Pittsburg v. First National Bank of Sheraden

Citations

• 230 Pa. 176
• 79 A. 406
• 1911 Pa. LEXIS 585

Syllabus

<p>Boroughs — Treasurer—Borough, treasurer■ — Public moneys — Warrants ■ — Bank accounts — Overdraft.</p> <p>1. Where a borough treasurer opens an account in a bank in his own name as treasurer, and deposits public moneys therein, the account is the account of the treasurer, and not that of the borough. Where after the treasurer has opened such an account he causes words to be stamped on the back of borough warrants, to the effect that such warrants will be paid when properly indorsed at the bank named, and signs the indorsement with his own name as treasurer, such indorsement is the equivalent of a check drawn directly by thé treasurer upon the bank.</p> <p>2. Where the treasurer by reason of his also being the cashier of the bank, makes an overdraft on his account as treasurer, the overdraft is in the nature of a loan, not to the borough, but to the treasurer; and the bank, in the absence of any authority in the treasurer to borrow money for the borough, and in the absence of any ratification by the borough of the treasurer’s act, cannot hold the borough liable for the overdraft.</p> <p>3. Where a borough treasurer who is also the cashier of a bank opens an account in his bank in his own name as treasurer, and stamps upon the borough warrants his orders for payment directed to his own bank, and subsequently makes an overdraft on his account as treasurer, and thereafter the treasurer presents the warrants in question to the borough auditors passing upon his accounts, no appeal being taken from their report, and the warrants are secured by the bank from the auditors for temporary use in checking up the treasurer’s account, the bank has no right to retain possession of the warrants, or to use them as a means of compelling the borough to pay the amount of the treasurer’s overdraft.</p>