Rankin v. City National Bank - 208 U.S. 541 (1908)
U.S. Supreme Court
Rankin v. City National Bank, 208 U.S. 541 (1908)
Rankin v. City National Bank
Argued November 12, 13, 1907
Decided February 24, 1908
208 U.S. 541
In a transaction between two banks, the president of one gave his personal note to the other, accompanied by an agreement of his bank, signed by himself as president, that the proceeds of the note should be placed to the credit of his bank by, and remain with, the discounting bank until the note was paid; while there were certain transfers of checks between him and his own bank, the record did not show that the maker of the note personally received the proceeds thereof, and no contention was made that the agreement was illegal. Held that:
Under the circumstances of this case, the discounting bank was entitled to hold the proceeds of the note, as represented by the credit given on its books therefor, as collateral security for the payment of the note and to charge the note against such credit, and relieve itself from further responsibility therefor.
The receiver of a bank stands in no better position than the bank stood as a going concern.
144 F. 587 affirmed.
The facts are stated in the opinion.