Spiroplos v. Scandinavian-American Bank

Citations

• 116 Wash. 491
• 199 P. 997
• 16 A.L.R. 181
• 1921 Wash. LEXIS 965

Syllabus

<p>Banks and Banking (26)—General or Special Deposits—Preferred Claims. The purchase of a draft from a bank would not constitute the money or its equivalent paid therefor a special deposit, since the transaction merely creates the relation of debtor and creditor, unless it be shown that in some way the net cash assets of the bank are increased thereby; and such assets were not increased by the deposit, since it created a corresponding liability.</p> <p>Same (6)—Insolvency—Deposits After Insolvency—Fraud. Where a draft by plaintiff from defendant bank on a Greek bank was handled by the drawing of two drafts by the local bank, one on the New York correspondent of the Greek bank, and one on its own New York correspondent, to meet the draft on the Greek bank, which its New York correspondent refused to accept and pay because of notice of the subsequent insolvency of the defendant bank, the transaction between plaintiff and defendant bank would not amount to a special deposit so as to constitute plaintiff’s claim a preferred one; and it cannot be said that a fraud was worked on the depositor from the fact that the bank was insolvent on the day the deposit was received.</p>