Gibson v. Erie

Citations

• 196 Pa. 7
• 46 A. 102
• 1900 Pa. LEXIS 461

Syllabus

<p>Payment — Municipal bonds — Insolvency of agent of municipalities.</p> <p>Where a bank which is the agent of a city to pay the interest and principal of an issue of city bonds becomes insolvent and it appears that prior to its insolvency an owner of $10,000 of the bonds had deposited them in the bank on special deposit-, and that the bank from time to time had collected the coupons and paid over the proceeds thereof to the owner, and it also appears that prior to the insolvency the city had made a call for the redemption of bonds, and had deposited with the bank $40,000 to meet such call, and the bank had redeemed $31,000 of bonds other than the $10,000 of bonds on special deposit, and it appears that neither the city knew of the special deposit, nor did the owner of the bonds deposited know of the call for redemption, and it further appears that the owner of the bonds after the insolvency of the bank recovered possession of them by replevin, the city cannot in a suit brought on the bonds allege that they had been paid to the bank as the agent of the plaintiff.</p>