National Bank v. Bonsor

Citations

• 38 Pa. Super. 275
• 1909 Pa. Super. LEXIS 125

Syllabus

<p>Banks and banking — Checks—Failure of consideration — Holder for value.</p> <p>1. In an action by a bank against the maker of a check who had stopped its payment, where the evidence shows a failure of consideration as between the maker and the payee who had deposited the check with the plaintiff bank, and also shows that the bank was not a holder for value to the full amount of the check, it is proper for the court to refuse to charge, by binding instructions, that the plaintiff is entitled to recover the full amount of the check.</p> <p>2. When a bank makes advances or gives new credit on the faith of a check or other commercial paper which a customer has deposited for collection, and for which he has received credit in his account, it becomes entitled to a lien upon such paper and proceeds thereof for the amount thus advanced.</p> <p>3. Where a bank accepts a check for collection, and gives a depositor credit for it, and the latter draws against Ms account to an amount wMch reduces the apparent balance below the amount of the check, the bank has a lien for the amount of the overdraft, and to that amount is a holder for value, and may recover to such extent against the maker of the check. This right is established by the Act of May 16, 1901, P. L. 194, sec. 27, relating to negotiable instruments.</p>