Kesl v. Hanover State Bank

Citations

• 109 Kan. 776
• 204 P. 994
• 1921 Kan. LEXIS 365

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Trust Funds — Proceeds of Cheek Sent to Bank for Collection — Insolvency of Bank — Preferred Clai/m. Where a check of one having a checking account large enough to cover it is sent by mail for collection to the bank on which it is drawn, which has at thfe time of its receipt and at all times thereafter sufficient cash to meet it, and the bank charges it to the drawer, and at once mails to the owners a draft for the amount, payment of which is prevented by the bank commissioner taking charge of the bank issuing it before it could be presented in due course of business, the owners of the check have a preferred claim for its amount against the assets of the suspended bank.</p> <p>2. Same In an action brought by the payees of the check in the c'rcumstances set out in the foregoing paragraph it is held that no ground for the reversal of a judgment for the plaintiffs is shown by the manner in which they deposited the check in a bank through which it reached the drawee.</p>