Plano Manufacturing Co. v. Auld

Citations

• 14 S.D. 512
• 86 N.W. 21
• 1901 S.D. LEXIS 52

Syllabus

<p>1. Where a hank collects a note for a stranger, and intermingles the money received with its own moneys, and afterwards becomes insolvent, a trust attaches to the money in possession of the bank to pay such note, though no trust attaches to the general assets of the bank, since it is presumed that the bank paid out its own money before embezzling the money of others.</p> <p>2. Where the money collected for various strngers by a bank and intermingled with its own funds exceeds the amount of money in possession of the hank, on its becoming insolvent the latter money is to he ratably distributed between the creditors for whom the money was collected.</p> <p>3. A suit by one for whom a bank collects a note and intermingles the proceeds with its own money against the receiver of the hank, after its insolvency, to impress a trust upon money in possession of the bank, and a partial satisfaction from such source does not prevent such creditor from making application as a general creditor to be allowed to participate in the distribution of the general assets of the hank to the extent of the balance due.</p>