Smith v. City Hall Bank

Citations

• 22 Ohio C.C. Dec. 342

Syllabus

<p>BANKS AND BANKING-FACTORS.</p> <p>1. Burden is on Owners to Prove Proceeds of Sales Made by Factors were Deposited in Bank on Particular DAy.</p> <p>In an action for recovery of the proceeds of sales made by factors and deposited in a bank, the burden is on the owners of the property sold to prove that the proceeds from the sales in question were deposited on that particular day and remained in possession of the bank..</p> <p>2. Bank not Held to Know Ownership of Deposits by Factors on Particular Day.</p> <p>Although a bank may be deemed to have known that the greater portion of the deposits made by the factors was derived from sales made for their customers, it cannot be held to have had knowledge of the ownership of the deposits made on a particular day or to be liable for the payment in good faith of checks drawn against such deposits.</p> <p>3. Checks Drawn by Factors, not Accepted by Bank, Have no Preference.</p> <p>Checks drawn by factors and held by their customers, but not accepted by a bank, have no preference against the fund on deposit over the claims of general creditors.</p>