Phillips v. Yates Center National Bank

Citations

• 98 Kan. 383
• 158 P. 23
• 1916 Kan. LEXIS 92

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Public Funds — Placed in Ordinary Deposit Account in Bank — No “Special Deposit” — No Priority of Payment. Where deposits in a ■ bank are made from time to time to the credit of the depositor as a public officer, entry thereof being made in a pass book, and checks are drawn and paid in the ordinary course of business, monthly statements being rendered, testimony that it was the purpose of the depositor that the funds should be kept separate and should be always there so that they could be checked out at any time affords no basis for regarding the amount on hand as a special deposit.</p> <p>2. Same. The claim of an officer for funds deposited by him in a bank which has become insolvent is entitled to no priority of payment merely because of their public character.</p> <p>3. Same — Deposited in Violation of Law — Trust Fund. Where public funds are deposited in violation of law in a bank which has knowledge of the facts, the title does not pass, and a trust results which in case of insolvency may be enforceable against the receiver.</p> <p>4. Same — Deposited in Bank Lawfully — Title Passes — No Trust. In the absence of a statute either expressly allowing or expressly forbidding it, the act of the clerk of the district court in placing the funds in his official custody on general deposit in a bank, to his credit as such officer, is not illegal, and therefore the title passes and no trust results.</p>