Goodyear Tire & Rubber Co. v. Hanover State Bank

Citations

• 109 Kan. 772
• 204 P. 992
• 21 A.L.R. 677
• 1921 Kan. LEXIS 364

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Trust Funds — Proceeds of Check — ■Insolvency of Bank — Preferred Claim. Where a bank holding a claim for collection receives in payment thereof a check upon itself drawn by the debtor against a sufficient deposit, there being enough cash on hand to meet it, charges the amount to him and attempts to remit it to the creditor by cashier’s check, but passes into the control, of a receiver before such cashier’s check in due course of business is presented for payment, having at all times had cash on hand in excess of the amount thereof, the creditor is entitled to recover the amount of his claim from the assets of .the receivership as a trust fund in preference to general creditors.</p>