Planters' Mercantile Co. v. Armour Packing Co. of Louisiana, Ltd.

Citations

• 109 Miss. 470
• 69 So. 293

Syllabus

<p>1. Banks and Banking. Checks. Collection. Appeal and Error. Review. Determination.</p> <p>The bank to which a check is sent for collection is the agent of the holder thereof for the purpose of making the collection, and the payment of the check to such bank absolves the drawer from further liability thereon.</p> <p>2. Same.</p> <p>If a check is sent for collection to the bank on wliich it is drawn and' such bank charges the amount thereof on its books to the drawer, he is discharged from further liability thereon, provided (generally, though not always) he has sufficient funds thén on deposit with the bank to pay the check and the bank itself is solvent.</p> <p>3. Same.</p> <p>This result follows, notwithstanding such bank may fail to pay over the money to .the person from whom the check is received for collection.</p> <p>4. Same.</p> <p>The bank on which a check is drawn is not a proper agent to which it may be sent for collection, and so to do is negligence.</p> <p>5. Same.</p> <p>When a check is received for collection by the bank on which it is drawn, and the drawer then has sufficient money on deposit with it with which to pay the check, he will be discharged from further liability thereon, although the bank fails to pay the amount of the check to the person from whom it was received, notwithstanding the bank may be then insolvent, provided the bank was then open for business and- it does not appear that in event the check had been presented at its counter by another collecting agent, it would not have been paid.</p> <p>6. Same.</p> <p>Where a case in the supreme court is reversed on appeal final judgment will not be entered there, but the case will be remanded, where it may be that appellee will be able to show on another trial that no harm resulted to appellant hy reason of a check having been forwarded for collection to the bank on which it was drawn.</p>