Livingstain v. Columbian Banking & Trust Co.

Citations

• 81 S.C. 244

Syllabus

<p>Banks — Depositor.—Trust—Subrogation—Debtor and Creditor. — Where a depositor in consequence of rumors of the insolvency of a bank draws out his deposit, but while it is being paid to him, in response to his inquiries, he is assured by the officers the bank is solvent, and the circumstances surrounding him there bear out this statement, and he in good faith uses the money just paid to him by the bank in buying a draft drawn in his favor by this bank on its correspondent with which it had on deposit certain collateral, to secure its note and drafts, the fund so drawn out is not impressed with a trust in favor of general creditors, but the holder of the draft is entitled to be subrogated to the rights of the drawee in the security held by it.</p> <p>Mr. Justice Woods dissents.</p>