First National Bank of Monmouth v. Strang

Citations

• 138 Ill. 347
• 27 N.E. 903

Syllabus

<p>1. Bank—reorganization—liability of new bank. Where a bank, on the termination of its charter, and after its successor was organized under the National Banking law, turned over to the latter United States bonds which it held on deposit, and the latter collected and paid to the depositor various installments of interest thereon, it was held, that such payment of interest was evidence of the new bank’s possession of the bonds, and that it was liable in trover for their value, on refusal to deliver them on demand.</p> <p>2. Where a bank received bonds on deposit, and collected and paid .the interest thereon up to the expiration of its charter, and a bank of the same name, with the same officers, directors and stockholders, was organized, taking all the assets and property of the former bank, including the bonds on deposit, and for some time thereafter collected and paid over the interest on such bonds, it was held, that the new bank was not a bona fide purchaser of the bonds without notice of the depositor’s rights, and that the receipt for the bonds given by the cashier ■of the first bank, and his admissions in respect to the deposit and ownership of the bonds, were evidence against the new bank, upon the principle of privity of title, interest and possession between the two corporations in respect to the bonds.</p> <p>3. Choses in action—transfer with notice of equities—declarations of former possessor. The principle that the declarations and admissions of a former .owner or possessor of property against his interest, made during the continuance of his interest or possession, are evidence against those subsequently obtaining possession of title from him, is .applicable equally to personal property and to choses in action, as to real estate.</p> <p>i. Where the possessor of chattels or choses in action transfers them ■to another, such other takes them charged with all rights and equities /which could have been maintained against the former possessor, pro¡vided it a