Dishonored Complete Collection Ps4

[Urbano Bozman]

1When paper is indorsed without restriction by a depositor,and is at once passed to his credit by the bank to which hedelivers it, he becomes the creditor of the bank; the bank becomesowner of the paper, and, in making the collection, is not the agentfor the depositor. P. 271 U. S.492.

2. Upon the deposit of paper unrestrictedly indorsed, and creditof the amount to the depositor's account, the bank becomes theowner of the paper, notwithstanding a custom or agreement to chargethe paper back to the depositor in the event of dishonor. P.271 U. S.493.

3. A depositor who has thus surrendered his rights in paperwhich is later dishonored, and whose account, under his agreementwith the depositary bank, has been charged with the amountpreviously credited, has no relation with a bank to which thedepositary sent the paper for collection upon the basis of which hemay recover from the second bank for its want of diligence in thatregard. P. 271 U. S. 494.

Error to a judgment of the circuit court of appeals whichaffirmed a judgment in favor of the Federal Reserve Bank,defendant, rendered by the district court (300 F. 573) in an actionbrought by the City of Douglas to recover the amount of a check,alleged to have been dishonored, and recharged to the plaintiff,because of defendant's negligence in failing to collect it.

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