First State Bank v. Peterson

Citations

• 114 Kan. 1
• 216 P. 1093
• 1923 Kan. LEXIS 1

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Mandamus — State Bank Guarantee Fund — Only the Deposit of M yney or its Equivalent is Protected by the State Guarantee Fund. A transaction by which certificates of deposit were issued by a bank based upon notes executed by an insolvent person which purported to be secured by a trust 'deed on land which were made in settlement of an indebtedness of the maker of the note to certain creditors, in whose names the certificates were issued, and where these creditors deposited no money in the bank, and it is shown that there was a lack of good faith in the miaker of the notes and the cashier of the bank in placing and accepting the notes of the maker in the bank as money and as a basis for the certificates of deposit, such notes and trust deed cannot be regarded as a deposit of money within the meaning of the guaranty act nor can the certificates issued be treated as valid liabilities against the guaranty fund.</p>