Bank of British North America v. Freights

Citations

• 137 F. 534
• 1905 U.S. App. LEXIS 4577
• 70 C.C.A. 118

Syllabus

<p>1. Shipping—Freights—Pledge—Maritime Lien.</p> <p>Where a charterer procured advances from a bank on the credit of the freights of particular vessels, assigning the charters and insurance policies covering the freights, etc., the bank had a maritime lien on such freights, which it was entitled to follow into whosesoever hands they might go.</p> <p>2. Same—Termination of Lien.</p> <p>Where a charterer had been in the habit of procuring advances from a bank on the credit of the freight of particular vessels, and had collected such freights as agent for the bank, deposited them to his individual bank account, and thereafter applied only the balance in excess of the advances to his own use, the bank’s maritime lien on such freight did not terminate on the charterer’s depositing and mingling the same with his own funds.</p> <p>3. Same—Enforcement—Remedies.</p> <p>Where a bank had a maritime lien on the freights of certain vessels for advances, it was entitled to enforce the same by an action in admiralty in rem, regardless of the fact that it also had a lien enforceable in equity.</p> <p>4. Same—Trust Fund—Appropriation by Agent—Deposits—Application-Payment op Check.</p> <p>Where a charterer collected freight as the agent of a bank which held a maritime lien thereon, and deposited such freight to his individual bank account, but, before accounting for such advances, depleted the account by a check drawn against it for other purposes—not, however, shown to have been delivered until after he deposited $2,500 of his own money to the credit of the account—such deposit should be applied to the payment of the check pro tanto in exoneration of the trust deposit.</p>