Savings Institution of Williamsport v. Folk

Citations

• 38 Pa. Super. 54
• 1909 Pa. Super. LEXIS 90

Syllabus

<p>Banks and banking — Check—Collection.</p> <p>1. Where a person requests a bank in which he is not a depositor to cash a check drawn on a bank in another city, and he takes the cash, although warned of the bad credit of the maker, and that he will be held liable on his indorsement if the check is returned, and the bank acting , without negligence and in good faith transmits the check through its usual channels for collection, and it is returned unpaid, the bank may recover the amount of the check from the indorser, although it appears that one of the intervening banks taking advantage of the facts revealed by the check, entered up a judgment note against the maker and attached the whole deposit before the check was received by the bank on which it is drawn.</p> <p>2. Although the amount of a check left with a bank for collection has been credited to a depositor’s cash, it may be charged back to him in case it turns out to be worthless, unless the bank has been negligent, or has done something to mislead the depositor, thereby inducing him to act to his own injury.</p>