Scott v. W. H. McIntyre Co.

Citations

• 93 Kan. 508
• 144 P. 1002
• 1914 Kan. LEXIS 462

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Banking — Draft Delivered, to Bank — Immediate Credit Given Depositor — Bank Becomes Owner of Draft and Its Proceeds. Where a draft with a bill of lading attached is delivered to the hank in whose favor it is drawn, which forwards it to a correspondent for collection and gives immediate credit to the depositor, the proceeds while in the hands of the correspondent bank are to be regarded as belonging to the payee named in the draft, as against a creditor of the depositor who attempts to reach them by garnishment, after the account, as increased by the deposit, has been overdrawn, and this notwithstanding the practice of the first-named bank to charge its depositor with the interest on such items from the time of giving credit until the proceeds were actually received, and to charge back their amount in the event of nonpayment, and notwithstanding that a serial number was placed on said draft by the original bank in sending it out for collection, and that a witness testified to a general practice of bankers to place such numbers upon items received for collection but not upon those accepted as cash.</p>