Sprague v. Farmers' National Bank

Citations

• 63 Kan. 12
• 64 P. 967
• 1901 Kan. LEXIS 80

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Banks and Banking — Collections—Notice to Owner of Non-payment. It is the duty of a bank receiving commercial paper for collection before it is due to present it to the maker for payment at maturity, and, if payment be refused, immediately to notify the holder. In a case where the duty to give such notice was neglected, and the bank, after the maturity of the note and while holding it for collection, took from the maker a chattel mortgage to itself, and assisted another creditor in obtaining a mortgage, covering all the debtor’s property, by reason of which the note was rendered uncollectable, it was error for the court to take from the jury the question of the bank’s liability for the amount of the note.</p>