American State Bank v. Wilson

Citations

• 110 Kan. 520
• 204 P. 709
• 1922 Kan. LEXIS 89

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Banks and Banking- — Deposits Protected by State Guaranty Fund. A deposit which will be protected by the state guaranty fund may be accomplished by giving the bank credit in another bank in exchange for a certificate of deposit.</p> <p>2, Same — Certain Certificates of Deposit Not Claims Against the State Guaranty Fund. ■ It is held that in the present case certificates of deposit issued by a bank which has since been closed are not claims against the guaranty fund because of other circumstances tending to show that the transaction which they evidenced was not a deposit within the meaning of the statute' and because the bank paid a bonus of ten per cent for the money it received.</p> <p>3. Same — Certificate of Deposit Bearing Higher Bate of Interest than the Maximum Allowed Not Protected by the Guaranty Fund. A certificate of deposit bearing a higher rate of interest- than the maximum allowed by the bank commissioner is not within the protection of the guaranty fund. And the payment by the bank of a bonus to obtain a deposit bearing such maximum is equivalent to contracting for a higher rate.</p> <p>4. Same — Certificate of Deposit with Personal Indorsement Not Protected by State Guaranty Fund. Where the payee of a certificate of deposit requires the president of the bank to endorse it personally before agreeing to take it, such certificate is “otherwise secured” within the meaning of that term as used in the statute, and is not entitled to the protection of the guaranty fund, notwithstanding such security proves fruitless.</p> <p>5. Same — Certificate of Deposit — Right of An Innocent Purchaser Thereof to Participate in the Guaranty Fund. The evidence is held to show an issuance of a series of certificates of deposit to the payee and their sale by him to a bank, rather than an issuance of the certificates to the bank through negotiations carried on by him as an agent or broker. Where a certificate of deposit is issued under such