Fourth National Bank v. Wilson

Citations

• 110 Kan. 380
• 204 P. 715
• 1922 Kan. LEXIS 57

Syllabus

<p>syllabus by the court.</p> <p>1. State Bank Guaranty Law — Deposits Guaranteed — Money or Its Equivalent Must Be Placed in or at the Command of the Bank to Be Protected. Under the section of the bank guaranty law which provides that all deposits not otherwise secured shall be guaranteed (Gen. Stat. 1915, §600), it is necessary, in order to create a deposit, that money or the equivalent of money shall in intention and effect be placed in or at the command of the bank, under circumstances which do not transgress specific limitations of the law.</p> <p>2. Same — Certain Certificates of Deposit Issued in Land Deal — Land Deal not a Bank Transaction — No Guaranteed Deposits Created. The cashier of a bank, with others, contracted to purchase a ranch in New Mexico. In part payment of the price, the cashier issued the bank’s draft for $25,000, for which the bank received no consideration. The cashier then purchased the interests of his co-contractors and, in part payment of the price, gave them four certificates of deposit in his bank for $25,000 each. No deposit was made, neither the cashier nor the payees of the certificates had any funds on deposit, and the bank received no consideration for issuance of the certificates. The cashier, and an associate interested with him, planned to place title to the ranch, and title to ranches which they owned individually, in a corporation which would issue and sell bonds in the sum of $500,000, secured by trust deed. From proceeds of the sale of bonds the associate would be enabled to take up undesirable paper bearing his indorsement, to the amount of $129,000, which the bank held. The transaction considered, and held, it was not inaugurated and carried through for benefit of the bank, and was not a bank transaction at all.</p> <p>3. Same — Debit Slips Placed in Cash Drawer by Cashier — -No Deposit Created. When the draft and when the certificates of deposit were issued, the cashier placed debit slips in the bank’s cash drawer indi