Old Company's Lehigh, Inc. v. Meeker - 294 U.S. 227 (1935)
U.S. Supreme Court
Old Company's Lehigh, Inc. v. Meeker, 294 U.S. 227 (1935)
Old Company's Lehigh, Inc. v. Meeker
Argued January 17, 1935
Decided February 4, 1935
294 U.S. 227
1. The payee of a promissory note sent it for collection to a national bank, named in the note as the place of payment and in which the maker had a deposit account in excess of the note. Two days before maturity, the maker delivered to the bank his check upon the account for the sum due on the note, and received back the note, which was surrendered as paid. Both knew that the bank was then insolvent, and, on the next business day, it was closed by the Comptroller of the Currency. Held that there was no ground for impressing a trust on the assets of the bank in favor of the payee. See Jennings v. U.S. Fidelity & Guaranty Co., ante, p. 294 U. S. 216. P. 294 U. S. 229.
2. The provision of the Uniform Bank Collection Code, adopted in New York, to the effect that, in the event of a bank's insolvency, the claims of those whose paper the bank has collected but for which it has not paid them, shall be preferred, is invalid as applied to a national bank. Jennings v. U.S. Fidelity & Guaranty Co., ante p. 294 U. S. 216. P. 294 U. S. 230.
71 F. 2d 280 affirmed.
Certiorari, 293 U.S. 546, to review the affirmance of a decree dismissing the bill in a suit against an insolvent national bank, its receiver, and the maker of a promissory note, brought by the payee to impress a trust upon its assets.