United States Nat. Bank v. Amalgamated Sugar Co.

Citations

• 179 F. 718
• 1910 U.S. App. LEXIS 5428

Syllabus

<p>Bills and Notes (§ 330*) — Checks—-Indorsement—Rights of Indorsee.</p> <p>Where defendant drew a check to its own order, and indorsed it without restriction for credit to an insolvent bank, in which defendant had an account, and the indorsee indorsed the check for collection and credit to plaintiff bank, its correspondent, which credited the check, and paid out the amount thereof on drafts of the insolvent bank before notice of the. bank’s failure, when defendant stopped payment of the check by the drawee hank, plaintiff, having no knowledge that the insolvent bank was a mere collecting agent, was entitled to assume that it had title to the check which it could transfer, and hence was entitled to recover thereon.</p> <p>[Ed. Note. — For other cases, see Bills and Notes, Dec. Dig. § 330.*]</p>