Fourth National Bank v. City National Bank

Citations

• 68 Ill. 398

Syllabus

<p>1. Bank check—right of holder to sue on. The holder of a check on a bank, who has paid value for it, is entitled to so much of the funds of the drawer on deposit as the check calls for, and when presented for payment, the bank on whom it is drawn will become the holder of the drawer’s money, to the use of the holder, and will be bound to account to him for the amount, unless other equities have intervened.</p> <p>3. Same—right of bank to appropriate deposit on debt due itself. A bank check operates as an equitable, if not a legal, assignment, or transfer, to the holder of the check, of so much of the money of the drawer as he has on deposit in the bank at the time of its presentation for payment, subject to his draft, as may be necessary to pay it.</p> <p>3. The rights of the holder of the check and the bank, will be fixed from the time the check is presented for payment, and the bank will have no right subsequently to pay other checks, or other demands, either to itself or to others, which may afterwards be presented, or shall after-wards accrue. And if the bank can not retain the drawer’s money to pay a debt accruing in its favor after presentation of such check, it can not retain it, as against the check holder, under the claim of a lien for a debt not due.</p> <p>4. Banker’s lien—nature and extent of. In the very nature of such transactions, a banker’s lien can not extend to the money left on deposit with him, according to the custom and usages of banks. Such lien is confined to securities and valuables which may be in the banker’s custody as collaterals. The credit must be given on the faith of the securities, or valuables, either in possession or expectancy-.</p> <p>5. Bank—right of equitable set-off against deposit. Where a party procured his own note to be discounted at a bank, and the money received was placed in the bank as a deposit to his credit, and he afterwards became insolvent before the maturity of his note, it was held, that the bank might be en