Hennessy Bros. & Evans Co. v. Memphis Nat. Bank

Citations

• 129 F. 557
• 64 C.C.A. 125
• 1904 U.S. App. LEXIS 4069

Syllabus

<p>1. Banks — Overdrafts—Notes.</p> <p>An overdraft allowed by a bank is a loan due on demand, and hence, where a demand note is given therefor, a suit may be maintained thereon to the same extent as could have been maintained on the overdraft thereby segregated from the account</p> <p>2. Corporations — Acts of Officers — Notes—Execution. '</p> <p>A building corporation opened an office in a city in a foreign state, where it was conducting large building operations, and placed the same in charge of its assistant secretary, who opened a bank account in defendant’s bank in the name of the corporation through which the latter’s financial transactions at that place were accomplished. The account becoming overdrawn, such officer executed demand notes in the name of the corporation to the bank therefor, whereupon the amounts were credited in the corporation’s bankbook, and the book was delivered to the officer, whose accounts were periodically checked up by the corporation, and no objections to the accounts were made. Held, that the corporation was liable on the notes, though no express authority to the officer executing them to do so was shown, and he subsequently became a defaulter to the corporation for a large sum.</p> <p>3. Same — Interest.</p> <p>Where an overdraft was settled by the execution of a note payable on demand, the amount due bore interest from the date of the settlement.</p>