McCloskey v. North Penn Bank

Citations

• 270 Pa. 284
• 113 A. 371
• 1921 Pa. LEXIS 376

Syllabus

<p>Banks aná1 banking—Corporation as depositor—Recognition of corporation as distinct entity—Set-off.</p> <p>Where a bank accepts the deposit of a corporation, and recognizes the company as a distinct entity, and continues to treat it as such until the bank’s failure, a trust company which Succeeds to the assets of the bank cannot claim, as against the receiver of the corporation, that the corporation was the successor of the business of a partnership having an account in the bank, that such partnership owed the bank sums in excess of the deposit of the corporation, that a partner who owned a majority interest of the stock of the corporation had orally promised on behalf the corporation to pay all the obligations of the partnership, and that consequently the partnership debts to the bank should be set-off against the corporation’s deposit in the distribution of the bank’s assets.</p>