San Joaquin Valley Bank v. Bours

Citations

• 65 Cal. 247
• 3 P. 864
• 1884 Cal. LEXIS 505

Syllabus

<p>Oobpobatioi?—Bank—Cashieb—Liability fob Loans.—The cashier of a banking corporation, having authority to loan the money of the bank with or without security, is liable for losses arising from loans without security, not entered in the books of the bank, nor reported to the board of trustees, but treated in his reports to the board as cash on hand.</p> <p>Id.—Negligence of Tbustees.—Negligence of the trustees in the discharge of their duties to the bank is no defense to the cashier.</p> <p>Id.—Salaby of Cashieb—Turpi,ran Agreement.—The cashier was first appointed for three months, his salary being fixed by a verbal agreement at S200 per month. At the expiration of that period, he was appointed for one year, and thereafter continued to act for several years under annual appointments. The salary was never fixed by any resolution of the board of trustees, and during a portion of the time after the first three months, he drew the same salary as originally agreed upon, but subsequenely drew 5300 per month. The amounts so drawn were charged to him in the booksmf the bank, and reported to the board. Meld, that these facts were sufficient to establish an implied agreement between him and the board, increasing the salary to 5300 per month.</p>