Hough Ave. Savings & Banking Co. v. Andersson

Citations

• 78 Ohio St. (N.S.) 341

Syllabus

<p>Savings bank — By-laivs require presentation of deposit book and written order — Part of contract, when — Payment upon forged order — Bank liable to owner of deposit, when.</p> <p>T. By-laws of a savings bank, which require the presentation of the deposit book, or due notice to the bank in case of the loss of the book, as conditions precedent to payment to the depositor, or upon his written order, are reasonable -conditions and become a part of the contract between the bank and the depositor, when brought to the notice of the latter.</p> <p>2. When in such case the banlj makes payment on presentation of the deposit book or pass-book, not to the depositor in person, but upon what purports to be a written order by him and which turns out to be a forgery, the bank is at least bound to act in good faith and to exercise reasonable care with the view to avoid payment to a person who is not lawfully entitled to receive payment; and if in such case it does not so act in good faith and exercise reasonable care, it will be liable to pay again to the rightful owner of the deposit.</p>