German N. Bank v. Farmers' D. N. Bank

Citations

• 118 Pa. 294
• 12 A. 303
• 1888 Pa. LEXIS 393

Syllabus

<p>The Germania Savings Bank drew and delivered to the Penn Bank a check on the German National Bank. The G. N. B. was a member of the clearing house; the P. B. was not, but was represented therein by The Farmers’ Dep. National Bank. For the collection of said check through the clearing house, the P. B. indorsed it, “ For deposit, Clearing House, May 26, 1884,” and deposited it with the F. D. N. B., which at once sent it into the clearing house, where it received credit for the amount. The check was then sent in the usual course of business by the clearing house to the G. N. B., the drawee, where it was filed and journaled. The P. B. suspended the same day before 12 m. The G. S. B., the drawer, at once notified the G. N. B., the drawee, to stop payment. The G. N. B. at once canceled the journal entry, and returned the check to the F. D. N. B. before 1 p. m., and, having guaranteed the file-cut, was paid the amount thereof by the F. D. N. B., which received the check and charged it back to the P. B. Subsequently the F. D. N. B. brought suit against the G. N. B. to recover the amount of the check so returned to it: Held,</p> <p>1. That the G. S. B., the drawer, had the right to notify the G. N. B., the drawee, to stop payment of said cheek, and giving such notice, the F. 1). N. B., the holder, having received it for collection only, had no right of action against the G. N. B., the drawee. .</p> <p>2. That the receipt, filing and journaling of the cheek by the G. N. B., the drawee, though perhaps constituting a conditional acceptance, was subject to the right, under the rules of the clearing house binding upon its members, to revoke such acceptance and return the check to the F. D. N. B. before Ip.i.</p>