Saylors v. State Bank

Citations

• 99 Kan. 515

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Banking — Honoring Overdrafts — Not. Ultra Vires. It is not ultra vires for a bank to agree to honor overdraft checks for a regular customer.</p> <p>2. Same — Contract to Honor Overdrafts — Not Ultra Vires. When an agreement has been effected whereby certain profits and advantages have been procured by a banking corporation, a defense that the contract was ultra vires will not be countenanced to permit the bank to avoid its undertaking pursuant to such contract.</p> <p>3. Same — Stock Buyer — Agreement of Bank to Pay Checks — Agreement Enforceable. The president of a bank made an agreement with a stock buyer whereby the latter was to purchase live stock and ship them to market and pay for them by drawing checks on the bank. The bank agreed to pay these checks, and was to receive three dollars per carload of the live stock thus bought and shipped, and eight per cent interest on the money used in this business. The returns from the shipments were made to the bank, and the stock buyer’s account was credited from time to time with the net proceeds. Held, that the bank can not avoid its liability to pay a check given in payment of cattle purchased by the stock buyer pursuant to such agreement.</p> <p>4. Same — Agreement to Honor Overdrafts — Good Consideration. The consideration for such an agreement between the bank and its customer considered and held sufficient to support the contract.</p>