285 Mass. 187 | Mass. | 1934
The plaintiff bank seeks to recover as a holder for value of a check for $830 dated July 13, 1931, drawn by the defendant on the Atlantic National Bank and payable to the order of McReavey & Company who indorsed the check “For deposit only to the credit of McReavey & Co.” and on the day of its date delivered it to the plaintiff bank where that company had a checking account. With the check was delivered a deposit slip furnished by the plaintiff which listed this check and several others deposited at the same time. The deposit slip bore the printed statement: “Depositors are Hereby Notified that Credits Entered in Their Accounts are Conditional and Not Final Until Items Deposited Have Been Collected.” On the same day the defendant ordered the drawee, the Atlantic National Bank, to stop payment on the check. On the following day the drawee bank returned to the plaintiff the check, with a slip marked “Payment stopped,” and the plaintiff notified McReavey & Co., Inc. “We charge your account and return for reason marked,” the reason being “Payment stopped.” The check for $830 here in question was given by the defendant to McReavey & Co., Inc. in exchange for two checks of that company also dated July 13, 1931, and aggregating $830. One of these checks which was for $50 was paid by the drawee, another bank. The other check which was for $780 and drawn on the plaintiff bank was not paid by it for the stated reason “Not sufficient funds.” The trial judge in the Municipal Court of the City of Boston found for the defendant, refused to give certain rulings requested by the plaintiff and reported his action thereon to the Appellate Division where the report was dismissed. The plaintiff appealed to this court.
The plaintiff’s declaration alleges that its depositor, the payee named in the check, “before delivery of said check to the plaintiff, for a valuable consideration, endorsed said
After the check here in question was deposited with the plaintiff, but on the same day, there was entered in the account of the depositor on the books of the bank a credit for the amount of the check. At the opening of business on that day the books of the bank showed that the account of the depositor was overdrawn; during that day checks drawn by the depositor were presented at the bank and paid, and at the close of the day the books showed no overdraft of the depositor’s account because of the inclusion as a credit of the amount of the check. In these circumstances the plaintiff contends that the judge should have found that the bank furnished value for the check and became its beneficial as well as its legal owner. But in our opinion the judge was not bound to make such finding and there was evidence which warranted a contrary finding.
A bank and its customer may by agreement define and limit the authority of the bank, and its title, in its dealings with a negotiable instrument deposited by the customer.
In the present case the check was indorsed by the payee, the customer, “For deposit only to the credit” of the customer. It was delivered to the bank with other checks, all listed on a deposit slip furnished by the bank which bore the words: “Depositors are Hereby Notified that Credits Entered in Their Accounts are Conditional and Not Final
Order dismissing report affirmed.