Hellenbeck v. Leimert - 295 U.S. 116 (1935)
U.S. Supreme Court
Hellenbeck v. Leimert, 295 U.S. 116 (1935)
Hellenbeck v. Leimert
Argued April 5, 1935
Decided April 29, 1935
295 U.S. 116
1. Overdraft checks, drawn on a bank affiliated with a clearinghouse, were presented to the drawee, through a clearinghouse settlement, by a member bank which had received them from an indorser bank for collection. The drawee failed to comply with a clearinghouse rule requiring it to notify the member bank within a specified time in case of nonpayment, but returned the checks later, for reimbursement, to the indorser bank, which was neither a member nor
an affiliate of the clearinghouse. Held that the checks were paid, and the indorser not liable. P. 295 U. S. 122.
2. An overdraft check deposited by an indorser bank with a collecting bank was credited by the collector to the indorser's account, charged against the drawee's account, and sent to the drawee. The drawee accepted the check and gave no notice of its dishonor to the collecting bank, but later returned it to the indorser bank for reimbursement. Held that the check had been paid, and the indorser was not liable. P. 295 U. S. 122.
3. Semble that § 102, par. 1 of the Illinois Negotiable Instruments Law refers to the time for giving notice of dishonor, not to the time within which the drawee of a check dishonored may return it after tentative clearinghouse settlement, nor to advice concerning overdrafts. P. 295 U. S. 123.
72 F.2d 480 reversed.
Certiorari, 294 U.S. 699, to review the affirmance of a judgment recovered in an action on checks.