Clark v. Toronto Bank

Citations

• 72 Kan. 1
• 82 P. 582
• 1905 Kan. LEXIS 298

Syllabus

<p>SYLLABUS BY THE COÜKT.</p> <p>1. Banks and Banking — Draft—Fund Not Assigned. Ordinarily the issuance of a bank draft does not, prior to its acceptance, operate as an assignment of a part of the fund against which it is drawn.</p> <p>2. -Draft Issued by an Insolvent Bank — Rights of Holder. Where a bank fails and passes into the hands of a receiver after it has issued a draft upon a correspondent bank in which it has funds on deposit, and the drawee has notice of the receivership before the draft is presented for payment, the title to such deposit passes to the receiver, and the holder of the draft, in the absence of any special circumstances, is entitled to no priority over other creditors of the failed bank.</p>