Califf v. First National Bank

Citations

• 37 Pa. Super. 412
• 1908 Pa. Super. LEXIS 296

Syllabus

<p>Banks and banking — Checks—Payment of checks — Forgery—Settlement of book.</p> <p>The contract between a bank and its customers is to pay the customer’s checks or bills to the person or persons designated by the customer, and to none other, and if a check or bill is payable to order, the banker has only authority to pay it to the payee or to another person who becomes the holder by genuine, or duly authorized indorsement.</p> <p>- When a bank pays a check made payable to order and the indorsement is forged or unauthorized, it is the same as if payment had not been made and the amount due to the depositor is not thereby affected.</p> <p>On the settlement of his bank book and the return of his checks the depositor is not bound to examine the latter to see that the indorsements are correct. He may assume that the bank has ascertained their genuineness before paying. A bank book settled, balanced up and checks returned to the depositor, will of course become an account stated if not promptly examined and errors of amount pointed out for correction, but the depositor is under no obligation to follow up and ascertain the genuineness of the indorsements that carry the title after the check has left his hands.</p> <p>■ The duty of a depositor whose check has been paid upon an unauthorized indorsement is to give notice with reasonable promptness. All that he need do in any case is to give notice promptly according to the circumstances and usages of the business.</p> <p>Principal and agent — Letter of attorney — Scope of agent’s authority— Indorsing check.</p> <p>Letters of attorney are strictly interpreted and the authority is never extended beyond that which is given in terms, or that which is necessary and proper for carrying the authority so given into full effect.</p> <p>A power of attorney to lease and manage a farm confers no authority on the attorney to indorse a check which has no connection with the business of the farm.</p>