American Exchange National Bank v. Gregg

Citations

• 138 Ill. 596
• 28 N.E. 839
• 1891 Ill. LEXIS 1168

Syllabus

<p>1. Bank check—what amounts to payment. Where a bank accepts a check drawn on it, stamps the same as paid, and. enters the amount thereof to the credit of the holder presenting it, this will be a payment of the check, although the bank may fail to charge the account of the drawer on its books with the amount. After such payment the bank will have no authority to charge back the amount of' the check to the depositor, or his account, without his consent.</p> <p>2. Same—acceptance by bank as a deposit—correctness of books of the bank. Where a check of a third person is offered to the bank on which it is drawn, as a deposit, and is received as such, if the check is genuine, in the absence of fraud, the bank will become the debtor of the depositor, and the title to the deposit will pass to the bank, and the transaction will be conclusive and executed as between the depositor and the bank; and this will not be dependent upon the correctness of the books of the bank.</p> <p>3. Bank—refusal to pay overdraft—error in books. A bank may refuse payment of a check of a depositor which will overdraw the amount of the funds of the drawer on deposit, although the bank book may show on its face a sufficient sum, for want of the entry therein of a check drawn thereon a few days before. The right to demand payment of a depositor’s check depends upon the actual state of his bank account at the time of presentment and demand, rather than upon what the bank books may then show.</p>