Christie v. Sherwood

Citations

• 113 Cal. 526
• 45 P. 820
• 1896 Cal. LEXIS 820

Syllabus

<p>Mortgages—Priority of Record of Subsequent Lien—Notice—Knowledge of Bank Cashier—Agency for Depositor—Presumption.— Where the cashier of a bank negotiated a prior mortgage in favor of a depositor of the bank, and the mortgage was left in his possession, and interest on the loan was received by him and placed to the credit of the mortgagee on the books of the bank, and on his pass-book, the cashier’s knowledge of the prior mortgage will be presumed to continue, under such circumstances, and to affect the bank with knowledge of the prior mortgage, at the date of a subsequent mortgage to the bank on the same property, which was first recorded, in the absence of proof that the previous transaction was not then present to the mind of the cashier.</p> <p>Id.—Agency of Bank—Presumption — Action of Cashier—Negotiation of Loans for Depositors—Charter of Bank.—Where the charter of a bank stated that it was to act as agent in the investment of funds, and to transact any business that may be done by a financial agent, it cannot be presumed that its cashier, in negotiating a loan upon mortgaged security in favor of a depositor, acted as agent of the mortgagee, but it must be presumed that he was acting for the bank where he was in the habit of negotiating loans for it, and the bank, in such case, is bound to know of the mortgage in favor of the depositor.</p> <p>Id.—By-laws of Bank—Customary Action of Cashier — Estoppel of Bank.—Although the by-laws of the bank provided that the concurrence of the president and cashier were required in the negotiation of loans, yet, where it was customary for the cashier to negotiate loans without consulting the president, the bank cannot be permitted to say that it did not negotiate a loan which was negotiated through its cashier alone.</p>