120 Iowa 695 | Iowa | 1903
The defendants’ guaranty was against any ¡loss plaintiff, as school treasurer, might incur by reason of depositing money with the Cass County Bank. If he had the right to so deposit the public money, the instrument is valid. The contention of appellee is that the law forbids such an officer from making a general deposit of public money, even though in his name as such, for the ■reason that thereby the title to the fund passes to the
The distinction between a deposit and a loan is illustrated in that case, for, while demand certificates of deposit on solvent banks were treated as equivalent to cash, time certificates bearing interest were denounced as-private loans of public money, amounting to conversion. In Law's Estate, 144 Pa. 499 (22 Atl. Rep. 831, 14 L. R. A. 103), the difference was pointed out: “deposit is where-a sum of money is left with a banker for safe keeping,, subject to order, and payable, not in the specific money deposited, but in an equal sum. It may or it may not bear-interest, according to the agreement. While the relation between the depositor and his banker is that of debtor and creditor, simply, the transaction cannot, in any proper-sense, be regarded as a loan, unless the money is left, not
A trustee may take the precaution of leaving the trust funds with a bank for preservation, Officer v. Officer, 120 Iowa, 389, and we can see no reason for denying a school treasurer the right to equal protection in placing the moneys of his district within the safe keeping of a solvent bank, also. Under the prior decisions of this court he is, because of the conditions of his bond, practically an insurer of the safety of the public revenues coming into his hands. District Tp. v. Morton, 37 Iowa, 551; District
In the instant case the deposits were made in the name of the treasurer of the district, as such. No time of credit was given. He did not lose control, for at any moment payment might have been exacted. The bank, as appears from the petition, was then supposed to be' reputable, but he took the additional precaution of requiring a guaranty of its solvency and fidelity; thereby providing indemnity against possible loss for the district as well as himself. This he had the right to do, and may recover on such security. — Reversed.