Metropolitan National Bank v. Jones

Citations

• 137 Ill. 634
• 12 L.R.A. 492

Syllabus

<p>1. Oebtifzing bank check—new undertaking—release of drawer. If the holder of a bank check, instead of demanding its payment obtains its certification by the bank, he will thereby discharge the drawer of the check from all liability, and its presentment on the next business day after its issue and non-payment will not in any manner revive the drawer’s liability. The rule is different when the drawer procures the certification of his check before its delivery to the drawee. In that case the drawer will be liable for non-payment on presentation.</p> <p>2. By certification the bank enters into an absolute undertaking to pay the check when presented, at any time within the time fixed by the Statute of Limitations. The legal effect is the same as though the holder had received payment, and had deposited the money with the bank and taken a certificate of deposit therefor. After certification the bank is thereafter estopped to deny its possession of sufficient funds of the drawer to pay the check.</p> <p>3. If the holder of a check waives his right to immediate payment by expressly asking for, or even by accepting the offer of, a certification by the bank, or even if the drawer has suggested or requested the arrangement, the assent of the payee or holder will acquit the drawer of all liability, and the holder must look to the bank alone for payment.</p> <p>4. On certifying to a check drawn on a bank, it becomes entitled to, and if its business is properly conducted actually does, charge the amount of the check to the account of the drawer at the time of the certification, thus appropriating the drawer’s funds, the same as if the check were paid.</p> <p>5. If the holder, on presenting the check, instead of demanding and receiving payment has it certified and retains it in his possession, he thereby enters into a new and express contract with the bank not within the scope of the legal relations of the parties nor within the presumed intention of the drawer.</p> <p>6. A ban