Staples v. Huron Nat. Bank

Citations

• 8 S.D. 222
• 66 N.W. 314
• 1896 S.D. LEXIS 17

Syllabus

<p>1. A bank, to which real property has been conveyed by an officer of the ■ bank, in his individual capacity, for its full value, incumbered by a mortgage executed by such bank officer in his individual capacity and to which such bank is in no manner a party, is not liable to the mortgagee for a loss sustained by him, because of worthless securities received by him in exchange for a discharge of such mortgage, where such securities were the individual property of such bank officers, and such discharge was obtained by such bank officers in their individual capacities, and not as officers óf the bank.</p> <p>2. Neither will the fact that such bank officers, at the time of such sale, received from the bank the full cash value of such property, render the bank liable for such loss by the mortgagee; the bank taking the property with full covenants of warranty, and having the agreement of the two parties interested in the property at the time of the sale that they would save the bank harmloss against such mortgage.</p> <p>(Syllabus by the Court.</p>