(Download) "Mcdonald v. American Bank Etc. Co. Et Al." by Supreme Court of Montana * eBook PDF Kindle ePub Free
eBook details
- Title: Mcdonald v. American Bank Etc. Co. Et Al.
- Author : Supreme Court of Montana
- Release Date : January 28, 1927
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 69 KB
Description
Banks and Banking ? Insolvency ? Preferred Claims ? Tracing Trust Funds ? Presumption ? Interest. Banks and Banking ? Insolvency ? Preferred Claims ? What Plaintiff must Show. 1. One seeking to establish a preference claim to funds in an insolvent bank on the ground that such funds were the proceeds of a note left with the bank prior to its insolvency for collection must be able to show that the transaction created the relation of principal and agent (not creditor and debtor) between himself and the bank, thus making the bank a trustee of the amount collected for the benefit of plaintiff; that by the transaction the assets of the bank were augmented, and that he is able to trace the trust funds into the possession of the bank. Same ? Establishment of Preferred Claim ? Appeal ? Testimony in Conflict ? Finding of Court Controlling. 2. Where the testimony of the parties to an action to establish a preferred claim on funds held by the receiver of an insolvent bank was in substantial conflict on the question whether the proceeds of a - Page 234 note left with the bank for collection should not be placed on deposit with the bank, as contended by plaintiff, or should be so placed until plaintiff decided how to invest it, as claimed by defendant, the finding of the court in favor of plaintiff will not be disturbed on appeal. Same ? Collection of Promissory Note ? Trust Fund ? Presumption That Money Collected was Retained by Bank, When. 3. Where a promissory note was left with a bank for collection prior to its insolvency, and the collection was made, it will be presumed in an action by the owner to establish a preference claim for the amount of the collection on the theory that it constituted a trust fund that, so long as a balance at least equal to the trust fund remains in the bank, the specific money collected was retained by it and constituted an integral part of the banks money which passed into the hands of the receiver. Same ? Preferred Claim Established ? Creditor Entitled to Interest Payable Out of General Assets of Bank. 4. In an action such as the above, the creditor, on establishing his preferred claim, is entitled to interest thereon from the date of the closing of the bank, under section 7725, Revised Codes of 1921, providing that interest is payable on moneys received to the use of another and detained from him, interest being payable out of the general assets of the bank, where the receiver was justified in rejecting the claim as one proper to be passed upon by the courts. Same ? Preferred Claim and Interest Limited to What Amount ? Other Preferred Claims ? Prorating. 5. A preference claim of the nature of the above is limited to the amount of funds represented by the lowest balance on hand in the bank between the time it collected the note in question and its closing and the interest to which the claimant is entitled under the above rule (par. 4) must be computed on that amount only; and where other preferred claims are established on such fund necessitating a prorating thereof among the several claimants, the interest is computable upon each claimants portion of the fund.
 "Mcdonald v. American Bank Etc. Co. Et Al." by Supreme Court of Montana * eBook PDF Kindle ePub Free){kind=link}