119 Kan. 198 | Kan. | 1925
The opinion of the court was delivered by
The First National Bank of Ottawa brought this action to recover from the Farmers State Bank of Quenemo, and its receiver, R. T. Kreipe, $1,000, and to have the indebtedness declared to be a preferred claim against the assets of the defendant bank. Upon the evidence the trial court decided that the plaintiff had a valid claim against the defendant bank and its receiver, but that it was not entitled to a preference in the assets of that bank now in the hands of the receiver. Plaintiff appeals.
On February 16, 1922, after banking hours, W. J. Hutchison, the assistant cashier of the defendant bank, visited the plaintiff bank and stated that his bank was a little low on cash, and he desired to secure $1,000 in currency. The plaintiff bank gave Hutchison that
“10. At the close of business on February 16, 1922, the cash on hand in the plaintiff bank was a little over $1,100, and on February 17, and at the time the bank passed into the hands of the receiver, the cash on hand was a little more than $1,000; less than one-half of these amounts was in currency. No part of the currency received by the defendant bank from the plaintiff bank could be traced into the assets in the bank at the time the receiver took possession of the same.”
“11. There was no agreement or understanding between the parties that the cashier’s check given to the plaintiff bank should be satisfied out of any particular funds or that any particular fund or funds should be assigned to the plaintiff bank, but only that the check was to be paid by the defendant bank on presentation in the regular course of business, the representatives of the two banks understanding that by the time the check should have been sent to the plaintiff’s correspondent in Kansas City and afterwards presented to the defendant bank, the latter bank would be in funds to take care of the same.”
In its conclusions the court said it is the view of the court that the transaction between the two banks was in effect a loan by the plaintiff to the defendant bank for the period which would be required for the cashier’s check to be passed through the bank of the plaintiff’s correspondent in Kansas City, and presented in the regular course of business for payment out of the general funds of the defendant bank at Quenemo, and for that reason and on the facts found, the plaintiff is not entitled to a preferred claim against the assets of said defendant bank now in the hands of the receiver.
In its appeal the plaintiff insists that the evidence did not justify findings Nos. 10 and 11, but, on the contrary, established a trust relationship which entitled plaintiff to be treated as a preferred creditor.
Did a fiduciary relation arise from the transaction? We think the trial court correctly held it to be an accommodation loan and that it did not have a trust character entitling the plaintiff to payment out of the assets of the bank in preference to other general creditors. The currency was given to the defendant bank because the latter was low in cash, with the understanding that the money was to be used in carrying on its regular bank business. The evidence given for the accommodation was a cashier’s check, which both parties understood would be transmitted to a Kansas City correspondent and could not be passed through the clearing house and presented for payment in less than four or five days. This
The judgment is affirmed.