Hazlett v. Commercial N. Bank

Citations

• 132 Pa. 118
• 19 A. 55
• 1890 Pa. LEXIS 777

Syllabus

<p>1. When a depositor transmits to a bank for credit his own cheek or draft upon a third bank, the barde receiving it becomes the depositor’s agent for its collection, and the relation is not affected by the fact that the amount of the draft is at once credited to the depositor as cash.</p> <p>2. If, in such case, the bank transmits the draft directly to the third bank on which it is drawn, and receives in return thereof the draft of the latter on a fourth bank, the transaction is irregular; for, as a collecting agent, the receiving bank has no right to accept anything from the bank upon which the draft is drawn but the money.</p> <p>3. But if, on the receipt of such draft from the drawee bank, it is not paid on presentation, and the depositor, being informed of the facts, does not repudiate the draft so received, but directs it to be held for a few days, stating that the drawee bank is all right, and its draft will be paid in a day or two, he condones the irregularity and must himself bear the resulting loss.</p>