McAdoo v. Farmers State Bank

Citations

• 106 Kan. 662
• 189 P. 155
• 1920 Kan. LEXIS 625

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Banking — Certification of Check — Equivalent to Acceptance of Bill of Exchange. The certification of a check by the bank on which it is drawn is equivalent to the acceptance of a bill of exchange (Negotiable-instruments Law, § 194) and implies that the check is drawn upon sufficient funds in the bank’s possession, that they have been set apart for its satisfaction, and that they shall be so applied whenever the check is presented for payment.</p> <p>2. Same — Certification of Check — Creates an Original Liability on Part of Bank. The certification of a check by the bank on which it is drawn creates an original liability on the part of the bank, and in an action on the cheek it may not resist the enforcement of its contract of certification in order to make a set-off or defense available to its depositor.</p>