Noble v. Doughten

Citations

• 72 Kan. 336
• 83 P. 1048
• 1905 Kan. LEXIS 350

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Banks and Banking — Title to Check Indorsed and Deposited. If the payee of a check drawn on a bank in a city other than that of his residence indorse it and deposit it in his home bank in the usual and ordinary manner, and without any agreement or understanding in reference to the transaction other than such as the law implies, the check becomes the property of the indorsee.</p> <p>2. -Dishonor of Such Check — Ownership Not Affected. The fact that the indorsee may have the right to charge the check to the depositor’s account, if it should be dishonored after due diligence has been exercised to collect it, does not affect the character of the transfer or render the bank any the less the owner of the check.</p> <p>3. -- Indorsement to Correspondent — Guaranty—Deposit— Title. If a bank holding title to a check under the circumstances stated indorse it to the order of its correspondent in the city where the drawee bank is located, with a guaranty of the previous indorsement, and forward it with a deposit slip attached for credit as a deposit to such correspondent, who accepts it on the terms proposed by the indorsement and the deposit slip and undertakes to collect it, the title to the check, no further facts appearing, vests in the second indorsee.</p> <p>4. -Acceptance by Correspondent of Drawee’s Check in Lieu of Cash. If a bank holding title to a check under the circumstances stated in the last paragraph presents it for payment on the day of its receipt to the drawee, who then has funds of the drawer on deposit to meet it and who is ready to pay it in money, but, instead of taking cash, surrenders the check for the drawee’s own check on another bank, it must use the utmost diligence to collect the second cheek or bear any loss which may be occasioned by the delay in case the drawer should become insolvent.</p> <p>5. -Insolvency of First Drawee — Second Presentment— Discharge of Parties. Under circumstances of the character indicat