Benjamin v. Welda State Bank

Citations

• 98 Kan. 361
• 158 P. 65
• 1916 Kan. LEXIS 88

Syllabus

<p>SYLLABUS BY THE. COURT.</p> <p>1. Money — Fraudulently Obtained — Can Not be Recovered from Innocent Third Party. Money which has been obtained by fraudulent means, can not be reclaimed after its payment to one receiving it without notice of the fraud, although it is applied upon a preexisting debt without the surrender of any security.</p> <p>2. Sight Draft — Obtained by Fraud — Proceeds Can Not be Followed into Hands of Innocent Holder. Where one who has fraudulently obtained a check or draft delivers it to his creditor, although without endorsement, to be applied upon an existing debt, its proceeds when, collected and so applied are subject to the same rule.</p> <p>3. Same — Draft Fraudulently Obtained — Notice. The circumstances held not such as to charge a bank with notice that a draft delivered to it had been obtained by fraud.</p>