Farmers & Merchants State Bank v. Quasebarth

Citations

• 104 Kan. 422
• 179 P. 300
• 1919 Kan. LEXIS 283

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Promissory Note — When a Bank Becomes a Bona Fide Holder for Value. The purchase of -a note by a bank and the deposit of the proceeds therein makes the bank a debtor of the depositor, but not a purchaser for value, but if the amount of the deposit is drawn out before maturity and before the bank acquires knowledge of the infirmities in the paper, it becomes entitled to the protection accorded a bona fide purchaser for value.</p> <p>2. Same. The fact that such depositor subsequently makes other deposits in the bank after the proceeds of the discounted note have been checked out, does not take from the bank its status as bona fide holder for value.</p> <p>3. Same. A bank purchased a note from a depositor and gave him credit in the bank for the proceeds. Including the proceeds of the note the depositor had then a credit of $1,550. Shortly afterwards, and before maturity of the note or knowledge by the bank of any infirmities in it, the depositor checked out of the bank the sum of $1,811.62. Held, that the bank then became a purchaser for value.</p>