Lyon County State Bank v. Schaefer

Citations

• 102 Kan. 868
• 171 P. 1159
• 1918 Kan. LEXIS 161

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Banking — Sight Draft Deposited for Collection — Dishonored—Relation of Bank to Depositor — Parol Evidence. Between the original parties — the nominal drawer of a dishonored sight draft, the party for whose benefit the draft was drawn and deposited in a bank for collection, and the bank which honored the checks of such depositor drawn in anticipation of the draft being collected — parol evidence is competent in an action by the bank against the depositor to show the relationship of the parties and the nature and conditions of the deposit.</p> <p>2. Same — Dishonored Sight Draft — Liability of Depositor Thereof. Ordinarily when a bank gives credit to a depositor on the faith of a sight draft deposited to his account, and such sight draft is dishonored, the bank' may charge back to the depositor the amount of the dishonored draft; and if his bona fide deposit account is insufficient to meet it, and he refuses to reimburse the bank, the latter may recover judgment against him for the sum involved in the transaction.</p>