Bank v. Foreman

Citations

• 138 Pa. 474
• 21 A. 20
• 1891 Pa. LEXIS 1126

Syllabus

<p>[To be reported.]</p> <p>1. When the maker of a negotiable note, payable at a bank, has at the date of maturity a general deposit to his credit in the bank, sufficient in amount to discharge the note and not specifically appropriated to any other purpose, the bank is bound to charge the note against such deposit, in relief of the maker’s indors'ers: Commercial N. Bank v. Henninger, 105 Pa. 496.</p> <p>2. A notice from the maker to the bank forbidding the application of Ms deposit to the note, will not justify the bank in neglecting so to charge it at maturity, and will not prevent such neglect from having the effect of discharging the indorsers, if, notwithstanding the notice, the money remained to the credit of the maker, without a specific appropriation.</p> <p>8. Such a notice, followed by an agreement on the part of the bank with the depositor, before maturity of the note, not to charge it against the deposit, will not convert the deposit into a special one, and render the ruling in Bank v. Speight, 47 N. Y. 668, quoted in Commercial N. Bank v. Henninger, supra, applicable, the money still remaining in the depositor’s control and subject to Ms cheek</p>