American Savings Bank & Trust Co. v. Munson

Citations

• 93 Wash. 78

Syllabus

<p>Appeal — Review—Findings. Upon directly conflicting evidence the findings of the trial court supported by the only disinterested witness, are entitled to great weight, although not conclusive.</p> <p>Payment — Application—Collateral—Rights of Holder. Where insurance policies were held by a bank as collateral to secure the whole indebtedness of the insured, which included a $5,000 note, a forced payment on the policies of $6,000 without direction as to its application, may be applied by the bank to any part of the indebtedness, and therefore does not operate as full payment of the note when not so applied.</p> <p>Bankruptcy — Collateral—Title of Trustee — Adjudication of Priority. The trustee in bankruptcy is vested by law with all title to the assets of the bankrupt, including securities held by the creditor as collateral, especially after being substituted as plaintiff in an action wherein the securities were in suit; hence the bankruptcy court had jurisdiction to determine the validity of the creditor’s claim to the collateral.</p> <p>Bankruptcy — Dividends—Creditor Holding Collateral — Waiver —Construction—Evidence to Explain Writing. Where a bank, holding insurance policies of a bankrupt as collateral to secure an indebtedness, refused to indorse drafts given in settlement of the policies until after parties in interest had signed a letter directing the bank to indorse the drafts to the trustee in bankruptcy without incurring obligation or responsibility for so doing, such letter is sufficiently indefinite to admit of parol evidence that the bankas purpose was to turn over the drafts to the trustee without waiving any of its rights against the parties directing such indorsements, and submitting its claim of priority to the fund for adjudication by the bankruptcy court.</p> <p>Same — Dividends—Adjudication of Priority — Parties—Persons Concluded. An order of the bankruptcy court declaring a dividend and adjudicating the claim of a bank to priority in a fund co