Schwehm v. Chelten Trust Co.

Citations

• 257 Pa. 76
• 101 A. 93
• 1917 Pa. LEXIS 683

Syllabus

<p>Corporations — Banks and banking — Loan society — President— Powers — Endorsement of check — Misappropriation of proceeds— Liability of drawee bank — Suit against drawee — Judgment for defendant n. o. v.</p> <p>1. Where the president of a loan society is constituted by its by-laws ,as the chief executive officer and general and active manager of the business of the company, he is fully authorized to accept money paid to the company, whether in cash or in the form of a cheek payable to the order of the company and where he misappropriates funds so paid to him the loss must be that of the corporation.</p> <p>2. In an action against a bank by a depositor to recover the amount of a check which plaintiff had drawn upon the bank to the .order of a loan society, it appeared that the president of the loan society, who was its chief executive officer, endorsed the check and misappropriated the proceeds. Held, the proceeds of the check were received by the loan society in accordance with the terms of the check, and in the action against the bank judgment should have been entered for the defendant n. o. v.</p> <p>Banks and banking — President of bank — Power to endorse — Bills or notes.</p> <p>3. Even where his authority comes only from its directors, the president of a bank may endorse bills or notes payable to it. It would seem that he has implied power to endorse and transfer its negotiable paper.</p>