San Francisco National Bank v. American National Bank of Los Angeles

Citations

• 5 Cal. App. 408

Syllabus

<p>Banks—Custom as to Collection of Paper—-Knowledge Imputed to Depositor—Contract of Agency.—A reasonable custom of all the banks of a place that none of them shall be liable for commercial paper deposited with any one of them for collection elsewhere, until the proceeds thereof in actual money shall come to their possession, must be conclusively deemed known to the depositor, and to be binding upon him as an implied condition of the contract of agency, without reference to his knowledge or want of knowledge of the custom.</p> <p>Id.—Draft Forwarded for Collection—Failure of Collecting Bank —Loss of Drawing Bank.—-Where such a custom existed in the banks of San Francisco and Los Angeles, and a bank of the former city sent a draft to a bank of the latter for collection in Arizona, and the collecting bank in Arizona failed after collection, the loss must fall upon the San Francisco bank, which drew the draft.</p>