Pepperday v. Citizens National Bank

Citations

• 183 Pa. 519
• 38 A. 1030
• 1898 Pa. LEXIS 1073

Syllabus

<p>Banks and banking — Principal and agent — Check.</p> <p>A national bank voluntarily acting- as the agent of one of its depositors in the sale of certain securities sent the securities to a broker in a distant city, who sold them and sent a check to the bank for the proceeds of the sale. The bank observed due diligence in forwarding the check for collection, but before it could reach the bank upon which it was drawn, the broker made an assignment and the cheek proved worthless. When the bank first received the check it credited the amount of it to the depositor’s account, and permitted him to draw it out. Subsequently, upon the check being returned as worthless, the bank charged off from the depositor’s account the amount previously credited to him. Held, that the bank had no right to charge back the credit, and it could not relieve itself, by so doing, from liability for the amount thereof, to the depositor.</p>