Ball v. German Bank

Citations

• 187 F. 750
• 109 C.C.A. 498
• 1911 U.S. App. LEXIS 4223

Syllabus

<p>1. Banks and Banking (§ 28G*) — National Banks — Transfers Affected by Insolvency.</p> <p>It was a custom between defendant bank and a national bank in the same town for each to cash checks drawn on the other during the day’s business, and after banking hours to take an account of such payments, and for the bank against which the balance was'found to give a duebill for the amount, which was taken up on the next day by cash or a draft, . and the checks were then surrendered for debit against the drawers. Two drafts given defendant in settlement of such balances on successive days having been dishonored, defendant’s president called on the cashier of the national bank after banking hours on Saturday, and requested collateral to cover the amount, which was given, amounting to $5,500. The national bank was then insolvent, and did not again open its doors, and that it could not do so was then known to the cashier. Held that, whatever other remedy it might, have had, defendant by demanding collateral elected to affirm the relation of debtor and creditor between the two-banks ; that the transfer of the collateral by the cashier of the national bank was at least in contemplation of an act of insolvency, and with a view of preferring defendant as a creditor, within the meaning of Rev. St. § 5242 (U. S. Comp. St. 1901, p. 3517), and was void under said section, regardless of whether or not defendant knew the condition of the other bank.</p> <p>[Ed. Note. — For other cases, see Banks and Banking, Cent. Dig. §§ 1111- * 1113; Dec. Dig. § 286.*]</p> <p>2. Banks and Banking (§ 2S7*) — National Banks — Actions by Receivers.</p> <p>Where a national bank, after or in contemplation of an act of insolvency, made a transfer of notes to a creditor as a preference, which was void under Rev. Rt. § 5242 (U. S. Comp. St. 1991, p. 3517), the receiver may at his election maintain an action at law against the creditor for their conversion.</p> <p>TEd. Note. — For other cases, see Banks and B