City of Centralia v. United States Nat. Bank

Citations

• 221 F. 755
• 1915 U.S. Dist. LEXIS 1622

Syllabus

<p>1. Banks and Banking <§=288—National Banks—Insolvency—Application of Payment.</p> <p>Where, at the time an insolvent national bank closed, a city, which had designated such bank as the authorized city depositary, had therein a special deposit, and the hank had also collected for the city a draft in excess of the amount of the bond required from the bank as such depositary, the proceeds of which draft it was sought to recover as a trust fund, the city had a right to apply the amount received on the bond on the special deposit, and to apply the balance on the other account.</p> <p>LEd. Note.-—For other cases, see Banks and Banking, Cent. Dig. §§ 1105-ill 0, 1114-1121, 1123-1125; Dec. Dig. <3=288.]</p> <p>2. Banks and Banking <§=130—Collections—Relation Between Bank and Customer.</p> <p>Under Pierce’s Code Wash. 1912, § 77—681, relative to the designation of city depositaries, and section 77—6S3, providing that, before any such designation shall entitle the treasurer to make deposits in the designated bank, such bank shall file a surety bond in the maximum amount of deposits designated by the treasurer to be carried in the bank, or in lieu thereof deposit bonds or warrants, where a bank designated as a city depositary collected a draft for the city in an amount exceeding the amount of its bond as depositary, neither the acquiescence of the city treasurer in the bank’s retention of the amount collected as a deposit, nor the payment of interest thereon by the bank, gave the hank title to the money in excess of the amount of the bond, or changed the trust fund into a mere debt, as under the statute title could not pass to the bank without an additional bond.</p> <p>[Ed. Note.--For other cases, see Banks and Banking, Cent. Dig. §§ 3 lb-325, 327; Dee. Dig. <§=130.]</p> <p>3. Banks and Banking <§=166—Collections—Relation Between Bank and Customer—Presumptions.</p> <p>A city delivered a draft for collection to the bank designated as the city depositary under Pierce’s Code