bank does not oblige him to inquire as 
to bank's title (N. Y.) 1002c. 

Option to sell is a privilege and time is of the essence of the contract (Nev.) 810a. 

Stock book 

Bank is liable for failure to keep stock list (Md.) 499a. 

Subscription 

is valid after payment of first call (Miss.) 681a. 

is trust fund and not subject to limitations (Miss.) 682a. 

Action 

may be brought at law by receiver (N. Y.) 884c, 937a; contra, in chancery (Miss.) 
678a. — by president (N. Y.) 875a. — by bank commissioners (Ky.) 348f. — by 
subscriber to recover money paid for stock, where the statute relative to increase 
of stock was not complied with (Mo.) 734a, notwithstanding the subscriber had 
knowledge (Mo.) 734b; or where cashier fails to properly apply an instalment 
(Wyo.) 1429a. 
may not be brought by receiver after six years (Mass.) 545b. — State where all stock 

is taken even though there was fraud in chartering the bank (Ind.) 252b. 
Defense not constituted hj violation of law by stockholders (Ohio) 1140d. — by bank's 
illegal purchase and sale of its own stock (Mo.) 717d. — by lack of judicial deter- 
mination of corporate indebtedness (Wash.) 1388c. — by fact that note was given 
for stock in violation of law (N. H.) 812d. — by surrender of worthless stock of 
an old corporation (Mo.) 739b. — by promise that payment of note would not be 
enforced (Me.) 465b. Illegal passing and receiving bank notes is a defense (Mo.) 
702a. 
Instituting action twelve years after failure of corporation is laches (Ohio) 1135a. 
/'njo/ of unpaid subscription need not be given against decedent's estate (Nev.) 809d. 



INDEX 179 

STOCK— Continued 
(Subscription (continued) 
Action (continued) 

Statute of Liinitations begins to run from time fixed for payment by charter (La.) 
421b. 
Agent exceeding his authority deprives subscriber of right to recognition (Md.) 502a. 
— has no authority to make agreement to raise subscription price of stock on note 
held by subscriber (id.). 
Apportionment. Commissioner's decision is final (Conn.) 117a. 
Assessment regularly levied on stockholder in home state is binding (Mass.) 595b. 
Assignee alone can collect on bank's assignment (Ga.) 160d. 
Books. Directors are chargeable with knowledge of entries (Tenn.) 1302a. 
■ Calls not necessary preliminary to creditor's bill (Nev.) 809c. — may be made on stock 
subscription (Ga.) 142a. — may be made on unpaid subscription (Nev.) 809c. — on 
unpaid subscription set Statute of Limitations running (Nev.) 809c, (Tenn.) 1302a, 
(Tenn.) 1303c. — m,ay not be made on stock held by State until all bank's assets 
are exhausted (La.) 415b; or against bank purchasing its own stock at judicial sale, 
more than any other purchaser (La.) 452a; or against purchaser of stock, title to 
which did not pass (La.) 452b. — when required by charter, action against subscriber 
does not accrue until call and notice (Ga.) 159b. 
• Cancellation of subscription may be had on ground of fraud (La.) 380a. — is not barred 

by acceptance (id.). 
■Commissioners authorized to receive and apportion stock do not have to give some stock 
to every subscriber (N. Y.) 863a. — may determine what is a bona fide subscription 
to bank stock (Ga.) 144a. — are released from further duties when books are closed 
and money deposited (S. C.) 1262c. — cannot arbitrarily exclude subscribers (N. Y.) 
855d. 
Consideration by promise to become director and give bank business will support bank's 

promise to give shares (Neb.) 772b. 
Estoppel is created by certificate of subscriber seeking to deny his subscription (N. Y.) 

921a. 
General assignment passes subscriptions to bank's capital stock as part of its assets 

(Mo.) 739b. 
JLiability for stock subscription is purely legal (Miss.) 678a. — to subscribe whole capital 

stock is not implied when some shares are subscribed for (Cal.) 71d. 
J'ayment 

may be made with money loaned by the bank issuing the stock (Miss.) 672b.' — by 
surrender of stock (N. Y.) 914b. —prima facie as against third persons by draft 
secured by collateral (Mass.) 523b. — by notes and is not void as against law or 
public policy (Cal.) 71a; but the presumption is that the note was given for an 
ordinary debt, not for stock subscription (111.) 182b, and it is no defense that 
full amount of capital independent of deposits was subscribed (Ky.) 353e. — by 
bond and mortgage where capital may be so invested (Fla.) 134a. 
may not be m,ade by notes of stockholders and directors indorsed by each other 

(Term.) 1302a. 
otherwise than by instalm.ents, may be provided for by organizers (N. Y.) 1054d. 
is proinised by act of subscription (N. Y.) 937a, notwithstanding a mortgage was 

given as security (La.) 452a. 
in depreciated issues of bank should be valued by comparison with legal tender notes 

at time of payment (Tenn.) 1303c. 
of ten per cent of stock subscription required by charter is a condition precedent (Miss.) 

672b; but does not apply to sale of surrendered stock (Fla.) 134a. 
by third person puts him in stockholder's shoes as to rights and obligations (Tenn.) 

1302a. 
by discounting note contrary to statute does not give right to obtain cancellation 
of note (Mich.) 598d; nor can indorsers on stockholder's notes avail themselves of 
charter provision as to debts due bank (R. I.) 1249a. 
after lapse of time will be presumed (Me.) 465a. 

.of instalment is forfeited by failure to pay subsequent instalments (La.) 376c. 
relieved by statute does not constitute unpaid instalments a trust fund for payment 

of debt (Ga.) 146b. 
can be deferred by State until expiration of charter allowing it to pay when conven- 
ient (N. C.) 1104b. 
can be regulated by commissioners when time is not otherwise fixed ( Ga. ) 144b. 
Mortgage security does not relate to subsequent transfers (La.) 400c. — renders mort- 
gagor an original debtor (La.) 452c. — does not make shares so secured paid up 
shares (La.) 453a. — is liable in hands of a third possessor (La.) 425c, and not 
affected by transfer of stock subsequent to transfer of property (La.) 431b. — is 
defeated Jby tax sale (La.) 451c. — rejected by directors in good faith cannot be 
forced on them (La.) 380b. — does not pass title where mortgage is delivered with- 
out authority and before performance of conditions (N. Y.) 903a. —gives mort- 
gagee right to seizure, sale and purchase of bank stock (La.) 423c. —for stock 
loan, when enforced does not release mortgage for stock subscription (La.) 425d. 
— may be enforced though personal security also was taken (Ark.) 49b. 



180 BANKS AND BANKING 



STOCK— Continued 
Subscription (continued) 

Payment (continued) 

5/fl;/wfe forbidding certificate until subscription paid does not exempt subscriber (Nev.) 
810a. 

Reapportionment is not allowed except on demand and refusal (S. C.) 1262c. 

Release is not effected by sale of stock under a mortgage (La.) 452a. — by dissolution 
of bank (Miss.) 681a. —by defective incorporation (Ohio) 1143b. —by attempted re- 
duction of capital stock (Kan.) 329c; though an intention to grant a release may be 
proved by an agreement among associates at time of subscription (N. Y.) 908b. 

Right of subscriber is merely to become a stockholder (Ind.) 247c, and depriving stock- 
holder of right to subscribe to new stock is a legal injury (Pa.) 1188c. 

Stockholder liable for unpaid stock can be reached only by special execution in default 
of assets of bank .(Mo.) 717b. 

Subscribers are not creditors (Conn.) llOd. — acquire equal rights to distribution of 
stock (N. Y.) 855d. — are not liable for subscription in bank violating the law (Mo.) 
702a, or on stock transferred to others by bank's consent (N. Y.) 908b. —are not 
prevented by their subscription from suing bank (Wyo.) 1429b. 
Withdrawal not allowed (Conn.) llOe; contra when auditor receives security (111.) 182d; 
— value of shares in co-operative bank may be reached by trustee process (Mass.) 
582c, which will issue without notice (id.). 

Ticket 

received by bank for consignments cannot be applied to pay debt of consignee (111.) 
228b. 

Title 

is equitable where holder has blank power of attorney to transfer (N. Y.) 901b. 

vests when bank takes stock as security for loan with blank power of attorney to transfer 

(Tenn.) 1307b. — in husband on marriage (Conn.) 113b. 
derived through Confederate government falls with the government (Ga.) 153c, but no 

title was divested by confiscation under act of that government (La.) 450c. 

Transfer 

may be made by directors (N. Y.) 914b; contra (Vt.) 1350a. — by president to himself 
to secure a debt (la.) 288c. — by stockholders of insolvent corporation (Tex) 1324c. 
'—by shareholder in national bank, to his wife (D. C.) 131c. — by guardian, of ward's 
stock on the books (Va.) 1369d. — by bona fide holder on presenting certificate reg- 
istered in decedent's name together with probate judge's certificate that executor might 
sell (S. C.) H66a. — to bona fide holder under forged certificate and he may not be 
compelled to return (Mass.) 561d. — by indorsement and delivery (Me.) 476a, and 
where indorsement must be in the presence of witnesses their signatures are required 
(Me.) 480d. — by power of attorney (Md.) 502c, which inures to benefit of bona 
fide holder even after maker's death (N. Y.) 901b, and the erroneous designation of 
transferee as his principal by attorney does not defeat the transfer (Md.) 493a. — by 
executor of holder, by power of attorney (Mass.) 536d. — frv trustee, though it consti- 
tutes a breach of trust (Md.) 500c, and fact that stock is entered on the books to trus- 
tees will not defeat their transfer to themselves as trustees (id.). — to president of 
a bank and is held to be a transfer to the bank (N. Y.) 901b. 

may not be m.ade under power of attorney given by a lunatic (Md.) 502c. — o/" stock, 
held nominally to qualify as director, and to avoid lien of bank (N. J.) 829a. — to 
increase vote (Vt.) 1350a. — by stockholders without consideration on day before 
bank's failure (N. Y.) 923a. —in fraud of creditors (Me.) 474b; but transfer of stock 
as security absolute on its face is not fraud per se as against creditors (Mass.) 520d. 

may be enforced in equity (Va.) 1377b. 

to cashier as security makes him trustee (Mass.) 520d. 

deprives transferrer of his right to sue as stockholder (Ohio) 1163d. 

necessary from officer on execution sale (Conn.) 113b, and where no bond is given to 
stay execution, bank may transfer stock at execution sale, subject to no liability (La.) 
413a. 

on books necessary to vest legal title (R. I.) 1253a, (Ohio) 1162e; under statute (Mass.) 
574a; contra (N. Y.) 870b. — is exclusive method under statutory provision (Mass.) 
541c. — is sole method of valid assignment (Ind.) 247c. — due to holder of stock as 
collateral (Minn.) 640b; holder of power of attorney (Mass.) 564d; second assignee, 
though intermediate owner owed bank (Ind.) 253a. —^j'z'^i transferee possession (Ind.) 
267c, and passes title even though no certificate is issued (Me.) 465a, 465b. Failure 
to record gives assignee only equitable title (Ohio) 1162e, (R. I.) 1253a; renders director 
competent witness (N. Y.) 854c; postpones transferee's rights to any adverse equity 
accruing against record owner after assignment (Ohio) 1162e; but an unrecorded 
transfer is superior to subsequent attachment against transferrer (N. D.) 1127b. 

cannot be compelled by mandamus (R. I.) 1250a. 

absolute on its face may be shown to be as collateral (Mich.) 630a. 

tnay be refused when stockholder is indebted to bank on notes, one of which has not 
matured (Ohio) 1134b. — where notice of assignment is not given by assignee until 



INDEX 181 



STOCK— Continued 
Transfer (continued) 

after a loan is made by bank to his vendor (N. Y.) 926a. — where attachment is levied 
against the record owner (Mass.) 541c. — where demand is not made until after as- 
signor's debt to it is due (Mich.) 624b. Bank is liable for refusal (Ky.) 360a, and 
ratifies refusal by defending suit (N. Y.) 870b. Demand by assignee is not necessary 
when assignor is refused (N. Y.) 1011b, and remedy may be had at law or in equity 
(id.). Measure of damages is highest price of stock after demand and before trial 
(N. Y.) 870b, and where stock depreciates, the difference between value at time of 
refusal and at time of trial (La.) 400c; but where refusal is to pledgee, bank is not 
responsible for any deficit (Ohio) 1156a. Restraint of injunction constitutes good 
defense (N. Y. ) 936c. Second assignee may bring action for damages (Ind.) 253a. 
Transferrer not necessary party in suit by assignee (Mich.) 624c. 

Designation in ledger of shares transferred is not improper for failure to state number 
of shares (Me.) 476a. 

Ejfect. Transferee takes subject to all liens and liabilities of transferrer (Mo.) 743a, (N. Y.) 
946a. An ambiguous indorsement is to be construed against vendor (Me.) 476a. 

Evidence of custom to execute blank transfers is competent to prove intent (N. Y.) 
870b. — of title by possession of certificate, blank assignment and power of attorney 
is insufficient to warrant transfer (N. Y.) 893c. Proof of transfer as a fact must be 
made (Miss.) 666c. Record of transfer cannot be proved by parol (Me.) 474b. Un- 
attested record on stock book is admissible (Me.) 476a. 

Illegal transfer invalid as to those bringing it about (Vt. ) 1350a. 

Intent is immaterial (Cal.) 83a; except to determine transferrer's liability (Mich.) 629b. 
Judicial sale. Bank purchasing its own stock at judicial sale, is in no worse position as 
regards liability for defaulted calls than any other purchasers (La.) 452a. Transferee 
is not liable for calls unsatisfied by sale (id.). 

Laches bars right to secure retransfer of stock for fraud (Ohio) 1133b. 

Legality of tax need not be shown where transfer of stock sold for taxes is made under 
valid proceedings to sell (Mass.) 537c. Acceptance is essential (Me.) 474b, (Tenn.) 
1303c. All debts must be paid, as condition precedent (Md.) 502b. 

Married woman participating in wrong transfer of stock by her husband is not subject 
to forfeiture (Md.) 499a. 

Pledge gives pledgee prior lien to judgment creditor of pledgor with notice (Ark.) 59d. 
Failure to make correct entry will not impose stockholder's liability on pledgee (Mich.) 
630a. Pledgee is entitled to transfer notwithstanding debt of pledgor to bank (Mo.) 
742c. Stockholder pledging his shares pledges also mortgage security given for them 
(Fla.) 133d. Title to new certificate issued under forged power of attorney passes 
to bona fide pledgee (Pa.) 1246d. 

Restrictions on stockholder's right to transfer cannot be made by by-law (Cal.) 69b, 
(111.) 233d, (Mo.) 709d, (N. Y.) 919b, (Tenn.) 1285b, but a restriction made by 
statute cannot be removed (N. Y.) 1063c. 

Sequestration proceedings are no guarantee of title on transfer under them (Ga.) 153c. 

Transferee of stock as security may be held as trustee for creditors as to balance remain- 
ing after satisfying debt (Mass.) 520d. 

Unauthorized transfer. Bank has power to protect stockholder from such transfer (N. C.) 
1123a, and it must exercise reasonable diligence (id.). Bank cannot deny validity 
of such transfer by its treasurer, and claim new certificates issued (Mass.) 573b. Con- 
tract will not lie by bank against holder of new certificate unlawfully transferred by 
bank's treasurer (Mass.) 573b. 

Unsubscribed stock 

is held in trust for members by bank (Pa.) 1188c. 

STOCKHOLDERS 

Action between stockholders and bank 

All stockholders must be made parties in suit against officers and directors (N. Y. ) 959b, 

and president of bank is not a necessary party (N. Y.) 991a. 
Negligence of directors in permitting the bank's president to waste bank funds, and to 

make untrue reports constitute one cause of action (N. Y.) 991a. 
No defect where it does not appear by the pleadings that there are other directors than 

those named (id.). 
Receiver cannot enforce stockholders' remedy for directors' deceit (N. C.) 1124c. 
Right to sue director lies even though stockholder has received illegal dividend (N. Y.) 

880c. 
Setoff of distributive share of assets not allowed in action by corporation for balance of 

subscription (N. C.) 1125b, or amount of stock in action by bank on a note (Md.) 

492c. 
Action against directors— see Directors, Liability 

Action between stockholder and corporation 

Stockholder is competent witness (Pa.) 1188b. — in an action on a note (N. Y.) 895c. 
— in suit against his bank (Md.) 493c. — in forgery prosecution on bills issued by his 
bank (Ohio) 1131b. —though stock transferred (Me.) 461b. 



182 BANKS AND BANKING 



STOCKHOLDERS— Continued 
Action between stockholder and corporation (continued) 
Incomfetent in action to liquidate bank affairs (Me.) 462b. 

ZPwaAt/zVj/ r««£iz'?rf by transfer of stock notwithstanding motive (Me.) 460c, (N. Y.) 869a,. 
(Pa.) 1171c. 

Action in behalf of corporation 

Corporation may be joined either as complainant or defendant (111.) 221c. 
Directors' refusal necessary to maintain the action (Colo.) 107a, (N. Y.) 991a. 
Limitations to suit in equity same as those in suit at law (Tenn.) 1311c. 
Stockholder may sue in equity in his own name on a cause of action existing in corpora- 
tion where directors' conduct is destructiYe of corporate interests (S. C.) 1273c. 
See also Action and Pleading. 

Action between stockholders 

Former members suing present members on bond to pay bank's debts, must retire notes^ 
for whose non-payment they sue (Ky.) 348e. 

CoiTiorate funds and property 

Billholders who are stockholders share equally with those who are not (Ga.) 154b. 

Collections on suspended notes need not be shared with one surrendering his stock on a 
reduction of capital (Ind.) 270a. 

Control not gifen to cashier because he owns four-fifths of stock (Kan.) 316a. 

In insolvency assets are trust fund for creditors (Neb.) 7*7 6b; but they cannot look to a 
fund upon which they did not rely in contracting the debt (Ga.) 146b. 

On reorganization, stockholders are entitled to joint proportion of assets (Conn.) 118b. 

Profits made on sale of state bonds belong to those who were stockholders at time of 
sale (La.) 381a. 

Purchase by bank of its own stock gives stockholders no preference (Ga.) 137d. 

Special stockholder shares equally with other stockholders (Conn.) 120a. 

Stockholders as between themselves, paying subscriptions in bank's notes will be allowed 
what they paid for the notes (Tenn. ) 1302a. ■ — under statute not entitled to dividends- 
with depositors (Cal.) 87b. 

Title va. bank, not stockholders (Wis.) 1422a. —to stockholders' funds held "by state treas- 
urer not in state (Wis.) 1408c. 

Transfer of assets to trustee requires authority of stockholder (Mich.) 597a; but stock- 
holder cannot complain when he takes his share of the proceeds with knowledge (111.) 
212c. 

Dealing with corporation 

Loan by bank to stockholder lawful and may be secured by mortgage (Ala.) 23a, and on 
failure of stockholder to renew note, a judgment and levy on mortgage securities may 
be made (Fla.) 133d. — need not be paid until due unless required to pay bank's debt 
(La.) 392b. 

Acqtdescence of stockholder in loan estops him from objecting (N. Y.) 1063c. 

Definition 

Different classes may be created by legislature (Conn.) 118b. 

Colored person, under charter allowing real estate owner to subscribe (La.) 382c. 
Purchaser of stock, having possession of certificate, though no transfer is made (Mich.) 619d> 
Transfer on books though no certificate issued, makes one a stockholder (Me.) 465a, 465b.. 
Giving and consenting to discount of note which is applied in part payment of stock 

makes one stockholder to that amount (Miss.) 672b. 
Married women, under statute (La.) 440a, (N. Y.) 923a. 
One holding stock collateral for loan (111.) 197b. 
Pledgee of stock standing in own name (Md.) 507d. 
Signer of certificate of incorporation, after filing (Wis.) 1427c. 
Subscribers {Conn.) llOd, e, to non-tranferable stock (Conn.) 118b. 

Estoppel 

to deny that directors are stockholders does not arise from fact of being directors 
(Tenn.) 1306b. 

Evidence 

Conversion of deposit into stock and receipt of dividends estops stockholder to ques- 
tion right of conversion (Md.) 496b. 
{Bank's books explained by oral testimony (Mich.) 61^c, but the fact that the name 
of persons, who, though not stockholders, were used as directors without their consent, 
appear on the books, is not evidence (Tenn.) 1306b. 

Investment of testator's funds in stock, by executor, does not make testator a stock- 
holder (N. Y.) 943d. 

Opinion of bank's officers as to ownership of stock, not admissible (Mich.) 633a. 

Inspection of corporate books 

enforceable by mandamus by stockholder (La.) 425a. —by stockholder's executrix (La.) 
455a. 



INDEX 183. 



STO CKHOLDERS— C ontinued 
Liability to assessment 

Not liable for assessment not due (Nev.) 809a; and under Act of 1849 ch. 226, only one 

assessment authorized (N. Y.) 931d. 
Collection not enjoined until amount legally due is tendered (Tex.) 1325a. 
One suing in deceit for being fraudulently induced to become a stockholder, cannot re- 
cover for the 'amount of an unpaid judgment on an assessment (N. C.) 1124c. 

Management of corporate affairs 

Directors may be given sole authority to create debts (Tex.) 1331a, and are accountable 
to corporation, not stockholders (Mass.) 536c. — not in privity with stockholders 

(N. J.) 835b. — unauthorized acts can only be ratified by bona fide stockholders. 

(HI.) 233d. 
Officers and stockholders are liable for fratid and mismana-jement (Tenn.) 1315a. 

Relation 

of stockholder to insolvent corporation, not that of surety (Pa.) ViVZa^. — to creditor,, 
same as bank as to limitation (111.) 215a. 

Bights 

Can hold cashier of illegal banking company for defalcation (Va.) 1369b. 

Entitled to proportion of increase of stock (Mass.) 515d. • 

May be stockholder in another corporation though he owns all stock in both corpora- 
tions (Tenn.) 1309b. 

Two-thirds may place bank in liquidation (Kan.) 322e. Right to vote or transfer stock 
may be denied by legislature (Conn.) 118b. 

Subrogated to creditors' rights on paying bank's debts (Ga.) 161d. 

May petition for receiver on bank's insolvency (la.) 299b. 

Rights of colored persons who are stockholders at the time unimpaired by amendment 
forbidding such persons to become stockholders (La.) 382c. 

Cannot be a receiver (Me.) 474a, nor obtain appointment of receiver on the ground 
that valid voluntary liquidation prejudices his interests (Kan.) 322e. 

Estopped to deny corporate existence (D. C.) 131c. 

Cannot attest bond given to his bank (Mass.) 530c. 

State as stockholder occupies same position as any stockholder (La.) 381a, (S. C.) 1264b;. 
and does not give corporabion any advantage as to its creditors (S. C.) 1264d, nor 
does it "lose its statutory priority of payment (Ga.) 146b. 

See also Derectors 

Rights as creditors 

Not entitled to dividend until subscription paid and security surrendered (Nev.) 809b> 
—to assets until creditors are fully paid (N. Y.) 929a, 936a, 936b, (S. C.) 1269a. —to 
distribution of surplus until their assessment for debt is paid (N. C.) il25b, (S. C.) 
1269a. —to compete with other creditors in insolvent banks assets (Pa.) 1212a, (Tenn.) 
1303c; contra (Ga.) 160a. 

STOCKHOJLDEK'S L,IABIL,ITY 

Action to enforce 

Liability may be enforced in equity (Me.) 491b, (Mass.) 529b, (Mich.) 598c, (Neb.) 
798b, (S. C.) 1272b, (Vt.) 1366a, (Wyo.) 1431d. —at law (111.) 208b. —iy creditor's- 
bill, when bank's debts cannot be paid otherwise (Wis.) 1424a; contra (Mich.) 598c. 
—by judicial decree (Pa.) 1212a. — by court of any state if action is by receiver 
(N. Y.) 1031d. 

Liability cannot be enforced in implied assumpsit (Mass.) 520b. 

Court may determ,ine necessity of action in ex parte application (Mich.) 629b. — extent 
of fund necessary to discharge liability (la.) 304a. 

Court must determine amount of claims, amount due from each stockholder and amount 
pro rata to satisfy suit (Neb.) 798b. 

Referee properly determines who are liable as stockholders (N. Y.) 915a. 

Liability cannot be enforced until all statutory requirements have been fulfilled (Me.) 
477c, (N. Y.) 923a. — assets and claims are judicially ascertained (Me.) 477c, (Neb.) 
799a, (Wyo.) 1431d. — execution has been returned nulla bona (Neb.) 791e, (Tenn.) 
1285c; contra (Minn.) 649a. 

Liability can be enforced without demand (Nev.) 809d, for balance due (Mo.) 737b. — re- 
questing receiver to sue (R. I.) 1249b. —inquiry into equities between stockholder 
and third party (la.) 287a. —receiver's liquidation of demands (N. Y.) 925a. —re- 
sorting to any sum beyond amount due on stock, if that is greater than debts found 
by the receiver (Ind.) 255d. —valuation hy MnAex sheriff (Kan.) 331b. —suit against 
bank if it is dissolved and an injunction has issued (N. Y.) 1078c. 

Remedy to enforce liability is several (Kan.) 339c. 

Necessary parties are all those having an interest (Wis.) 1426c. 

Necessary parties plaintiff are as,&i^e&,t\^o^^ assignor is stockholder (Cal.) 85c. —bill- 
holders (Mass.) 534d. —a// creditors (Neb.) 798b, 799a, 800c. 



184 BANKS AND BANKING 



STOCKHOLDER'S LIABILITY— Continued 
Action to enforce (continued) 

Necessary parties defendant are bank (Neb.) 798b. —one stockholder (Conn.) 118a. 
— all stockholders who can be made parties (N. Y.) 1084a. 

Creditor cannot intervene in action by receiver (Neb.) 802d. 

Right of action survives death of stockholder (Ark.) 61b, (Minn.) 656a, (N. Y.) 929e, 
(Wis.) 1423c. — by receiver continues after sale of claim by federal •court (Neb.) 805a. 
— should be founded on articles of association (Ind.) 255d. 

Right of action is not assignable after charter expires (Mass.) ^2Qsl. — cannot be en- 
joined by receiver if creditor is plaintiff (Kan.) 339a. 

Defense is given by a release (Pa.) 1222c. 

Defense is not given fr)/ action against bank (Cal. ) 85c. —failure to pay in capital stock 
(Me.) 491b. —fraud of bank after creditors' rights have intervened (Mich.) 619d, 
or after receiving benefits (Mich.) 629b. — issue of new stock, and holder is estopped 
to deny its validity as to creditors relying thereon (Minn.) 657c. —prior proceedings 
to terminate bank (N. Y.) 929e. —purchase of stock when bank was insolvent, unless 
pleaded within a year (Minn.) 652c. — sale of stock within six months of insolvency 
(Ga.) 141d. —transfer not according to by-laws (Me.) 480d. — ultra vires act, 
where plaintiff has fully performed (Mo.) 755b. — violation of law (Ohio) 1140d. 

■Setoff is allowed on payment of judgment (Ga.) 156b. — where stockholder is a creditor 
(Kan.) 336a; contra, except for pro rata share with all creditors (N. Y.) 915a. — on 
purchase of claims for amount actually paid (111.) 205d. —for dividends due but 
uncollected by billholders (Mass.) 535a. — fo transferrer for dividends (Minn.) 650c. 

•Setoff is not allowed merely because of ownership of stock (Miss.) 666c. — if bank has 
no lien on stock (Pa.) 1216b. — ?/■ stock has been sold by sheriff (La.) 429c. — on deb 
due from bank (Ind.) 255a, (N. Y.) 1087a. —where stock is not fully paid (N. C.) 
1125b. — as to general indebtedness, when stockholder is a creditor (Nev.) 809b. 

■Statute of Limitations is a defense after two years (N. Y.) 1078c, as to administrator 
(Mo.) 737b. — three years by creditor in suit on deposit (Cal.) 85d, or against. ad- 
ministrator (R. I.) 1249d. -four years (Ohio) 1140b. — six years as to bank iDills 
(Ga.) 148b, (Mass.) 533b, (Minn.) 646d. —twenty years (Ga.) 143c. —it has run 
against bank (Wis.) 1428c. 

Statute of Limitations is not a defense if stockholder caused delay (Conn.) 118a. 
— though two years have passed (S. C.) 1272b. 

Statute of Lifnitations runs from bank's refusal to pay (N. C.) 1115c. — determination 
of deficiency (N. Y.) 1079d. — notice of charter's expiration (Me.) 481c. , 

Statute of Limitations unaffected by charter provision continuing liability (111.) 198d. 

Complaint or declaration must allege that stockholders were such when debt accrued 
(Minn.) 647b. — is sufficient if it states amount due has been ascertained and bank's 
property exhausted (Neb.) 798b; or that defendants were stockholders when bills is- 
sued, without alleging they were such when suit was commenced ( Ohio ) 1142b ; or 
facts justifying creditor's action (Minn.) 655a. 

Complaint or declaration need not allege bank's insolvency (N. Y.) 916b. — consideration 
for notes and time of assignment (Mich.) 598b. — law under which incorporated, or 
when defendants became stockholders (N. Y.) 1073b. — decree in suit to which pleader 
was not party (111.) 216c. 

Answer or plea may be made by each stockholder separately (Me.) 474a. — may be 
amended as to amount allowed in District Court (Kan.) 331b; or to show payment 
(Mass.) 534d. — inust allege discharge of liability (Ga.) 149d. 

Evidence of amount paid by other stockholders is not evidence in estimating stockholder's 
liability (Ga.) 148b. — in form of comptroller's certificate is admissible (Neb.) 801a, 
and is conclusive as to regularity of proceedings (D. C.) 131c. — that creditor recog- 
nized a fraudulently incorporated company, does not affect creditor suing (Mich.) 
598c. — of discharge from liability must be given by stockholder (Ga.) 149d. — of 
incorporation of national bank cannot be given (Neb.) 801a. 
Jury cannot be demanded by stockholder (N. Y.) 915a. — in prosecution for embezzle- 
ment is proper, though stockholders and their relatives serve thereon (Mass.) 594b. ■ 
Judgment against bank binds stockholders (Ga.) 156e; contra, as to unpaid' stock not 
due (Mo.) 717b. — against bank and stockholders binds stockholders (Ind.) 250a. 
—perpetually enjoining bank, as insolvent binds stockholders (Me.) 480d. — is prima 
facie evidence of bank's indebtedness (Wis.) 1404b. — against stockholder cannot be 
questioned by bank (Tenn.) 1285b. —for unpaid stock not due on default of cor- 
porate assets, supports execution against stockholders (Mo.) 717b. 

Notice of judgment to bank is notice to stockholder (Ga.) 156c. 

Execution will issue against property conveyed by stockholder without consideration 
(Mich.) 632c. —may issue on husband's interest in property owned by husband and 
wife (Mich.) 632c. — returned nulla bona cannot be contested (Kan.) 337e. 

Writ of error may be sued out by stockholder whose property is liable, though he was 
not a party to suit (Me.) 468b. 

Arises 

Liability arises on assigning for creditors when liabilities exceed assets (Wis.) 1424b. 
— ceasing to do business (Mo.) 719c, for more than one year (Kan.) 333d. — expira- 
tion of charter (Mass.) 534d. —deficiency oi assets (N. Y.) 1088c, (Wis.) 1411c, 1426b. 



INDEX 185 



STOCKHOLDER'S LIABILITY— Continued 
Arises (continued) 

— demand for payment of bank bills (Mass.) 516c. — return of execution nulla bona 
(Mo.) 737b. —failure to pay debt under charter (Mo.) 719c. —obtaining perpetual 
injunction (Me.) 480d. —insolvency (la.) 304a, (Minn.) 661a, (N. Y.) 1088c, (Ohio) 
1161b. — foreign yaA^vaexvt to enforce liability (Mo.) 756d. —failure to give notice of 
transfer (Ga.) 147c; contra, unless all shareholders are joined (S; C.) 1267b. 
Liability does not ams for immaterial defect in incorporating (Neb.) 781b, (Ohio) 1141b. 
— where cause of action has expired (Wis.) 1428c. — on bank's closing with intention 
to resume (Mo.) 726e. — on issues of bank intentionally organized without regard tO' 
statute (Ind.) 252c. —on making gift without knowledge of bank's insolvency (Mich.) 
629b. — where creditor did not rely on stockholder's act (Ga. ) 165b. 

Charter 

making stockholder's property liable creates no personal liability (N. Y.) 948b, 954c. 
may make stockholders individually liable (R. I.) 1249b. 

making judgment against bank binding on stockholders, necessitates their defending 
suit against bank (Ga.) 156b. 

Constitutional and Statutory 

Constitutional liability needs no supplementary legislation to make it effective (Neb.) 

791e. — not violated by limiting time of action (Cal.) 91c. 
Statutory liability may be changed (Cal.) 82b. —extended (N. Y.) 1078c, by act sub- 
sequent to charter (N. Y.) 921b. 
Statute for ratable apportionment of claim against bank is unconstitutional (111.) 217a, 
Particular Acts. 

Illinois, Act of Feb. 14, 1861, 189d. 

Maine, Stat, of 1831, ch. 519, sec. 28, 464a; Act of 1853, ch. 233, 463a. 

Massachusetts, R. S. ch. 36, sees. 30, 31, 533b; Stat, of 1860, ch. 167, 545b. 

Minnesota, Law of 1895, ch. 145, 655b. 

New York, Constitution of 1846, art. 8, sec. 7, 923a; Laws of 1849, ch. 266, 916a,. 
921b, 923a; Laws of 1892, ch. 689, 1060d, 1078c, 1100a. 

Pennsylvania, Law of April 16, 1850, (P. L. 477) 1226c. 

South Carolina, sec. 19 Stat. 212, 1272b. 

Tennessee, General Banking Act of 1859-1860, 1303c; Act of 1832, 1285b. 

Enforcement 

Liability may be enforced by assignee of bank (Pa.) 1207d; contra, (Colo.) 106a, (Ind.)' 
276b. —attorney-general (Minn.) 653b. —billholder (Ga.) 143c, (Mass.) 534d, ■535a,. 
before or after dissolution (Ga.) 141d. —creditor (Colo.) 106a, (111.) 215a, (Mass.) 
529b, (Minn.) 653b, (Neb.) 791e, (Nev.) 809b, (N. Y.) 916b, (Wis.) 1404b, 1424b,. 
1428c; contra, if he has assigned his claim (N. Y.) 1080a, and if all creditors are not 
joined (N. C.) 1110a. —depositors (Mo.) 719c, 756d, (N. Y.) 1078c. —holders of 
certificates of deposit (N. Y.) 1078c; drafts (N. Y.) 1078c; notes (Ala.) 13e, issued 
before necessary amount of stock is paid (Ga.) 150b. —receiver {Covm..) 122b, (Minn.) 
649a, 655a, 655b, (Neb.) 791e, 799a, (Wash.) 1385b; contra (Minn.) 650a, (N. Y.) 
1080a. —stockholder as creditor (Wis.) 1425c; contra, if he has transferred stock 
(Ohio) 1163d. 

Liability not enforceable by one creditor against one stockholder (Minn.) 635b. 

Liability may be enforced against assignee of original stockholder (Colo.) 107c, (Tenn.)' 
1303c. —assignor, where assignee cannot pay (Tenn.) 1303c. —executors and ad- 
ministrators (N. Y.) 929e, though their accounts are settled (N. Y.) 1087b. —guar- 
antors (Cal.) 92a. —holders of stock by hypothecation (N. Y.) 915a, and by pledge 
(Mass.) 534d, (Minn.) 655d. —married Yioratn (Mo.) 727b, (N. Y.) 916a, (Pa.) 1226c. 
—purchasers for whom bank is carrying stock (N. Y.) 915a. -State, if a stockholder 
(Ga.) 146b. —state bank (S. C.) 1264d. —stockholders (Ala.) 13e, (Ga.) 150b, 
(111.) 217a, who were such at time of insolvency (Mich.) 629b, and after remedy against 
bank is exhausted (Neb.) 794c, (Pa.) 1207d, 1212a, (Wash.) 1384b, (Wyo.) 1431d, con- 
tra (la.) 302b. — those stockholders over whom court has jurisdiction (la.) 302b. 
— transferrer (Minn.) 650c; contra, for debts since paid (id.). — transferee primarily 
(id.) ; contra, if transfer was without his knowledge or consent (Tenn.) 1303c. 

Liability cannot be enforced against pledgee on failure of bank officer to make correct 
entry of transfer (Mich.) 630a. 

Enforcement of liability is governed by law of place of bank's location (Pa.) 1207d. 
—incorporation (Wis.) 1426c. —stockholder' s residence (Ark.) 61b, (Mass.) 592b, 595b, 
(N. Y.) 1083c, where remedy is same (N. Y.) 1079d, or where it is charter liability 
(Mo.) 719c; contra, if stockholder is non-resident (N. Y.) 948b. 

Extent 

Liability extends /o amount of stock (Ga.) 143c, 144e, 166b, (Me.) 474a, (N. Y.) 1085b. 
—proportionate amount paid in (La.) 412d. —amount of stock subscribed (Pa.) 
1212a, or stated as subscribed (Ga.) 166b, and unpaid (Neb.) 781b. —double value 
of stock (Conn.) 118a, (Ga.) 173a, (Pa.) 1226c, if it is not an investment company 
(la.) 309b. —par value of stock (111.) 213c, (La.) 392b, (Me.) 491b, (Mass.) 534d, 



186 BANKS AND BANKING 



STOCKHOLDER'S LIABILITY— Continued 
Extent (continued) 

535a, though stock is but partly paid up (Ga.) 143a. —stock in bank (Ind.) 254a. 
—proportion of bank's debt (Colo.) 102d, (111.) 197b, if within statutory limit (111.) 
208b, (Minn.) 650c. —debts due prior to subscription (N. Y.) 1366a. -debts due 
at time of transfer (Ga.) 148a, (Minn.) 646d, (N. Y.) 946a, (Wash.) 1388b. —com- 
tnunity property (Wash.) 1389a. —bills in circulation (S. C.) 1261b, in proportion 
as whole capital stock is to outstanding circulation (Ga.) 148a. —unauthorized issue 
of bills (Ohio) 1140b. —stockholder'' s deposit (Ohio) 1161b. —subscription note 
(Miss.) 693b. —balance, deducting debts in ratio of stock to that of all solvent holders, 
past and present, to amount of judgment (Minn.) 650c. — interest (Colo.) 106a, 
(Mass.), 535a, (N. Y.) 1079d, from commencement of suit (Mo.) 756d; contra (Mass.) 
534d, if there was no demand (Ga.) 143a. — amount of bank's assets, if he is sole 
stockholder (La.) 416b. 
Liability does not extend to post-notes (Mass.) 534d. —to penalty for usury (Mass.) 
535a. — unpaid subscription independent of statute (Pa.) 1226c; contra (Nev.) 809b. 
— beyond assets received, in case of stockholder's heirs or representatives (La.) 450c, 
(Wis.) 1423c. 

Nature 

Liability « joint and several (Ohio) 1146b. —several (Mass.) 534d, (Wyo.) 1431d. —pri- 
mary (Cal.) 69c, (Ga.) 147b, (111.) 215a, (Wis.) 1424b; contra, under special law (111.) 
208b. —secondary (N. Y.) 1060d, on bill against bank representing stockholders 
(N. C.) 1109d. permanent (Wis.) 1400c. — equitable result of subscription (Ga.) 
142a, (Wis.) 1400c. —ex contractu (Minn.) 644c, (S. C.) 1267c. —direct to creditors 
(Mass.) 592b. —that of partners (111.) 208a, (Wis.) 1400c. —that of principals on 
money procured by trustee (N. C.) 1126c. —coeval with that of bank (111.) 208a. 

Liability is not bank asset (Ind.) 276b, (Minn.) 649a. —penal (111.) 211b. 

Payment 

Stockholder's payment should be applied to debts arising in banking business though 
bank conducts other business (Wash.) 1387c. 

Subrogation 

Stockholder paying his share of claim is not subrogated to plaintiff's rights (Cal.) 90b. 

Termination 

Liability is term,inated by statutory amendment, though not complied with (Ind.) 253b. 
— dissolution (Ga.) 150e. —^president's failure to record certificate of transfer to him 

(Tenn.) 1316a. —lapse of time (S. C.) 1267c. —legislative enactment (La.) 420b. 
—merger with another bank (S. C.) 1268a. —payment (Kan.) 335d, 336a, after issue, 
but before service of summons with notice (Kan.) 335d. ^payment by one of several, 
who are liable (Ga.) 173a. —paym,ent of debts (Ga.) 154c, or note given for dis- 
charge (Wis.) 1426b, or judgment (111.) 206d, (Kan.) 330a, (Neb.) 805a. —recovery 
by one creditor against one stockholder (Kan.) 330a. — release of directors (Ga.) 148b, 
without creditors agreeing thereto (Wis.) 1426b. — transfer of stock (Ga.) 150c, 

(N. Y.) 888c, from husband to wife when bank was prosperous (Mo.) 727b. 
Liability is not terminated by agreement among stockholders (Minn.) 661a. — change in 
name or business of bank (Cal.) 87b. —failure to record certificate of transfer (111.) 
204b. — stockholder being a feme covert (D. C.) 131c. — /rfl«5/^r by defaulter (Wis.) 
1410c. —transfer after dissolution (Me.) 474a, or assignment (S. C.) 1272b, or within 
six months of insolvency (Ga.) 141d. — transfer without notice accompanying it 

(Ga.) 173a. — defective organization as to bona fide creditors (111.) 197b. — loans to 
corporation with knowledge that subscriptions are not paid (Ga.) 177c. — statute after 
liability became fixed (Mich.) 612c. — suit unless brought within six mouths after 
transfer (Wis.) 1428c. 

SrBROGATIOlKr 

(See Surety) 

Bank paying interest on bonds is subrogated to purchaser's rights against obligors (La.) 

383b. 
Checkholder is subrogated pro tanto to rights of holder in collateral (111.) 241d. 
Guarantor is subrogated to rights of holder receiving payment (111.) 229a. 
Lnsolveut estate is subrogated to creditors' rights against prior parties on notes (Minn.) 

657b. 
Stockholder paying bank's debts is subrogated to creditor's rights (Ga.) 161d. 
Sureties paying State's claim against principal are subrogated to State's rights (Ark.) ^9c. 

SUCCESSIVE BAlilfKS 

(See Banks) 



INDEX 187 

SUMMARY PROCEEDIIVGS 

Certificates of title 

are necessary to give jurisdiction, but are not evidence (Ala.) 7a, 8a, 9b. 

must identify debt with reasonable certainty (Ala.) 9d. 

must be accompanied by proof of official character of maker (Ala.) 14c. 

are good at any time before judgment (Ala.) 14b. 

are not dispensed with by filing of declaration (Ala.) 4d. 

need not be under corporation seal (Ala.) 4b. 

'Construction 

Law allowing summary proceedings must be strictly construed (Ala.) la. 

Summary process will not lie on breach of contract by bank (Ala.) 8d; nor against 

debtor's administrator (Ala.) 20b; nor against representatives of deceased maker 

(Ala.) 13a. 

Judgment 

Record of judgment must aver defendant's indorsement (Ala.) 8b. 

Jurisdiction 

President's certificate is necessary to give jurisdiction (Ala.) 6a. 

Statute increasing scope of summary proceedings applies only to after-acquired notes 
(Ala.) 6b. 

Notice 

suffident, if given, not before suit brought, but before judgment entered (Ala.) lOd. — if 
under seal of president and directors, when required to be given by president (Ala.) 
14a. — zy there is reasonable certainty in description of debt (Ala.) 21a. — i/ given 
by acting president (Ala.) 9a, 17c. — although there is error as to date when note 
was acquired (Ala.) 15b; but error in date of maturity of note is a material variance 
(id.). 

Protest 

Notice of protest is sufficient if notary's name is printed and debt identified with reason- 
able certainty (Ala.) 16b. 

Summary process 

provided by Act of 1818, applies only to bank loans, not discounts (La.) 376a. 

by motion on bank note presented to a bank for specie payment, is a suit (Mo.) 694e. 

cannot be resorted to to defeat rights of liquidating bank (La.) 393d. 

allowed on note due bank under sec. 27, Act of 1837 (Ala.) 13b, 13c. 

Ko presumptions in (Ala.) 4a. 

SUPERIlJirTENDENT OF BANKIDTO 

(See Public Officers) 

SITKETY 
Actions 

against surety on cashier's bond should be in court of law (Ky.) 363b. 
Assumpsit lies on teller's bond (Mich.) 611c. 
• In action on cashier's bond, no administrator need be appointed, if cashier dies after suit 
brought (Del.) 126d. 
Sureties may be properly joined, though severally liable (Mass.) 544c. 

Eond 

Acceptance oi fia:^€x'^ bond inferred without proof from record (Md.) 494a; or from vote 
of acceptance and president's possession (Mass.) 522a; or if held and sued on by re- 
ceiver (N. Y.) 1006d. — of bank treasurer's bond may be without formal vote of 
trustees (Mass.) 591a, 530c. — o/bond is necessary to make it a contract (Me.) 469b. 

Alteration. Bank bringing suit against all sureties except one whose name is erased, 
admit their consent, and must show consent of defendants as well. (Pa.) 1174c. Bur- 
den is on obligee to show alteration of bond without his consent or with consent of all 
parties concerned (id.). 

Application of payment. Surety may not apply payment on account to deposit under 
bond (Minn.) 652b. Amount and application of payments on bond are questions for 
jury (Pa.) 1245c. 

National Bank cannot be held as surety on bond (111.) 245a, (Mich.) 615e. 

.State Bank cannot execute bonds in judicial proceedings (Neb.) 808a. — is not estopped 
by bond beyond its powers to execute (id. ) . — cannot recover, for its own use, on 
auditor's bond, who has converted bonds deposited with him, so long as it has cred- 
itors (Ind.) 251c. — holding mortgage to secure surety, cannot apply proceeds to its 
own use (Mass.) 577a. Notes of Bank of Tenn. issued during civil war are legal tender 
for sum due state by surety (Tenn.) 1306d. 

By-laws are no part of conditions of bond (N. J.) 824c. 

JBreach. Theft to confceal defalcation, prior to execution of cashier's bond, is a breach of 
condition of bond (Mass.) 518d. Allegation of money received and not accounted for, 



188 BANKS AND BANKING 



SURETY-Continued 
Bond (continued) 

states breach of teller's bond (Mass.) 523d. Bank may sue for each and every breach 
of clerk's bond (Ky.) 373b. 

Cancellation and Surrender. Cashier's bond may be canceled by president or directors- 
(Me.) 466a. Mistake, to set aside cancellation of cashier's bond, must be mutual (id.) . 
Fraud to avoid cancellation of bond, must relate to the accounts and be participated 
in by obligee (id.). Cashier cannot compel surrender of bond three years after ap- 
proval and auditing of his accounts (La.) 381d. Illegal cancellation of bond by diree- 
tors will not relieve from liability a director who was surety (La.) 379b. 

Concealment. Directors not bound to disclose facts concerning cashier's previous defi- 
ciency to proposed surety, unless they know of deficiency (Me.) 470c. 

Conditions need not strictly conform to act of incorporation, if not illegal (Ky.) 346c, 
(Me.) 469b; nor to form of statute (Mass.) 544c; nor to charter (N. C.) 1103e. Lim- 
iting time of employment does not limit liability of surety to that period (Mass.) 517c. 

Construction. "To save president and directors harmless" means to bank in corporate- 
capacity (La.) 437c. "Clerk" covers "teller" (Mass.) 571b. "Actuary" does not 
cover "bookkeeper" (N. Y.) 1004c. "So long as he acts as treasurer " is for indefinite 
time (Mass.) 564c. "Present and fiiture indebtedness" includes renewals of existing 
debts (la.) 306a. Cashier continuing duties is " in employment" (Pa.) 1228b. Book- 
keeper's bond to perform his and all other duties required of him covers default while 
acting as cashier (Ga. ) 137c. Bond conditioned for "accounting and paying over 
money" includes theft of funds after payment to bank (Pa.) 1209a. Terms "public 
moneys" and "county fiinds" are convertible (Kan.) 337b. Bond conditioned for pay- 
ment of public funds deposited by county treasurer is retrospective (Kan.) 336b. Mere 
verbal variance between charter and bond will not avoid latter (Del.) 126d, (N. C.) 
1103e. Complaint in action on bond may be in general terms (N. Y.) 1006d. Bond 
under Act of 1838 covers year only for which it was given (Me.) 463c. 

Creditor must exercise utmost good faith toward surety (la.) 306a. 

Definition. Perpetual bond covers service of official, irrespective of regular or successive- 
elections (N. Y. ) 1090b. "Surety" affixed to signature means surety for debtor (Vt. ) 
1362b. Surety's bond for depository bank is not the contract, but collateral to it 
(Minn.) 654c. 

Expiration. Liability on cashier's bond continues until his successor has qualified (Del.) 
129b. Sureties are not liable for defalcation after expiration of bond (Ark.) 57d.. 
Cashier's bond without limit as to term is not limited to one year, because director's 
term is so Umited (Kan.) 333c. Bond for limited appointment covers only period 
named (N. Y.) 1070a, (Pa.) 1228b, (Vt.) 1353c. Bond covers any default while in 
office (N. Y.) 1068a, 1070b. 

Interest is allowed on money appropriated from time of wrongful receipt in suit on bond 
(Ga.) 140a, (Md.) 512b. — rtins firom date of demand upon surety (Mass.) 548b. 

Judgment whether obtained by fraud and collusion, question for jury (Mich.) 615e. 

Lien. State has no lien for bank's indebtedness to it, on bonds deposited with comp- 
troller to secure circulation (Wis.) 1404d. 

Loaji Society. Secretary's bond to society covers only its funds (Cal.) 72d. 

Pleading. Non est factum throws burden of proof on plaintiflf", while escrow merely denies 
delivery and burden is on defendant (Md.) 494a. Plea of delivery of bond in escrow is 
bad (N. J.) 822c. Broad specifications are sufficient in averment of breach and dam- 
age (Va.) 1368e; also defective petition setting forth good cause of action (Mo.) 742a^ 
Burden of proving excuse in action on bond is on obligor (Mass.) 523d. Action on 
bond for state depository must show receipt of money after approval of bond (Minn.) 
654c. 

Ratification. None without knowledge of cashier's improper acts (N. J.) 822c. 

Recovery possible where money is paid by surety in ignorance of secret agreement impair- 
ing his rights (N. Y.) 911b. — wo/ possible on bond to private banking company (Pa.) 
1215d. — not possible on bond of agent of foreign banking corporation doing busi- 
ness contrary to law (Miss.) 686b. 

Satisfactio7i. 

Promissory note, taken in satisfaction bars action on bond (N. J.) 824c. 
Resignation of cashier and handing funds to committee is consideration for bank's 
acceptance in satisfaction (N. J.) 822c. 

Stockholders suing on bond must retire notes for payment of which they sue (Ky.) 348e. 

Validity. Bond written by principal including his name, acknowledged and oath signed^ 
need not be signed at end (Neb.) 740d. Bond approved by court is sufficient (la.) 
304c. Bond approved by two of three persons required is good, if third person is- 
present (Neb.) 795a. Clerk of court may approve his own bond (la.) 304c. Cashier's- 
bond unsealed, good, if consideration sufficient (Vt.) 1363b. Bond, good at commoo 
law, is not invalidated by subsequent act requiring cashiers to give bonds (Mo.) 730d. 
Bond of cashier of branch bank is good, where statutes are silent as to power to- es- 
tablish branch banks (N. C.) 1124b. Cashier's bond on which former director is 
surety, is good (Me.) 469b. 

Collateral 

Acceptance of collateral does not destroy availability of principal security (Me.) 460c. 



INDEX 189 



SURETY— Continued 
"Cosurety 

Surety paying debt, even if unenforceable, can recover proportion from cosurety (Me.) 
462d. On release of a cosurety, other is liable for only one-half the note (Ark.) 51a. 
Resignation of cosurety does not discharge surety, until lapse of reasonable time 
(N. Y.) 1006d. 

Defenses 

Good defense to surety : As to breach of bond, ratification by bank (N. J.) 822c. Failure 
of consideration (Cal.) 75c. Condition that other sureties were to sign a bond, if 
known to holder (la.) 306a. Error of cashier by mistake (N. J.) 824c, but see 822c. 

No defense to surety: Failure to examine officer's accounts (Ga.) 172d, (La.) 412c, 
(Mass.) 557a, (Mo.) 729d, (N.J.) 824c. As against prior breaches, continuing cashier 
in office after discovery of acts (N. J.) 822c. Delay in bringing suit (Mo.) 742a, 
(N. J.) 824c. Payment by bank of due bills made by teller (Pa.) 1196c. That prin- 
cipal's wrongdoing was evasive of statute (N. Y.) 1040d. Discontinuance of suit 
against conspirator, if surety not injured (Pa.) 1196c. 

Deposit of principal is not pleadable as payment or setoff (Ala.) 2b. 

Draft— see Drafts, Surety 

Estoppel 

Surety is estopped to deny that his principal was cashier (N. J.) 822c. — corporate ex- 
istence of bank (La.) 444c. — de facto cashier was such de jure (Me.) 730d. 

Surety is not estopped by silence (Pa.) 1176b. 

Bank may be estopped by published statements of its condition from proceeding against 
sureties (Ky.) 374b. 

Evidence 

Declarations of principal are evidence against surety (Mass.) 530c, 548b, (R. I.) 1252b, 

(S. C.) 1257c. 
President may testify in action on bond although contingently liable (Me.) 466a. 
Member of firm who did not sign bond is competent witness (La.) 384a. 
Inyuit on bond for converting commissions on sale of bonds, evidence of profit to agent 

must appear (Mo.) 759b. 
Published statements of bank's condition, as inducement to become surety, not admissible 

(Del.) 129d. 
Teller's books are evidence against his surety (S. C. ) 1257c. 
Authority in cashier to discharge sureties must be proven (Mo.) 747b. 

Indemnity 

Surety to be indemnified must prove that he was hable to pay bond (Mass.) 557a; but 

not if payment is assented to by one under contract to indemnify surety (id.). 
Mortgage by clerk to secure bank for stolen funds covers his own default and that of 
pothers permitted by him (N. Y.) 1072c. 
Surplus on indemnity bond should be returned to obligor (N. J.) 837a. 

Liability 

Sureties are liable not only for principal's acts done virtute officii, but also for those 
done colore officii (La.) 444c. —for fraudulent investment in illegitimate transactions 
(Ind.) 272a. —for money received by a cashier selling bonds for a bank (Mo.) 740b. 
—for improper discharge of duties of teller by cashier (Mo.) 736b, (Ga. ) 172c. —for 
bookkeeper's infideUty although connived at by other officers (Mo.) 729d. —for em- 
bezzlement by cashier or bookkeeper (Md.) 512b, (N. Y.) 921c. —for default of bank, 
if it was the de facto depository of county funds (Minn.) 648b, 649d. ^or default of 
cashier although capital of bank had been increased (Mo.) 730d; contra (Mass.) 544c. 
—for act of cashier in allowing overdrafts although sanctioned by directors (Mo.) 
712b. —for withholding bank Kinds by cashier (Mass.) 522c. —for misappropriation 
of stock by bank officer (N. Y.) 1040d. —for transfer of deposit by outgoing to new 
county treasurer, if bondsmen of insolvent bank (N. Y.) 1081b. —for general deposit 
of pubUc fonds prohibited by law from being used (Ala.) 33a. —for funds deposited 
before the bond was given (S. D.) 1278d. — although security taken is not in accord- 
ance with by-laws, where bank has discretionary power (Pa.) 1174b. — on demand, on 
bond to pay on demand money vsrongfuUy withdrawn from bank by third party, after 
expiration of time agreed upon (N. Y.) 1082c. — during corAh.rms.rvx. in office of cashier 
not elected at stated time (Mass.) 522a. —without demand or notice (Mass.) 544c, 
(Minn.) 654a. — before remedies at law are exhausted (Mo.) 742a. 

Sureties are not liable for issiie of illegal bills by cashier (Mass.) 522c. —for principal's 
personal debts (id.), —for cashier's misconduct as bank attorney (id.), —for defalca- 
tion subsequent to original charter (Ohio) 1132a. -^or default subsequent to 
execution of new bond (Me.) 463c. —for amount exceeding penalty (Pa.) 1245c. 
—for thefts unconnected with office (Va.) 1368e. —on a bond given to secure pay- 
ment of deposit to executor, for payment by bank of another's account to ex- 
ecutor (Mass.) 585c. -for note sold without their consent or ratification to any 
other than payee (Me.) 481b. — beyond note and interest, though given for Overdraft 
(Cal.) 93b. —for sale of note, where bank had no authority to sell (Mich.) 613d. 



190 BANKS AND BANKING 



SURETY— Continued 
Liability (continued) 

— when creditor has knowledge to put him on inquiry (la.) 306a. — on bond, silent as 
to time, where cashier was appointed for one year, on his reappointment at end of 
year (Mo.) 720d. —for non-performance of cashier, if ratified by directors (Ala.) 22b. 
—for clerk's failure to protest note, if any parties to note were insolvent (La.) 399c. 
—/or cashier's mistake (N.J.) 824c; contra (N. J.) 822c. — unless cashier himself was 
liable (Ky.) 363b. , 

Sureties warrant ability of oiEcer (Pa.) 1174c. 

Liability of surety and principal is of same duration (Pa.) 1176b. 

Sureties binding themselves each for a specific amount are regarded as if bound by inde- 
pendent obligations (La.) 444c. 

Where sureties are severally liable each is liable for full penalty (Mass) 548b, (Ohio) 
1149c ; but separate sureties on bonds of bookkeeper and teller are not liable in solido- 
for teller's default though connived at by bookkeeper (La.) 447b. 

Representatives of deceased surety are not concluded by judgment against hving sureties- 
(Ohio) 1132a. 

Measure of Damages 

Sureties are hable for compensatory damages only (Pa.) 1174c, 1176b. 

Negligence 

of public officials does not afiect sureties (Minn.) 660a. 

Bank owes only good faith to surety, not diligence in supervising accounts (Del.) 129b. 

Delay of two years in discovery of default is not necessarily laches (Ga.) 137c. 

Loss by negligence of losing party discharges surety (Cal.) 76b. 

Failure to sue for 9 months after note due is no bar to suit against sureties (Ark.) 44b.. 

Notice 

Knowledge of clerk of bank trustee is not knowledge of trustee (Ark.) 46a. —t?/" cashier's- 
defalcation by branch bank not imputable to main bank (Ky.) 348c. --(t/' facts to put 
a prudent man on inquiry charges creditor with notice of bond's illegality (la.) 306a.. 
—of bank's condition imputable to proposed surety (Ky. ) 374c. —of by-laws, extending 
time of oflace, not imputable to surety (Vt.) 1363b. —of cashier's frauds as soon as 
committed, not imputable to directors (Ky.) 574c. 

Purchaser of land from bank president must inquire whether he is surety on bank's bond! 
(Ga.) 163a. 

Question of opportunity to inform surety of defalcation is for jury (Me.) 470d. 

Written notice of demand to surety not necessary (Ga.) 140a. 

Married woman 

may be surety for her husband (La.) 412b. 

Payments 

Surety for receiver is not entitled to benefit of payments made him as trustee (N. Y.) 988c.. 

Powers 

Surety may compel bank to resort to funds of principal in its hands (la.) 301a. 
Surety for a company whose assets are being wasted, may have receiver appointed (Ohio) 
1158c. 

Priority 

Surety has no priority over other creditors except on notes held as collateral (la.) 294d.- 
Lien of state on land of surety prevails over title of surety's grantee without actual 
notice (Ga.) 163a. 

Promissory Notes — see Promissory Notes, Surety 

Release 

Sureties are released by any change of liability without consent of surety (Mich.) 611a. 
— appointment to a new office, duties of which interfere with old (Pa.) 1230b. — con- 
cealment of material matters by creditor (R. I.) 1252b. —default committed while 
acting in another capacity than that for which bond was given (Ky.) 367d, (Mo.) 
715d, (N. Y.) 995c; unless duties are along same line (Ind.) 272a, (Mich.) 611c, 
(Mo.) 722c. —deprivation of his immediate recourse (N. Y.) 858a. —expiration of 
bank's charter (Md.) 494a. — expiration oi corAxBJit for which bond was given (N. Y.) 
1085d. —extension of time without his consent (Ala.) 5a, (Ark.) 46e, (La.) 416a, 
(Me.) 472c, (N. Y.) 933d, (N. D.) 1129c. —forfeiture of bond as to principal (Pa.) 
1196c. —fraudulent concealment from surety of defalcation of cashier (Me.) 469b, 
470d; or teller (Mo.) 736b. — misrepresentations in published report of condition of 
bank (Ky.) 358a. — negligence of losing party causing loss (Cal.) 76b. _ -payments 
pro tanto, made by primary debtor (La.) 412a. —performance of condition of bond 
or satisfaction (N. C.) 1103e. —showing that debt was paid (N. H.) 814a. —state 
treasurer's indorsing and turning over certificates of deposit to his successor (Neb.) 
790d. 

Sureties are not released by assignment of some of cashier's duties to subordinates 
(Ky.) 363b. —bank custom of extending time on paper if they have notice (Me.) 462d.. 



INDEX 191 



SURETY— Continued 
Release (continued) 

— certificate of character given by bank to former clerk before discovery of default (La.) 
383a. — charging note to bearer's account and return of collateral by mistake (N. Y.) 
913c. — conveyance of property to bank by cashier prior to his embezzlement (Mass.) 
544c. —covenant not to sue (N. J.)' 836a. —death of surety (Pa.) 1233b. —default 
of cashier at time of bond (N. J.) 836a — delinquency of another set of officers (Md.) 
512b. —failure to arrest a defaulting cashier (La.) 412c. —failure to have cashier 
sworn before entering on his duties (N. J.) 822c. —fraud in procuring cosureties 
(Ga.) 163b, (Me») 470c. —increase in business of the bank (N. J.) 824c. —insol- 
vency of bank when they are sureties of bank as state depository ( Ga. ) 163b. — mere 
delay in prosecution of principal debtor (Me.) 458d, (Md.) 514b, (Mass.) 527b, (R. L) 
1252b. — mere verbal variance between requirement of charter and condition of bond 
(N. C.) 1103e. —neglect of bank officers to ascertain default (Minn.) 649d, (N. J.) 
836a, (Pa.) 1196c. — new surety bond, unless in accord and satisfaction (Ky.) 346b. 
— «o notice of non-payment (Mass.) 527b. —/rzWi^a/ paying out money from another 
teller's drawer (Mass.) 522b. —prior errors of cashier, not affecting morals or fidelity, 
though known by directors (N. Y.) 1006d. —statements of cashier as to teller's reli- 
ability and character (Del.) 129d. — temporary loan to make defaulter's account good 
(Tex.) 1338d. 

Statute of Limitations 

is prevented from running by teller's concealment of defalcation (Del.) 129d. 
does not run against action by surety to enforce contribution from principal until it 
would run against the judgment paid by him (Mont.) 770a. 

Subrogation (see Subrogation) 

Surety paying debt is subrogated to all rights of creditor (Mo.) 744c, (N. J.) 829a, 

(S. D.) 1282b. — to rights of state against bank applying public moneys to state 

officer's individual debt (Ark.) 59c, 61c, (Tex.) 1341a. 
Is not subrogated to right to stock, not held by bank as collateral (Mass.) 568c. — until 

full payment is made (Conn.) 114a. 
Security belonging to surety in subrogation cannot be impaired by bank (N. Y.) 911b. 
Sureties by subrogation to bank's prior lien on stock, take precedence of assignee (Pa.) 

1194d. 

Surety Company 

may be authorized by legislature to execute receivers' bonds (Wis.) 1422c; and may re- 
ceive payment for signing them (id.). 
Director, forbidden to be surety on cashier's bond, cannot secure sureties (Me.) 474d. 

Usury 

Liability of principal and surety on usurious note is same as to usury (Ind.) 260b. 

SITBJ»L,UIS 

Discounted notes may be included in surplus profit (N. Y.) 1066a. 

Money paid but not earned, not surplus profit within statute (Cal.) 71b. 

National Bank cannot retain, as surplus, receipts for stock subsequently retired (N. Y.) 

980c. 
Tax on bank surplus is not a tax on capital (Wis.) 1422a. 



Action for taxes' 



TAX ASSESSORS 
(See Public Officers) 

TAXATIOJT 



At law not proper where statute makes adequate provision for its recovery (Kan.) 321b. 
Good defense that stock was transferred before tax attached (Mich.) 625b. —that it was 
bank stock assessed or that all taxes against bank were .paid (Mo.) 764b. 

Application 

of taxes collected to pay bond issue of $250,000 cannot be made to issue of $300,000 
(Ky.) 364a. 

Assessment 

based on actual value of shares as found by deducting assessed value of realty from 
total value of assets (N. Y.) 1096a. —banker's deposits and bills payable deducted from 
money and credits (la.) 292b. 

conclusive in trespass de bonis (N. Y.) 864b. 

Assessors are presumed to have complied with law in making deductions from taxable 
values of property (N. Y.) 960c. —way make return of bank's property in original 



192 BANKS AND BANKING 



TAXATION— Continued 
Assessment (continued) 

book instead of copy, or in two books instead of one (Mo.) 743b. — may place on 

tax list stock of shareholders, if omitted by bank (N. C.) lllSa. 
Cancellation of assessment, by board of supervisors not allowable without affidavit of 

auditor, whose duty it is to enter taxes on assessment book (Cal.) 65a. 
Correction by increasing value of stock permissible if necessary to secure legal result 

(Cal.) 76d, (N. Y.) 1025d, but if not corrected when possible admitted to be cor- 
rect (Mich.) 610d, (Mo.) 743b. 
County is bound for amount of tax lost by omission of its officers to make return of 

bank's property (Pa.) 1248e. 
Deductions of former years improperly made in computing values, cannot be placed as 

omissions on subsequent lists (Ohio) 1163c. —o/" shareholders' indebtedness necessary 

ill assessing shares in state banks (Ala.) 32d. 
Errors of taxing officers not actionable unless malicious (N. Y.) 1025d, unless they were 

without- jurisdiction (N. Y.) 983b. 
Increase by board of equalization may be ratified by bank (Wash.) 1389b. 
"Inhabitant" in assessment list includes corporation (N. Y.) 864b. 
"Loans on stocks and bonds" is not void for uncertainty (Cal.) 97b. 
JSfo estoppel against bank arises from payment of unlawful assessment for several years 

(la.) 298a, nor from cashier's statement of bank's taxable assets (la.) 285a, but bank 

is bound until corrected by board of equalization (Kan.) 322b. 
No jurisdiction to inquire whether or not petitioner had property that had escaped, in 

action to review (Cal.) 76d. 
Omission of property by owner may be rectified by assessor (Cal.) 89b. 
Place where bank's real estate is situated is proper place of assessment (Ind.) 266c, and 

act stating this principle is constitutional (111.) 195b. 
Recoverable, if void, in action of assumpsit (R. I.) 1250d. 
Remedy, if improper, is application to auditor general for abatement (Pa.) 1201d, — if 

illegal, is certiorari, not injunction (Ala.) 29d. 
.Seizure of bank's property not permissible on assessment against holder of stock (la.) 

286c. 
Tfljir not recoverable by state if not regularly assessed (Miss.) 691a. — duplicate is county 

treasurer's authority for holding bank property for taxes (Ind.) 253d. 
Uniform rates at true value necessary in assessing property (N. J.) 834c, but bank shares 

may be assessed at greater rate than other capital (111.) 193d; contra (Cal.) 68b, 

(S. D.) 1280e, 1281a. 
Valid, although part is invalid (Tex.) 1325a. —pending probate, to one "named as 

executor" (Mass.) 537c. — although hearing did not precede assessment of bank's 

property (Mo.) 750a. —;/b/' omitted years (La.) isiAsCi. — on shares of bank including 

railroad stock as part of its capital, whether assets of bank are taxable or non-tax- 
able (N. Y.) 1094d. 

3aaks 

making election of alternative, cannot complain of unequal operation of tax resulting 
(Pa.) 1235d. 

liable for tax constitutionally (Cal.) 73b. — on deposits (Haw.) 179c. — where situated 
(la.) 284a, (N. Y.) 931c, 933e, and not elsewhere (N. J.) 826b. —o/ stockholders if they 
have their money or property (la.) 287b; contra (N. Y.) 941a. — if not in hands of 
receiver, although restrained from exercising some powers, under statute (Mass.) 562b. 
— by statute passed subsequent to their charter (Mass.) 518c. —under special name 
adopted, if individual banker doing business under General Banking Law (N. Y.) 
912c. — under special name of bank, upon property used in business (id.). 

not liable for tax on stock held as collateral (Mass.) 537a. — as brokers where they 
actually purchase stocks and bonds and afterwards sell to customers (Tenn.) 1308c. 
— on stock retired and canceled when organized under General Banking Law of 1838 
(N. Y.) 938c. — on capital actually invested in U. S. bonds, but this must affirm- 
atively appear to abate assessment (La.) 439c, (N. Y.) 938d. —z/" insolvent, except on 
court order (Wis.) 1422c. — unless in life on day when it is payable (N. Y.) 914a. 

not entitled to distribution of two-mill tax on bonds deposited with auditor, under 
banking law (111.) 182d. 

not agent of stockholders to sue out certiorari to review taxation on their shares (N. J.) 
827c. . . .* . 

Charter fixing special tax in lieu of all others is an inviolable contract (Ky.) 350c. — may 
be altered by State if right is reserved, and tax may then be levied (Pa.) 1191c, but 
intent of subsequent legislation to change rate must be clear (Tenn.) 1308c. —forfeited 
for non-payment of tax, will not preclude recovery by State (Pa.) 1176c. 

National and State need not be taxed on same plan (la.) 299c. 

Notes of Bank of Tenn. lawfully issued during civil war are receivable for state taxes 
(Tenn.) 1304a, 1306a. 

3onds 

of city held by savings banks are taxable under act of 1889 (Pa.) 1230a. 

of State are taxable under law of 1852 providing for taxation of all property upon which 



INDEX 193 

TAXATION— Continued 
Bonds (continued) 

banks are entitled to interest (Ohio) 1145d, unless specially exempted (id.). 
of U. S. forming capital of private banker cannot be taxed by a county (Mo.) 725c. 

—form no part of surplus for purposes of taxation (N. Y.) 1074d. 
taxable by constitution (Cal.) 97b. 
Interest on bonds of a bank in hands of state auditor is not appropriated absolutely 

for payment of taxes against bank owning them (Ind.) 253d. ^ j 

Capital ] 

tax is franchise tax and not equivalent to tax on shares of stockholders (Wis.) 1406a. 

— not satisfied by payment of ten per cent of unredeemed pledges (La.) 436c. 
taxable unless specifically exempt (La.) 436a, and free banlang law does not have such 

effect (La.) 432b. 
not taxable if composed of exempt securities (111.) 194b, (la.) 289d. — under an act to 

"levy a tax on taxable property in the town" (Ky.) 362a. — under a city ordinance 

to "levy a tax on all property real and personal within its limits" (Tex.) 1322b. 

— under act taxing inhabitants of county (Ga.) 151b, but each stockholder may be 

taxed at his residence (id. ) . — under national bank act authorizing tax oh shares of 

bank only (Mo.) 720c. 
"Average capital invested" in private bank includes all money used in business (Kan.) 

314c. 
Banking building is part of capital of bank represented by its shares of stock (Pa.) 

1213b. 
Deposits to secure stock to purchasers taxable as surplus capital (la.) 310c. 
Surplus used as capital taxable (la.) 300b. 

Collateral 

Value of bonds deposited with state auditor to secure bills is taxable as capital paid in 
(111.) 184c. 

Stock held by a bank as collateral is not taxable as capital (Me.) 469c, but under stat- 
ute (id. ) . » 

Credits 

if solvent, taxable, though proceeds of a taxed business (N. C.) 1109a. 

Debts 

if solvent, liable to taxation (Cal.) 64d, 65a. 

Situs, for purpose of taxation, is domicile of creditor (Va.) 1377c. 

Deductions 

allowable, of debts to non-resident corporation (N. J.) 826b. — q/ debts of stockholders, 
from taxable value of their stockholdings (la.) 296b, (N. H.) 817e. — of note, proceeds 
of which are invested in U. S. bonds held as security, from taxable property of maker 
(N. Y.) 1002b. — o/" amount due depositors, from bank's property (N. Y.) 1071d. 

not allowable of amount invested in non-taxable bonds, from capital stock, by bank 
to obtain basis of privilege tax (Miss.) 692a. —of debts or investments in exempt 
securities by banks taxable on valuation equal to paid in or secured capital (N. Y.) 
929d. 

by bank's president, accepted by county assessor, does not prevent city from taxing at 
full value (Miss.) 692b. 

Definitions 

Taxable property is that liable to be taxed at the time assessment is made (S. C.) 1258f, 

Deposits 

In bank taxable (Neb.) 774b, (Nev.) 808c, (N. C.) 1109b, (Ohio) 1143a. —without de- 
duction for debts (Mass.) 574b. — although money of bank is invested in U. S. bonds, 
exempt from taxation (Conn.) 117d. —although bank also taxed (N. Y.) 1076c. —but. 
not if invested in ground rents on property taxed to leasehold owner (Md.) 511b. 
—to holder of legal title only (N. H.) 816c. 

in trust company by non-resident embracing personal and trust money, subject to trans- 
fer tax (N. Y.) 1068d. 

Certificate of deposit held by receiver of bank is taxable (Cal.) 62b. 

Specie kept for sale and balances on interest are taxable (Nev.) 808c, (Ohio) 1145a. 

Treasury notes held on deposit in regular course of business, not taxable, though held 
for this purpose (Tex.) 1328c. 

Dividend 

on stock held by a bank is not taxable under Act of 1831 until divided (Ohio) 1135d'. 
—of Bank of U. S. is taxable (S. C.) 1258e. 

includes application of profits to the payment of bank shares and is taxable (Ohio) 1136d'. 

when declared, taxable, though bank is insolvent (Pa.) 1192c, and creditor cannot at- 
tack tax collaterally (id.). — out of surplus, whether to avoid tax, is question of fact 
(Kan.) 320d. 



194 BANKS AND BANKING 



TAXATION— Continued 
Double 

What constitutes: tax on land and also on mortgages thereon (Cal.) 64d. — on shares 
of a stockholder and also on all property giving value to the shares (Tex.) 1325b. 
— on deposits in one state and depositor in another (N. H.) 816c. — on real estate 
of bank and on shares of stock without deduction for value of real estate (Ind.) 271b, 
(la.) 296b. 

IVhai does not constitute: tax on property of bank and shares of stock (111.) 199d. — on 
shares of stockholders and on real estate in which surplus is invested (Wis.) 14f22a. 

Legislative intention to impose double taxation not inferred without clear language 
(R. I.) 1250d. 

Duress 

Payment of tax to avoid threatened levy payment under duress (111.) 199a. 

Estoppel 

Defendant omitting to review tax proceedings cannot thereafter question regularity of 
tax (N. Y.) 1021a. —failing to ask for reduction of tax waives his right, although 
a non-resident (N. Y.) 1082a. 

Evidence 

Tax bill is merely prima facie evidence in suit to recover taxes (Mo.) 764b. — admissi- 
ble, although descriptive words of location of bank are lacking (id.). 

In suit to recover amount of check paid tax collector and held by him until bank failed 
and when plaiutij6f had to pay taxes again, evidence must show all taxes returned as 
delinquent (Mo.) 710a. 

Newspaper reports and private sales not admissible as evidence of taxable value of bank 
shares (Mass.) 594d. 

Value of shares over a length of time admissible in determining value for taxation (id.) . 

Exemption 

What are exempt. U. S. Bonds from state taxation (Ind.) 257d, (N. Y.) 935b, 938d. 
Surplus of foreign savings banks (N. Y.) 1074c. Insolvent bank, under law making 
bank liatle for tax only as agent of stockholders (la.) 298a. Capital of bank consist- 
ing of state funds, from municipal taxation (Tenu.) 1288c. Capital of bank, under 
statute fixing rate of taxation on capital stock in lieu of other taxes (Del.) 129a. 
Free banks organized under act of 1853, from Uceuse tax (La.) 442d. Real property 
actually used for banking purposes, under charter provision making bank liable only 
for capital tax (Tenn.) 1299a, 1305a. Real property of bank under charter exempting 
corporation and stock from taxation (S. C.) 1258f. Real estate bought with assets 
of bank, but it is a factor in determining amount of privilege tax under act of 1888 
(Miss.) 689d. Notes and money of bank, from municipal taxation when charter ex- 
empts capital stock (Ind.) 254b. One whose debts exceed his personal property (Vt.) 
1363e. Solvent debts, notes and mortgages (Cal.) 65d, 66a. Credits within meaning 
of California constitution (Cal.) 65d. Property purchased to save a debt under char- 
ter providing tax on stock should be in full of all taxes (Ky.) 356c. Capital shares in 
hands of stockholders, under act of 1836 (La.) 457b. Treasury notes on hand, received 
in due course of business, although one purpose of retaining them was to escape taxation 
(Tex.) 1328c. 
What not exempt. Bank, from Ucense taxation (La.) 441b, 441d, 442e, (Pa.) 1231a. 
Savings company for working people, under act of 1846, sec. 1 (Pa.) 1184c. Stocks, 
under exemption authorizing deduction of bank's debts from its credits in making as- 
sessment (Utah) 1345b. 

In charter must be express, to render bank not liable (Pa.) 1187b — is a vested right 
which cannot be divested by subsequent legislation (La.) 417a, 443b. —from any tax 
but that imposed, invaUdates any other (N. C.) 1105c, 1106b. —from, "any state or 
other pubhc or corporate tax," includes municipal assessment for internal improve- 
ments (La.) 423a. —from all taxation includes city tax on dividends (S. C.) 1262a. 
—from tax on capital stock, does not include stock or real estate owned by bank 
(La.) 395b. 

Indefeasible right of exemption cannot be claimed by bank in ordinary course of legis- 
lation (Pa.) 1191c. 
' Legislature having power to charter a bank may exempt capital stock from taxation for 
municipal purposes (Ind.) 251e. 

"Local taxation" is used in restricted sense (Pa.) 1230a. 

Not imMed in renewed charter omitting exemptions (Del.) 129a. 

Foreign corporatioa 

Taxable, jf deaUng in loans and exchange with offices in State, under Act of 1898 (La.) 

455c, 456c. 
lot taxable, if dealing in 'temporary loans, under act of 1855 (N. Y.) 967d. 

Franchise 

taxable (N. Y.) 945a, (Tenn.) 1308a, but not after bank is enjoined from doing business 
(Mass 559d, (Yt.) 1365a. —although funds of bank are invested in U. S. securities 
(N. Y.' 945a. 



INDEX 195 



TAXATION— Continued 
Pranchise (continued) 

Tax under statute based on average deposits for last six months is tax on franchise 
existing when tax is due (Mass.) 559d. — on each share of capital stock under charter 
paid to State and not to county is franchise tax, and cannot be added to (N. C.) 
1106g. 

Iiyunction 

issues, in favor of bank, to restrain collection of tax, apparently legally, but in fact 
illegally levied (S. D.) 1279c, but not if it has no corporate interest (S. D.) 1277b. 
— to prevent sale of bank's real estate for taxes, which would create a cloud on title 
(Mo.) 721c. 

does not issue to restrain collection of tax levied by legislature having power to do so 
(Ga.) 159c. —^o restrain collection of tax on solvent debts (Cal.) 64d. —to restrain 
sale by assessor on illegal assessment (Colo.) 100c, (Mo.) 706d. —in favor of bank, 
to restrain sale of stock of its shareholders (Minn.) 638a, for bank would lose nothing 
by such a sale (Mo.) 706d. 

Insolvency 

Assets of bank taxable after assignment (111.) 182c, and assignee may be sued at law (id.), 

but debts due bank cannot be deducted from its credits (Wash.) 1386c. 
Receiver's right to property prevails over assessor's right to sell for tax levied after 

insolvency (Colo.) 100c, (Wash.) 1386c. 
Tax may be set off against claim of receiver (Mass.) 536b. 

License fee 

may be levied on bank having charter exemption from tax on capital (La.) 441d, 456b. 

— on a savings bank rSdeivittg deposits atid paying interest thereon (La.) 443c. —on 

state bank, although national banks are exempt (Mont.) 769b. —on company doing 

banking and pawnbroldng business (La.) 441a. 
is uniform, when levied equally on each meniber of a class (La.) 450b. 
may not be levied on free bank organized under Act of 1853 (La.) 442d. —on hank with 

less than $50,000 capital under a law imposing such tax on banks with capital of 

$50,000 or more (La.) 453c. 
computed on profits from exchange transactions plus surplus from discount interest 

account (La.) 457a. 

Xien 

does not exist on personal property of bank in favor of state for collection of taxes 
(Miss.) 683a. —on estate of insolvent bank for taxes (Pa.) 1192c. 

Xoans 

if solvent, and secured by stocks and bonds, though evidenced by promissory notes only, 
taxable (Cal.) 97c. 

Mandamus 

will not issue to compel bank to give assessors a list of its stockholders after it has given 
them number of shares, par value, amounts paid up and surplus (Wash.) 1381c, and 
the refusal to give such information will not authorize a tax to be levied in any other 
mode than that prescribed by statute (Mo.) 730c. 

Misnomer 

does not invalidate tax as against owner of bank stock (N. Y.) 1057a, nor deprive him 

of review of assessment (id.) . 
of surplus not material, if surplus was intended (N. H.) 816b. 

Mistake 

Receipt in full, given by mistake for [less than tax, does not bar recovery of balance 
(Me.) 461a. 

Mortgage 

for loan not taxable (Nev.) 810b. 

Municipality 

may be granted power to tax bank unless its charter contains exemption (Ga.) 159e. 

—when a. bank's charter provided that a tax on capital should be in full for all taxes 

to state (Mo.) 701a. ,,,,-.. r. 

may not tax capital of state bank (Ga.) 138a. —usedbj branches elsewhere (id.), —where 

capital stock of a bank is exempt for a year (Miss.) 682d. 
Municipal privilege tax is barred by the six year limitation prescribed by ch. 24, Act of 

1885 (Tenn.) 1319b. 

Uotice 

not necessary by assessor, on changing assessment list (Cal.) 97b. 

Actual not necessary (III.) 193d, (N. Y.) 1025b. ,^ , . , 

Defect in, to appear before board of equalization, waived by appearance (Cal.) 76d. 



196 BANKS AND BANKING 



TAXATION— Continued 
Officers and agents 

President may bind bank, though making false return of taxable property (Kan.) 321a. 

— is liable for statutory penalty for not furnishing list of bank's stock and holders 

according to city ordinance (Mo.) 701a. 
Officers' receipt for less than original tax, not conclusive (N. J.) 821c. 

Payment 

good in notes of state bank (Ark.) 51c, 51d, but subsequent repeal of statute permit- 
ting it throws burden on holder of notes of proving that he acquired them, bona fide, 
before the repeal (Tenn.) 1291d. 

under duress m.a.j he. recovered in assumpsit (HI.) 199a; but payment before threat to 
sell property is not payment under duress (Cal.) 66c. 

without duress is voluntary, and cannot be recovered (Cal.) 66d. 

under protest may be sued for (Me.) 478e; but whether recoverable depends on lalw then 
in force (id.). — not recoverable in assumpsit (111.) 194e. 

of illegal taxes is recoverable (Cal.) 66a. 

properly made out of common fund under charter provisions that bank should pay tax 
on all stock except state stock (N. C.) 1104a. 

not made by bank must be made by stockholders (Ga.) 159c. 

on bank notes sued on must be proved by plaintiff (Ga.) 155b. 

Penalty 

Bank is liable for failure to pay tax (Nev.) 808c. 

Pleading 

Allegation that defendant collector "pretended to hold tax against plaintiff" alleges no 

injury to support action for unlawful levy (Vt.) 1363a. 
Bill to enjoin taxation of bank on ground that tax act was corruptly passed must show 

damage to complainant by act's enforcement (Ind.) 250c. 
Burden of proving liability of non-resident on bank stock is on town (Me.) 478e. 
Burden on plaintiff of showing he is entitled to repayment ex aequo et bono, in action to 

recover taxes (Ohio) 1145d. — o« stockholder complaining of tax in one month instead 

of another, to show injury (111.) 193d. 
Petition alleging existence of "taxable moneyed capital" purposely omitted from taxation, 

except that of incorporated banks, bad on demurrer (Wash.) 1382e. 

Private bank 

assessable on its property, by name (Mo.) 743b, 757d. —on funds in correspondent 

banks, for purposes of exchange (Neb.) 774b. —in county where business is carried on 

(Mo.) 725c. 
not assessable on average deposits of customers (la.) 288a. — by county on capital 

invested in U. S. bonds (Mo.) 725c. 
for assessment purposes, may deduct all accounts payable, except current deposit funds, 

from amount of bills receivable, but not from money on hand, in transit, or in hands 

of correspondents (Neb.) 774b. 
Assessment against a private banking partnership is a partnership charge (Ohio) 1150a. 

Real estate 

taxable, though its value is included in valuation of stock by statute (Ala.) 38a. — in 
town where situated (Mass.) 537a. — if mortgaged to bank to secure payment of 
capital stock exempt from taxation, when purchased by bank at foreclosure (La.) 
453b. 

Recovery 

possible on unlawful claim if paid under protest after threat of enforcement of payment 
(Mich.) 606a. — if improperly assessed and paid after levy, under protest (Utah) 
1341c. — z/" paid under duress (111.) 199a. — in assumpsit (id.) — if assessment void 
(Cal.) 95c. — o/" excess tax paid on deposits, reduced by act of legislature (N. H.) 
819b. — although payment has already been made (id.). — although no return of 
ratable estate made (R. I.) 1255a. 

not possible, if paid with knowledge of facts to avoid (Cal.) 79d, (Vt.) 1360d. — on in- 
formal or irregular assessment (111.) 194e. — unless charter requirements for relief dur- 
ing imposition were observed (Mich.) 625e. 

Reduction 

not possible because bank taxed has suffered losses (N. J.) 821c. — by court unless appli- 
cation is first made to commissioners of taxes (N. Y.) 1019a. 

ReUef 

Bank cannot set up its own mistake and negligence as basis for relief in equity (N. M.) 
848b. 

Remedies 

For excessive taxation, appeal lies to commissioners or state board (N. J.) 847a. 
To collect license tax, assumpsit lies (Cal.) 73b. 



INDEX 197 

TAXATION— Continued 
Remedies (continued) 

To review taxation on stock, certiorari lies, and other personal property need not be in- 
cluded (N. J.) 837c. 
Mandamus will not lie to compel cashier to pay taxes assessed against stockholders, be- 
cause remedy by statute is clear and specific (Mich.) 616c. 

Savings banks 

taxable on bank stock unless exempt by law (Conn.) 115a. —on average deposits for 
past six months which is in nature of an excise tax and consequently amount invested 
in U. S. Bonds need not be deducted (Mass.) 548c. —on shares in bank of another 
state (N. Y.) 1044a. 

not taxable on reserve profits (R. I.) 1255a. —on national bank stock and city bonds 
in which its deposits are invested (Me.) 478c. — on fixtures and surplus where all 
stockholders are taxed (Mich.) 615b. —on deposits which are deductible as debts 
(N. Y.) 1074d. —on bank building, by statute, even though not occupied solely by 
bank (Mass.) 582b. —on guaranty fund and undivided profits (Mass.) 582e, (N. H.) 
818c. — when acting as money brokers or exchange dealers (Mo.) 709a. 

"Sailings deposits" of a Trust Company taxable (Cal.) 82a. 

Tax imposed on stockholders should be paid by bank (Ky.) 353c. 

Stock 

assessment based on actual value diminished by proportional value of bank's real estate 
(la.) 296b, (N. Y.) 973e, 974d, 975b, 983b, 1089c; but omission so to assess it can- 
not be corrected when producing inequality (N. Y.) 964c. —value of resources upon 
which value of shares is based without deducting government bonds, is valid (Ohio) 
1163b. —real, not par value, under Trust Company Act (K. J.) 847b. —value over 
U. S. bonds (N. J.) 825c. 

taxable (Cal.) 97b, (Ga.) 159c, (la.) 292a, (La.) 443a, (N. C.) 1110b, (N. H.) 816b. 
—unless right expressly relinquished (Ala.) Ic. —although capital is invested in U. S. 
bonds (La.) 450a. —to bank if returned as its private property, and bank cannot 
complain (Mo.) 750a. —to bank for stockholders (Ky.) 355c, (N. H.) 813b. —unless 
assessed to stockholders by statute (Ind.) 257b; contra (Ala.) 30a, (S. D.) V2,n\i. 
—to owner of stock on day of assessment (Ind.) 260c. —not bank itself (Mo.) 757d. 
—to stockholders individually at actual value of their stock and not upon property 
which shares represent (Mo.) 742b. —though held by savings bank (N. Y.) 1082a; 
contra (Mass.) 539c. — to owner in county of his residence (Ind.) 254a, (N. C.) 
1115d, (N. J.) 825c. (:enn.) 1285a, (W. Va.) 1396d. —if resident owner in ward 
of his residence (N. J.) 831b. —if non-resident owner, in ward where bank is located 
(N. J.) 830b. —j/" non-resident owners in state in which bank does business (Wash.) 
1387d; contra (Tenu.) 1285a. —zcA^i!A^r resident or non-resident owners, by county, 
by act of legislature (Va.) 1380a. 

not taxable both to owner and to corporation (R. I.) 1250d. -if held for a school fund 
(N. C.) 1103b. ^or county purposes, by statute (Pa.) 1187c. — z« town other than 
where office fixed by charter (Conn.) 108c, (Va.) 1380c (under statute). 

of national banks taxable, to holders, by state (Tex.) 1321c. 

Capital stock tax is a tax on property of which capital is composed (Ind.) 257d. —Covers 
notes given for unpaid instalments of stock (Va.) 1377c. 

Capital stock taxable if association formed under General Banking Law or Laws of 1838 
(N. Y.) 874c, 881b. —on actual value (Ind.) 257d. —after dissolution of corpor- 
poration if tax was assessed before (Wash.) 1386d. —where charter provided for tax 
of Vz of one per cent on stock subscribed, in lieu of all other taxes, but not until legis- 
lature makes provision for it (Tenn.) 1319b. —without deducting value of government 
bonds (Ohio) 1163b. ^ , ^^^^ ^ _^^^ , 

Capital stock not taxable under a State law, after surrender of charter (Md.) 505d. —under 
authority to collect tax on personal property (Ky.) 362a. —where legislature pre- 
scribed that tax of Vs of 1 per cent on bank stock should be in lieu of all other taxes, 
until system is changed (Tenn.) 1319b. 

U. S. bank stock in hands of stockholders taxable (S. C.) 1258a. , . , , . . ,. 

of shareholders must be included for taxation purposes in "credits" from which his debts 
are to be deducted (Wash.) 1386a, 1386b, 1386d; contra (Ind.) 280b, (Va.) 1381a. 

deposited with auditor not entitled to share of two-mill tax (111.) 182d. —may be with- 
drawn upon receipt of security (id. ) . ,. , /T \ oon 

of state and national banks may be taxed to bank and to holders respectively (la.) 299c. 
— may be taxed on equal terms (Wis.) 1405c. 

Mortgagor of stock is owner for taxation purposes (Mass.) 534c. 

Tax on stock of incorporated bank not equivalent to tax on capital of a private banker 
(Tex.) 1332a. —on market value of stock assessed to shareholders, but payable by 
bank, not tax on bank's capital (Va.) 1380c. —assessed in name of bank, instead of 
individual stockholders, does not relieve latter from HabiUty to pay tax (Ind.) 272c. 
—on bank stock by a city under Act of 1841 is valid, notwithstanding a contract be- 
tween State and bank that no fiirther taxes should be imposed (Md.) 498d. 

Inheritance tax collectible in Mass. on stock in corporations and national banks located 
in Mass. though taxed and transferred in state of testator's domicile (Mass.) 594a. 

^«>«r(? of bank's property for tax on shares of stockholders not permissible (Kan.) 335a, 
(N. Y.)958b. —o/" stock to satisfy illegal tax, actionable wrong (Vt.) 1363e. 



198 BANKS AND BANKING 



TAXATION— Continued 
Surplus 

of national banks, taxable by state (N. H.) 814c. 

of foreign bank, taxable (N. Y.) 1071d. 

used as capital, taxable (la.) 300b. 

not invested in federal securities, taxable (N. J.) 830b. 

of savings banks, not taxable (N. Y.) 1078a, 1079e. 

Tax on, is not tax on capital (Wis.) 1422a. 

If surplus of foreign bank, after deducting all property not taxable, and all taxable 

property, and all real estate and cash, equals value of stock in New York banks, then 

tax on surplus is proper (N. Y.) 1071d. 

U. S. bonds 

taxable, va. taxing " average deposits" (Mass.) 548c. — zw computing tax of incorporated 

state banks as well as national banks (Ohio) 1163b. 
cannot be included in personal property tax (la.) 299a. 

TAX COIiliECTOB 

(See Public Officers) 

TEJTDEK 

(See Payment) 

TORT 

Conversion 

constituted by application of special deposit by cashier to bank's debts (Pa.) 1219b. 
— cancellation of stock and refusal to issue new certificates (Mo.) 751b. — refusal to- 
account to wife for money coming from land owned by husband and wife (Mo.) 766a> 
— holding against an insolvent bank, a note purchased by the president from the cashier 
(Mo.) 763a. —failure to return collateral on payment of principal debt (Mo.) 738d> 
— theft of checks from payee, a credit to depositor and ratification of payment by 
maker (N. Y.) 1089a. — levy and sale of bank's property for tax on shares of stock- 
holders (Kan.) 335a. 

not constituted by mere failure to return bonds held as special deposit (Mass.) 549d> 
—failure to deliver collateral temporarily mislaid (Mass.) 578c, or special deposit 
seized in war without showing a redelivery to bailee (Tenn.) 1303b. — acceptance of 
unauthorized security (Ohio) 1155d. 

is inferable from cancellation of stock certificates and refusal to issue others (Mo.) 751b. 

is prima facie shown hy asportation or refusal to deliver bonds on demand (Tenn.) 1303b.. 

not excused by fact it might have occurred if trustees had used care (N. Y.) 988d. 

dates irom. time, demand is made (Tex.) 1330c. 

is not shown without a demand and refusal (N. Y.) 1062b. 

Suit for, cannot succeed in absence of identification of trust fund (Mo.) 763d. 

Damages 

given from time of conversion with interest (Tex.) 1330c. —for conversion of stock cer- 
tificate held as collateral are value of debt due (N. D.) 1129a. —for converting note 
are prima facie amount nominally payable (N. Y.) 934a. 

are amount of converted fund as a preferred demand, when mingled with the general 
assets of bank (Mo.) 751c. 

for arrest on charge of fraudulently passing check are not special (Neb.) 784b. 

Fraud (see Fraud) 

in representing a person's credit does not render national bank liable (Mich.) 627e. 

Malice 

by taxing officers in making error is necessary to render them liable (N. Y.) 1025d. 
cannot be predicated of purchase of bank bills for redemption in specie (Vt.) 1350c. 
is not shown if statement was true, though unauthorized (La.) 398a. 

Malicious Prosecution 

Action for, lies against savings banks (Mass.) 566c. 

Malicious Statement 

by cashier makes bank liable (Mich.) 618b. 

Slander 

Imputation of insolvency to trader is actionable per se (Minn.) 648a. 
Unwarranted refusal to honor depositor's check permits general damages in slander 
" (Minn.) 648a. 

Ultra Vires (see Powers of Banks) 

not applicable to a tort by corporation (Wash.) 1387e. 



INDEX 199 



TOWN TBEASIIBER 

(See Public Officers) 

TREASIJBEB 

(See Corporations, Officers and Agents) 

TRUST COMPAJTY 

(See Banks) 

TBUSTEE PBOCESS 

(See Attachment) 

TRUSTS AND TRUSTEES 

Abandonment 

is effected by presenting claim to assignee without claiming trust fond (Kan.) 330c. 

Acceptance 

by beneficiary is not necessary (Cal.) 88d. 

Action 

at law lies against trustee for misconduct (N. Y.) 994d. 

Administrator 

of trustee is clothed with trust (Cqlo.) 102b. 

Advancement 

is not effected by trust in personalty in favor of child (R. I.) 1254c. 

Augmentation 

of assets is necessary to impress special deposit with trust (Minn.) 656c. 



of insolvent bank are trust fund for creditors (Neb.) 776b, (S. C.) 1264d. —for creditors 
and stockholders (Ind.) 273d, (Tenn.) 1300b. -/or creditors, after debts to and from 
customers are settled (Tenn.) 1305c. —provided the act of insolvency is positive (id.). 
— to be realized on by bank as trustee (N. J.) 830c. 

Assignee 

of bank is estopped from denying liability for trust funds wrongfoUy paid (Ala.) 33b. 
of bonds deposited to secure bank's circulation, takes subject to trust in favor of bank's 

creditors (Tenn.) 1293c. 
of judgment is not presumed to hold it in trust (N. Y.) 902a. 
of trust fond, and his creditors, stand in assignor's shoes (Va.) 1381b. 

Attachment 

of fonds deposited by a trustee, who is also cashier, will not lie on writ describing the 
trustee as cashier (Me.) 477a. 

Attorney- 
depositing trust fonds is not a necessary party to recovery (N. Y.) 1059d. 

Breach of Trust . . 

Bank not knowingly participating with depositor, is not liable (111.) 204c. -participating 

cannot invoke defense of limitations (Md.) 514c. —participating, is liable to new 

trustee notwithstanding old trustee's ratification (Md.) 514c. 
fudgment creditors with unsatisfied execution may sue holders of unpaid stock and 

directors for breach of trust (Ga.) 150b. 
Manager acting in good faith, without personal benefit is not liable (N. J.) 835e. 
President using bank's fonds to purchase its stock, is guilty (N. Y.) 1023a. —allowing 

irresponsible person to draw from bank without security, is guilty (Mich.) 609a. 
Stock transfer may be valid, though a breach of trust (Md.) 500c. 

Capital 

of bank is a trust fund for creditors (Ga.) 142a. 

Capital Stock 

is a trust fond for creditors (N. Y.) 937a. 

Checks— see Setting Apart 

Court Fiinds— see Depositary 



200 BANKS AND BANKING 



TRUSTS AND TRUSTEES— Continued 
Collections 

are trust moneys (Colo.) 107b, (Kan.) 340a, (Miss.) 689c, (Mo.) 747d, (Mont.) 769d, 
(Neb.) 781c, (N. Y.) 1058c. —recoverable, though mingled (N. Y.) 1092a. —recover- 
able from assignee (la.) 296a, (Neb.) 780d, though mingled (Mo.) 750b. —recover- 
able from receiver (Kan.) 340a, (Neb.) 781c, 788c. —recoverable of one taking with 
knowledge (Neb.) 796d. —in which general creditors cannot share (S. D.) 1284a. 

are not trust -moneys unless shown to be money instead of credit (N. Y.) 1037a. — unless 
to be kept separate by instruction (Mich.) 614b. —unless actually represented in 
assets (Ind.) 275c. —where bank may rightftiUy convert them (Minn.) 657a. 

Plaintiff must show that defendant's assignor was agent to collect, and did collect the 
money (Colo.) 104c. — manner of conversion and that proceeds came into assignee's 
hands (Kan.) 317b. 

Decree 

Money paid under a decree is a trust fimd for creditors (Neb.) 809d. 

Deed 

by trustee without power to charge, to secure unexisting debt, is invalid (D. C.) 132a. 

Deed of Trust 

to secure issue of bonds, is not invalid (N. Y.) 910a. 
Release obtained by forgery may be canceled (Mo.) 757c. 

Delivery 

to trustee with transfer of title, is necessary to create a trust (N. Y.) 1083a. 

Deposit (see Public Money) 

for another, a trust (Colo.) 103d, (N. Y.) 1062d. — "?« trust," is not a trust (Mass.) 
552b. — "intrust" \.o prevent attachment, is unrecoverable, except to pay depositor's 
debts (Mass.) 546a. — "in trust," depositor to draw, does not go to donee on depos- 
itor's insanity (N. J.) 833c. —"in trust," with notice to donee, a trust (Mass.) 564a. 
— "in trust," without notice or delivery of passbook, no trust (Me.) 489b, (Mass.) 
554b. —"in trust," creates trust, though book retained (N. Y.) 1067c. —"in trust," 
with intent, a trust (Me.) 489b. — "in trust" for children who die, no trust (N. Y.) 
1063a. — "as trustee" creates trust, without memorandum (R. I.) 1254c. 

for depositor or another creates trust (Cal.) 88d. — with intent, but without notice, 
no trust (Me.) 489c. 

in anothei'^s name, bank book in his name, a trust (Me.) 485e. — interest retained, a 
trust (Me.) 491e. — with notice, and acceptance by trustee, no trust (Md.) 490e. 
— control retained, no trust (Me.) 484d. — control and passbook retained, no trust 
(Mass.) 576a. — control retained, notice to donee, with order from him permitting 
depositor to draw, a trust (Mass.) 576a. 

in name of president and cashier of bank to indemnify bank, a trust (Tex.) 1335c. 

of trust money, in trustee's name, does not destroy trust (Mass.) 960d, though part 
drawn on personal check (Mo.) 754c. — without authority, a trust (la.) 305a. — by 
cashier makes bank contractually liable to beneficiary (Me.) 'ima^. — may be impressed 
with trust despite form of receipt (Kan.) 317a. 

Agreeinent to transfer on attachment does not raise trust (Pa.) 1194e. 

Assignment of hook, with declarations of intent, creates trust in deposit (Cal.) 77b. 

Failure to apply deposit to note sent for collection, creates no trust (Mich.) 617b. 

Money put in packages for depositor just before assignment, no trust (Mich.) 610a. 

Special deposit not fully received before insolvency, a trust (111.) 234b. — not to be 
applied on note, a trust (N. Y.) 957a. — not augmenting receiver's fund, no trust 
(Minn.) 656c. 

Specific deposit creates trust (Kan.) 329b. — of city ftinds, a trust (Mich.) 628e. —for 
investment, a trust, though mingled (Mo.) 727d. — as security, a trust, though min- 
gled (Mo.) 734c. —to meet check, a trust (Mass.) 593a, (Mo.) 731a. — to pay note, 
a trust (Kan.) 316b, 317a, (Neb.) 792c, 792d, 792e, 793a; but not for benefit of 
sureties (Ind.) 265b. —for purpose unknown to bank, no trust (Ore.) 1169b. 

For necessity for intent, see Intention 

Depositary 

of court funds only required to keep trust ftinds safe (111.) 214d. 

Bank is trustee to realize on assets (N. J.) 830c. — not knowingly partaking in de- 
positor's breach of trust, not liable (111.) 204c. —holding trust securities as collateral 
knowing of trust, must see that they are used for trust purposes (Mass.) 570b. — is 
bound by contract to beneficiary by deposit of one who is both cashier and trustee 
(Me.) 477d. 

Savings bank may sue trustee at law for misfeasance or nonfeasance (N. Y.) 994d. 

Destruction 

of bond, withoutjauthority does not destroy beneficial interest (N. J.) 824a. 

Dischaxge 

is effected by returning specific deposit on failure of purpose (Kan.) 323a. 



INDEX 201 



TRUSTS AND TRUSTEES-Continued 
Discharge in Bankruptcy 

petitioned formatter action against trustee for misconduct, no defense (N. Y.) 994d. 

Estoppel 

Bank's assignee is estopped to deny liability for wrongfully paying trust (Ala.) 33b. 
Claim of trust is not affected by receiving dividends (Mich.) 622c, if they are returned 
(N. Y.) 1036a. 

Evidence 

Burden of tracing trust fund is on claimant (Minn.) 654e. — o/" proving title is on claim- 
ant (Wis.) 1417c. — o/ proving no trust is on bank paying funds (Pa.) 1202a. 

Cashier^ s oral statements are inadmissible to prove trust against bank (Neb.) 773a. 

Deposit "in trust" may be shown by declarations of interest (N. Y.) 1070c. —is not 
conclusive evidence of trust (Mass.) 559e. 

Intention to vest bank with power to sell under trust is shown by conveyance to bank 
and notice thereof to public (la.) 308d. 

Interest received by depositor is not inconsistent with trust (N. Y.) 1062d. 

Negligence of trustee in investing in certificates of deposit may be shown by proving cus- 
tom of bank not to issue them (Mass.) 577d. 

Presumption of trust arises from entry of deposit "in trust" for another (Me.) 489b. 
— that trustee draws from his own funds, arises from mingling them with trust ftmds 
(lU.) 225c, (N. Y.) 1031a, 1036a, (Wyo.) 1430a. —to be drawn by bank, is that 
trustee does his duty (lU.) 214d. — w that money credited to trustees belongs to bene- 
ficiary (Pa.) 1202a. —of tTost does not arise from assignment of judgment by in- 
dorsee against maker of note (N. Y.) 902a. 

Theft of servant stealing and investing mon^y need not be proved sufficiently to convict 
him, in order to have trust declared (Neb.) 795d. 

Fraud 

of bank in obtaining deposit cr^sit^s trast (Ja..) 308a, (Minn.) 639a, (Neb.) 780c, (Pa.) 

1243d. — zvith knowledge of insolvency, does not create trust (Wash.) l383d. 
of depositor in obtaining funds, impresses trust for owner (Minn.) 639a. 
of officers and directors in using bank's funds makes them trustees (Cal.) 67a. 
in buying land with stolen funds impresses land with trust (Mass.) 560b, (Neb.) 795d. 
is necessary to establish trust as to deposited checks (Minn.) 658a. 

Breach of trust is not fraudulent, if in good faith, without personal benefit (N. J.) 835e. 
Filing claim with trustee's assignee is no waiver of owner's claim to trust (la.) 296a. 

Identification 

of trust fund is effected by notice to depositary (N. Y.) 1056d. 
is unnecessary (Mo.) 747d. 

is necessary where deposit was- induced by bank's fraud (Neb.) 780c. 
Identity of coin or bank bills need only be substantial (Pa.) 1198b. 

Indorsement 

of bill for account of payee creates a trust (Mo.) 713c. 

Intention 

to create a trust must appear (Colo.) 102c, (Me.) 485c, 489b, (Mass.) 576a. -^ay be 
shown where depositor in name of another takes orders from the latter allowing him 
to draw (Mass.) 576a. — shown by declarations, and accompanied by assignment of 
book, creates trust (Cal.) 77b. 

Interest 

is recoverable on trust funds (Neb.) 797a, misappropriated by bank (Neb.) 792c, 

792d, 792e, 793a. 
reserved does not prevent creation of trust (N. Y.) 1062d; contra, (N. Y.) 1069c. 

Investment 

in state bonds or coupons is not effected by sale of stock held by slate in trust, and 
payment therefor in state bonds or coupons (Mo.) 706e. 

Jurisdiction 

CouH has jurisdiction over all trusts (N. J.) 830a. —will direct management of trusts 
(id.) . —of equity will decree delivery of stock from trustee to owner (N. H.) 812b. —of 
equity will cancel release of trust deed, procured by forgery (Mo.) 757c. 

Loan 

of trust funds, without authority is recoverable by trustee (Mass.) 569b. 
of bank bills by teller to teller of another bank cannot be followed when mingled (S. C.) 
1263e. 

Misappropriation 

Assignee of bank is liable for trust funds wrongfully paid (Ala.) 33b. 

Bank not knowing deposit to be a trust is not liable (Neb.) 796a. —for wife of depositor, 

is not liable (N. Y.) 1086b. 
Bank with notice of trust must ascertain that securities held as collateral are used for 



202 BANKS AND BANKING 



TRUSTS AND TRUSTEES-Continued 
Misappropriation (continued) 

trust purposes (Mass.) 570b. — is liable for receiving and selling fund as collateral 

(Mass.) 580b. — applying deposit to depositor's personal debt, is liable (Md.) 515a, 

(Wyo.) 1430b. 
Bank can derive no benefit from misappropriating known public funds (la.) 295a. — jy 

liable for interest on funds misappropriated (Neb.) 792c, 792d, 792e, 793a. 
President using funds of bank to purchase its stock is liable (N.Y.) 1023a. 
Trustee's payment of personal debt out of trust, is not good as against beneficiary (Ala.)- 

33b. — unauthorized loan may be recovered by him (Mass.) 569b. 

Misconduct 

Discharge in bankruptcy, petitioned for by trustee after suit, no defense (N. Y.) 994d. 

Miscredit 

of known trust fund to trustee's personal account makes bank liable (Md.) 514c, (Mo.) 
732d. —impresses a trust on bank's assets for undrawn portion (Mo.) 754c. — does- 
not make bank liable where check deposited reads, "For deposit to credit of C, being- 
due as trustee" (Md.) 514c. 

Mixing trust and other funds. See Recovery 

Notice 

to cestui not necessary to enable him to follow converted deposit (N. Y.) 1025a. 

to clerk of trustee of bank, no notice to trustee (Ark.) 46a. 

to depositary entitles fund to preference after insolvency (la.) 295b, though mingled 

(Neb.) 796b. — makes it liable for miscredit (Wyo.) 1430a, or misappropriation by 

itself (Mass.) 580b, or trustee (Mass.) 570b, (N. Y.) 1028b. —does not make it 

liable for payment on depositor's order (Wyo.) 1430b. — is sufficient identification. 

of fund (N.Y.) 1056d. 
to one taking proceeds of collection misapplied by agent, makes him liable to owner 

(Neb.) 796d. 
Designation of depositor as "county treasurer," no notice of trust (Mo.) 724b. — of 

trustee on stock book, no notice as to cestui or terms (Md.) 501a. 
Lcu:k of notice relieves depositary from liability for misappropriation (Neb.) 796a, (N. 

Y.) 1086b. — relieves bank from liability to cestui unless bank still retains the funds. 

(Ore.) 1169b. 

Oral Declaration 

of trust in personalty is valid (R. I.) 1253c. 

Parties 

Beneficiary of trust deposit may sue depositor's executor individually (N. Y.) 1015d. 

Cestui' s executor may sue bank or depositor's executor, but not both (N. Y.) 1028b. 

Trustees may be complainants against beneficiaries (Me.) 475c. — as representatives of 
cestui, may sue for fund (Mo.) 754c. — of bank, under extended charter, may sue in 
corporate name (Ark.) 52c, but not in their own (id.). — consisting of state auditor,, 
president and cashier, may sue at law for bank (Miss.) 665c. — suing to enforce stock- 
holder's liability for bank bills, need not join cestui (Mass.) 535a. — are not all neces- 
sary parties to suit against one alone for misconduct (N. Y.) 994d. 

Pledge 

to creditor's agent, vrith power of sale, a trust (Ala.) 28d. 

of stock may make holder liable, as trustee, to billholders (Mass.) 534d. — to cashier 
for debt to bank, makes him, not bank, trustee of pledgor (Mass.) 520d. — as col- 
lateral to bank knowing of trust, makes bank liable to new trustees and cestui (Mass.) 
580b. 

Power to Sell 

pledge for creditor's benefit, a trust (Ala.) 28d. 

trust property, exists whenever necessary to carry out grantor's purpose (la.) 308d. 

requires no particular form of words for creation (la.) 308d. 

PubUc Money 

Bank crediting deposit, with knowledge, to trustee, is liable as trustee (Wyo.) 1430a. 

— can derive no benefit from misappropriation of known public deposit (la.) 295a. 
Conveyance of sinking fund by state to state auditor, president, and cashier of bank, 

as managers, a trust (Miss.) 665c. 
Deposit, a trust (Mich.) 629a. —of city funds specifically, a trust (Mich.) 628e. —with 

notice, a. trust (la.) 295c, (Neb.) 796b. . — may be followed as preferred claim (Neb.) 

796b. — of school funds recoverable, though mingled (la.) 295b. — of tax collections 

by deceased sheriff's deputies, a trust (Va.) 1378d. 

Ratification 

Trustee may ratify agent's irregular mortgage by accepting proceeds (la.) 308d. 



INDE X 20a 

TRUSTS AND TRUSTEES— Continued 
Recovery 

Administrator of depositor "in trust" must produce book or indemnify (Mass.) 54.6a. 

Assignee of trust and his creditors stand in assignor's shoes (Va.) 1381b. 

Collections may be recovered (Cal.) 104c, (Kan.) 340a, (Mo.) 750b, (Neb.) 781c. —if 
assets increased (Ind.) 275c. — in hands of holder knowing of agent's misapplication 
(Neb.) 796d. — rt/ifcr bank's insolvency, without presenting claim (Mo.) 747d. — where 
collecting bank sends its own check for proceeds (Miss.) 689e. — as preferred claim 
though mingled, if amount on hand is sufficient (Tex.) 1326a. 

Identification is effected by notice to bank holding deposit (N. Y.) 1056d. 

Trust fund may be followed (Conn.) 122b, (Mich.) 628e, (N. Y.) 1059d, (S. D.) 1276c,. 
(Wis.) 1411d; contra, where plaintiff's conduct estops from asserting trust (Mich.) 
623b; where identification is impossible (Mo.) 763d; where mingled but not shown 
to be part of existing deposits (Miss.) 692c. —if identifiable (Mich.) 613a, 629a, 
(N.Y.) 1056d, (Pa.) 1198b, (Wis.) 1412b, 1417c, (Wyo.) 1429c, 1430a; contra, identi- 
fication unnecessary (Mo.) 727d. — if rights of general creditors are not impaired 
(la.) 309c. — if assets have been increased (Mo.) 754c. (Wis.) 1412c. — «/ deposited 
specifically (N. Y.) 1012a; to pay note (Kan.) 316b, 317a; though not traceable 
(Neb.) 792c, 792d, 792e, 793a. —where proceeds of wrongful sale (Neb.) 793c, (N. Y.) 
1067b. — where trustee applies it to own debt (Ala.) 33b. — where kept separate- 
and not fully received before insolvency (111.) 234b. — where money lent by savings 
bank ultra vires (Mass.) 569b. — where money of one corporation is paid for goods- 
for another by common officer (S. D.) 1274a. —though mingled (Mo.) 734c. — though 
owner receive dividend paid defaulter's surety (Kan.) 328a. — though deposited with- 
out the knowledge of plaintiff cestui (N. Y.) 1025a. — in suit against depositor's execu- 
tor (N. Y.) 1015d, 1025a. 

Trust fund is entitled to preference (Kan.) 322d, (Neb.) 788c. — y^fund can be identified 
(N. H.) 820c, (S. C.) 1273b. —j/ deposit is to cover check (Mo.) 731a. —«/ assets. 
are increased and creditors uninjured (la.) 305c. — though owner hold security from 
third person (Kan.) 322d. — though fund not retained in form of money (la.) 305c. 
— though fund mingled, if balance equals trust fund (Tex.) 1326a. 

Preference is not allowed where fund cannot be identified (Neb.) 780c, (Ohio) 1147b, 
(Pa.) 1240a, (Wis.) 1416a. — where collecting bank accepts drafts in lieu of cash 
(Miss.) 692d. — where money is put in packages for depositor just before assignment 
(Mich.) 610a. 

Revocation 

A trust is irrevocable (R. I.) 1254c. — by subsequent declaration (R. I.) 1253c. — in ab- 
sence of reservation of power to revoke (N. Y.) 1070c. 

A trust may be revoked in part by withdrawal from deposit (Cal.) 88d, leaving balance- 
subject to trust (id.). 

Sale 

Trustees, holding stock, may sell to bank property held for its benefit (Cal.) 99c. 

Security 

A legal debt due from bank in short time is better security for trust than shares of 
stock (Mass.) 577d. 

Setting Apart 

specifically, necessary to constitute trust (N. Y.) 1050d. 

money in package for depositor just before assignment, no trust (Mich.) 610a. 
promised by teller, but not performed, no trust (111.) 228a. 

not effected by check of maker of note on collecting bank (Miss.) 691d; contra, as to 
trustee's check on fund, for cestui (N. Y.) 1017c. 

Setoff 

Debt due bank as trustee cannot be set off against principal debt (111.) 234b. 

Statute of Limitations 

does not run against trust (Ga.) 152b. —against breach of trust by bank (Md.) 514c,. 
or manager of savings bank (N. J.) 838a. —against stock subscriptions (Miss.) 
182a. 
Stock 

Bank as trustee must use diligence to protect holders from unauthorized transfer (N. C). 

1123a. 
Instalments, unpaid, no trust after statutory relief from subscriptions (Ga.) 146b. 
Notice of trust not effected by designation of trustee in stock book (Md.) 501d. 
Statute of Limitations not applicable to stock subscriptions (Miss.) 682a. 
Subscriptions to stock are trust funds (id.). 

Trust must appear in books, to relieve holder from assessments (Conn.) 121d. 
Trustees may pledge for personal debt though trust appears on books (Md.) 500c. 

Title 

to certificate of stock may pass to buyer knowing that his vendor bought with trust 
funds (Neb.) 793c; but cestui may follow the proceeds (id.), —deposit must, to create 



204 BANKS AND BANKING 

TRUSTS AND TRUSTEES— Continued 
Title (continued) 

trust, be transferred, and there must be delivery (N. Y.) 1083a. — deposit is not, in 
equity, in one who pledges his interest therein before deposit (Va.) 1381b. — land vests 
in appointees to vacancy among liquidation trustees (111.) 206b. — land does not pass 
by deed of trustee without power to charge property, made to secure nonexisting debt 
(D. C.) 132a. —negotiable paper, purchased with trust funds of estate, is in estate 
(N. J.) 836b. 

Trustees 

Duty of trustee is to execute trust with ability (Pa.) 1174c. —of manager of savings 

bank is to exercise ordinary diligence (N. J.) 838a. 
Liability of bank for specific deposit is discharged, after failure of purpose, by returning 
deposit (Kan.) 323a. —of bank to cestui arises from deposit by cashier as trustee 
(Me.) 477a. —of bank to public, created by crediting known public funds to trustee 
(Wyo.) 1430a. —of manager of savings bank not affected by Statute of Limitations 
(N. J.) S38a. —of president created by his permitting irresponsible person to draw 
without security (Mich.) 609a. — of savings bank for misconduct, is at law (N. Y.) 
994d, and is unaffected by discharge in bankruptcy petitioned for after suit (id.). — of 
trustees of insolvent bank, arises from negligent loss of securities (Tenn.) 1302a. 
— of trustee holding stock in trust does not exist in favor of billholders (Mass.) 535a. 
Parties to Actions. See Trusts, Parties. 

Powers. Bank may protect stockholders from unauthorized transfer of stock (N. C.) 
1123a. — may rely, as trustee for stockholders, on assessor's representations as to 
assessments (Wash.) 1388d. —may not, where deposit is an express trust, change 
relation to that of debtor (S. D.) 1276c. 
Liquidation trustees,- surYiYing cotrustee, may perform valid acts (111.) 206b. 
Officer buying land sold for bank, with bank's money, cannot profit (Tenn.) 1302a. 
Savings bank may recover money lent ultra vires (Mass.) 569b. — may act as trustee 

for others than stockholders and creditors (Me.) 464c. 
7>-z«-/^^5 of bank may testify (Conn.) 112b. —way, though stockholders, take mort- 
gages to secure debt to bank (Cal.) 99c. —may not, under act repealing bank's 
charter and making all proceedings ex parte, bind bank by contracts (la.) 283c. 
— may not, under a general assignment by bank with renewed charter, sue on its 
bonds in their own names (Ark.) 52c. 
Trustees may transfer title to stock though in breach of trust (Md.) 500c. — may 
not deal in trust property (Cal.) 174c. 
Relation of trustee and cestui que trust arises between bank holding stock and owner of 
stock (N. H.) 812b. —bank and stockholder, under Bal. Code, sec, 4825 (Wash.) 
1388d. — cashier holding stock to secure debt to bank, and assignor of stock (Mass.) 
520d. — directors and bank's creditors (Ala.) 25c. — managers of savings bank and 
bank (N. J.) 838a. —officers of bank not legally organized, and stockholders (Ind.) 
262d. — receivers and creditors (N. Y.) 859e. — trustees of national bank and cus- 
tomers (D. C.) 132a. 
Relation does not arise between bank and assignor of stock to cashier to secure debt to 

bank (Mass.) 520d. — receivers and bank or stockholders (N. Y.) 859e. 
Voluntary trustees not entitled to commissions as against receiver (N. Y.) 1081c. 

'Waiver 

Right of owner not waived by filing claim with trustee's assignee (la.) 296a. 

"Wrongful Sale 

Cestui may follow the proceeds of wrongful sale by trustee (Neb.) 793c. 

IJIiTBA VIKES 

(See Powers op Banks) 

USAGE 
(See Custom and Usage) 

USURY 

(See National Bank Act) 
Application 

of payment of unlawful interest is to principal (Neb.) 777b. 

Bank's Liability 

is that of natural persons (Mass.) 516d, (Mo.) 710d, (Va.) 1368d, (Wis.) 1400a. 
e^^^wi/j to cashier's act in line of employment, though against instructions (Minn.) 647a. 
does not extend to officer discounting, and injunction may issue to restrain him (Pa.) 
1189a. — to cashier's act unless authorized or adopted by bank (Vt.) 1360a. 



INDEX 205 

USURY— Continued 
Consideration 

exists for promise to pay usurious notes after usury law is repealed (Ga.) 158b. 
does not exist where illegal interest is charged by mistak". (Ala.) 23c, or if based on for- 
bearance to sue (La.) 392a. 

Credit 

of interest paid since beginning of loan may be made in bank's suit on renewal of usurious 
loan (Pa.) 1206d, 1209c. 

Custom 

may repel charge of usury (Miss.) 664c, (Va.) 1369c; conira (la.) 307a. 

DeJactioir 

should be made of escessive interest on prior notes for which note in suit was given 

(Me.) 468c. 
cannot be made of usurious interest- oa note not in suit (Pa.) 1206d. 

Defense 

of usury in inception is good against subsequent hoTdor (Ala.) 23b. —good for accom- 
modation indorser as against bank, whose president makes usurious discount (Del.) 
129c; contra (Tenn.) 1298b. —good where accommodation note is discounted knowing 
its character (Me.) 471c. —good where party is ignorant of the law (Mass.) 516d. 
—good to renewal of usurious bill (Mich.) 602c, (Neb.) 784c. —good to defendants 
subrogated to parties charging usury (Pa.) 1210b. —good where monthly accounts are 
stated (Pa.) 1210b, although it does not appear on face of note (N. Y.) 983c. 

of usury is not valid in suit on note (Cal.) 69a, (Me.) 472b, against indorsee (Ala.) 25a, 
or maker (N. Y.) 922a, or bona fide holder (N. Y.) 944b, or sureties (Vt.) 1353b. 
— on guaranty of all paper of certain person, held by bank (Md.) 509a. — as to origi- 
nal contract which was not usurious, though subsequent one was (Neb.) 771a. —by 
receiver of trust company making illegal loan (N. Y.) 914c. 

of usury to entire demand is bad on general demurrer (Tenn.) 1298c. 

Defense of former suit is not available in suit to recover double interest (Ala.) 38c. 

Usury -may be pleaded by borrower against assignee of debt, though certificate of no de- 
fense is given (Pa.) 1204a. 

Usury must be pleaded by bank or principal be tendered to avoid full liability (Wis.) 1398b. 

Definition 

It is usury to loan depreciated bank biUs (Miss.) 676c, (N. C.) 1106a, or notes below 
par (Miss.) 677a. —if interest is excessive (la.) 306c, (La.) 405b, (Wis.) 1402c. 
— if renewal note contains usurious interest of original note (Kan.) 321d. — i/" ex- 
change is added to legal interest on new obligation payable in same place (N. Y.) 
937e. — if excessive interest is deducted on discount and proceeds credited (N. Y.) 
977a. — z/ excessive interest is charged under color of exchange (N. Y.) 891a, — if 
it is contract to pay excessive price for bank stock (Va.) 1368d. —if interest is re- 
served on fiill amount where part of discount is paid and certificate of deposit is taken 
for balance (Mass.) 539a. —if interest for 91 days is taken on forbearance for 90 
(N. Y.) 854c. — ^j/ collection fee in addition to interest is to be paid (Ohio) 1138c. 
— ^2/^ excessive rate of discount is charged on domiciliary biU (Pa.) 1189c. — if\t is 
contract to pay $40,000 with interest, for loan of $28,800 (Pa.) 1204a. —z/ extension 
of debt by annual discount exceeds rate allowed on notes of more than year (Ala.) 
23c. — to loan depreciated certificates of deposit at face value (N. Y.) 895a. —if 
use of 'proceeds of discount is restricted where interest is deducted on full amount 
(N. Y.) 937c. — although agreement did not appear in note made at time of loan (Ky.) 
365b. —if iiere is actual payment of illegal interest in whole or part (Pa.) 1203a, 

There must be a loan to constitute usury (Va.) 1366d. 

It is not usury to take interest in advance (Ala.) 2b, (Ark.) 55b, (Ky.) 361b, (Md.) 
498a, (Mass.) 524a, (N. C.) 1105a, (Va.) 1368d. —to take sight drafts for loan of 
bank bills for more than 10 per cent of capital and agreeing not to enforce drafts if 
bank's paper is protected by borrower (Vt.) 1352c. —to discount at 10 per cent 
under express contract in writing (Mich.) 609c. —to discount bills at agreed interest 
(Mo.) 708d. — ifo pay indorser for procuring discount by bank (N. Y.) 944d. — to 
sell a deposit (La.) 410d. —to deposit proceeds of discount subject to draft (Mass.) 
548a. —for borrower to agree to keep deposit with lender (N. Y.) 938a. — to loan 
depreciated bank notes (Tenn.) 1286a. —to charge premium for exchange (N. Y.) 
890a, 905c, 918a. —to charge premium for exchange on paper payable elsewhere 
(Mo.) 702e, (N. Y.) 875d, 877a, 879d, (Pa.) 1189c. —to agree to purchase exchange 
from lender (N. Y.) 938a. —to take difference on exchange (Miss.) 667b. —to take 
exchange if debtor elects to pay by draft on another city (N. Y.) 938a. —to take 
premium money equal in value to money due (Mass.) 516a. — to sell bonds below par in 
foreign cities (N. Y.) 897d. —if note was legal where made, but illegal where dis- 
counted (N. Y.) 955a. —z/" the unlawful interest is not intentionally taken (Ala.) 23c, 
37c, (Ark.) 42b, (iVliss.) 664c, (N. Y.) 872c, 905c. —to purchase $21,000 of existing 
notes for $20,000 (Ind.) 249c. —to promise to pay partnership debt for interest of 
one partner (Ark.) 59a. —to apply proceeds of note to payment of usurious debts 



206 BANKS AND BANKING 



USURY-Continued 
Definition (continued) 

(Ark.) 56c. —ifhj failure of borrower to perform, the rate was higher than legal 
rate (Vt.) 1352c. — if profits are included in note given for purchase price (Ark.) 
56c. —for borrower to redeem bank bills received on loan and to purchase ones not 
current, at par (Mass.) 517d. — to charge interest on renewal note includingtold 
principal and interest (Ark.) 52b. — to charge interest on renewal of note on which 
maker was indorser (Pa.) 1206a. — to make trifling overcharge of interest (Md.) 
498a, (N. Y.) 876c, (Vt.) 1347a, 1347b. —^ give additional issue of stock on trans- 
fer of mortgage given for stock subscription (N. Y.) 894d. —to sell stock at excessive 
price (Va.) 1366d. — to have a transaction in uncurrent funds (N. Y.) 917d. 

Effect 

Usury^ a.-vox&.s the whole interest (Ala.) 25a, (La.) 391b, (Miss.) 667b. —avoids [the 
excess over legal interest (Me.) 471c, 472b, (Miss.) 676b, (Mo.) 710d, (Tenn.) 
1295c, 1298c, (Vt.) 1352c. —destroys interest bearing quaUty of note (Kan.) 325c, 
336c, (Mass.) 568e, and vitiates the mortgage security to the same extent (Ohio) 
1153c. —recovered by bank is held in trust for indorser (Pa.) 1204d. —is regarded 
as actually paid where notes are specifically given for such interest (Tex.) 1325d. 

Usury does not render contract void (Miss.) 670f, (Ohio) 1149b; contra (Ala.) 34a, 
(OHo) 1135b. 

Usury does not render notes void in the hands of innocent holder for value (Neb.) 771a. 

Usury does not avoid note as to sureties (Mo.) 710d, but renders it void only to same 
extent as to principal (Ohio) 1152c. —taint renewal if original transaction was 
usurious (Mo.) 720e. 

Usury does not affect valid original if usurious renewal is made (N. Y.) 879d, or the 
parties thereto (Ohio) 1154b. 

Usury does not authorize retention of principal, when charged on a deposit (N. H.) 819c. 

Usury does not apply under Free Banking Act to succeeding bank under charter forfeiting 
interest only (Pa.) 1213d. —estop bank from giving transaction one form to 
avoid usury and then giving it true form to evade Uabihties attaching to officers 
as individuals (Neb.) 801b. 

Evidence 

of corrupt agreement is shown by receipt of usurious interest (N. Y.) 937b. 

of similar transactions by joint maker are incompetent against real owner in action for 

penalty (Pa.) 1211a. 
of usury cannot be given by maker of note (Mass.) 521b. 
that discount rate exceeded that allowed by law is not per se evidence of usury, but 

that it exceeds rate of exchange must also be shown (S. C.) 1263a. 

Law and Fact 

Where overcharge is trifling, question of usury is for jury (Md.) 498a. ^ 
Where facts are found, usury is question of law (Va.) 1368d. 

Lex Fori 

A note made in Illinois, secured by mortgage usurious under Ohio law, will not be en- 
forced to extent of usury (Ohio) 1158a. 
Law of Michigan does not govern, though part of agreement was made there (Vt.) 1352c. 

Lex Loci 

Usury is controlled by law of place of contract (Conn.) 112d, (D. C.) 131a, (Mo.) 

704a, (N. Y.) 910a. 
Usury is governed by law of place of contract, though interest greater than that allowed 

by charter is charged (N. Y.) 955a. 

Penalty 

is twice total interest (Minn.) 661d. 

abolished by Law of 1880 (N. Y.) 1023c. 

may be recovered, though principal has not been paid (Wis.) 1400a. — by same remedy, 

whether bank or individual banker is organized or acts under state or federal law 

(N. Y.) 1101a. 
cannot be recovered by joint maker of note unless he paid the usurious interest (Kan.) 

323d. — by bUlholders against stockholders (Mass.) 535a. 
only includes discounts (Ala.) 37b. 
is fixed by general statutory law in absence of charter provision (Tenn.) 1298b. 

Recovery 

of principal may be had by bank on a note discounted at usurious rate (Miss.) 670f. 

can be only the specie value of depreciated bills loaned (Miss. ) 676c, 677a. 

of usurious interest can be only in statutory action for penalty (Pa.) 1211a. 

allowed to bona fide holder for value where usurious biU is not void by statute (Ohio) 
1149b. — without demand before suit (Kan.) 327d. — on original valid note, though 
renewals were usurious (Ark.) 59b. — of usurious interest carried into renewals (la.) 
306c. 

not allowed of usury included in judgment (Pa.) 1223d. —of principal and interest, 



INDEX 207 



USURY-Continued 
Eecovery (continued) 

where interest was usurious (Mo.) 710d. —/o joint makers suing jointly (Kan.) 330d. 
— ^o discounting bank against indorser (Mass.) 539a. 
is personal to borrower (Pa.) 1209c. 

Setoff 

of usurious interest not allowed (Mo.) 762b, (Ohio) WZAsS.; contra (Pa.) 1208c. 
need not be specially pleaded (N. J.) 837c. 

State Law 

controls interest and usury (N.Y.) 964e; contra in case of individual bankers (N.Y.) 1029d. 

allows costs to one paying usurious interest (Neb.) 794b. 

known as Safety Fund Act of 1829, applies to discount of draft haying its inception in 

loan or proceeds (N. Y.) ^^Ih; contra to banks organized under General Banking 

Law (N. Y.) 918c. 

Statute 

requiring written agreement binding maker to pay usurious rate in future is not com- 
plied with by indorsing payments of illegal interest on overdue paper (Mass.) 573c. 

Statute of Ldmitations 

of six years applies to indorser's claim to recover usurious excess (Pa.) 1204d. 

runs from first payment (Pa.) 1209c. 

does not apply to suits by bank to recover usurious interest (Mo.) 720e. 

(See Pleading and Proof) 

1¥AIVER 

(See Particular Subjects) 

liVAREHOUSE RECEIPTS 

■delivered for checks, dishonored next day, holder cannot reclaim them from bank receiving 
in good faith for overdrafts (111.) 209d. 

_given as security for draft, title of bank as assignee is temporary (Minn.) 638d. 

held as security, holder may sue in his own name (S. D.) 1283a. 

though fraudulently issued by an agent may be sued on (id.). 

Bank not liable for surrender of warehouse receipts attached to draft in absence of in- 
structions (La.) 450d. 

Demand of payment, not necessary if warehouse is closed on day of maturity (S. D.) 
1283a. 

Refusal to deliver goods on warehouse receipts without asking time to ascertain share 
due, constitutes conversion (Minn.) 638d. 

WABRAllfTIS 

Savings bank may purchase, hold and^sue on city warrants (Mo.) 722a. 

Overdue warrants are non-negotiable and one taking them takes subject to all equities 

(Wyo.) 1431a. 
Acceptance by holder under an arrangement to pay from deposit, constitutes payment (id.) .