114 Ark. 170 | Ark. | 1914
(after stating the facts).
(2) Where, at the maturity of a debt due á bank from ia depositor, the latter’s deposit is sufficient to meet the obligation, and it has not been specifically appropriated by him, to be held for .a different purpose, the bank has a right to apply 'such deposit to the payment of the debt. 5 Cyc. 550, and cases cited; and case-note to 2 A. & E. Ann. Cas. 206, land ease-note to 19 A. & E. Ann. Cas. 487.
Among the cases cited is that of Cockrill v. Joyce, 62 Ark. 216. In that case, Mr. Justice Riddick, speaking for the court, in discussing the rule, said:
“The law on this subject is well settled, and is thus stated by a recent writer: ‘A banker has a lien on all securities of his debtor in his hands for the general balance of his account, unless such a lien is inconsistent with the actual or presumed intention of the parties. The lien attaches to notes and bills and other business paper which the customer has entrusted to the bank for collection, as well as to his general deposit account.’ ”
“And in the subsequent opinion of Leath v. Lambeth, 14 Ark. 668, the principle laid down in Trammell v. Harrell was overruled, and by a unanimous decision, the views expressed by the Chief Justice in his dissenting opinion in that case were adopted as the law applicable to the subject under discussion.”
Rush deposited $2,500 with the bank as a general deposit, and, therefore, the bank became indebted to him for that amount. "When the note of Bryan and Rush to the bank became due, the bank had a. right to apply the. whole or any part of this deposit toward the payment of the note, Rush not having directed its application to any other indebtedness due by him.
The judgment should be affirmed for another reason. The bank only brought suit against Rush and Bryan for $1,532.58. The testimony showed that the defendants owed the bank the $3,500 note, and the defendant Rush did not deny his indebtedness on that note. He does not claim to have paid any part of it, and, inasmuch as the bank only brought suit for $1,532.58, the balance of the note which was due after it had been credited with the sum of $2,045, which Rush had on general deposit in the bank, it is immaterial whether or not the bank credited the note with the deposit so far as the present suit is concerned.
In short, the bank had a right to sue the defendant for the amount alleged to be due it, and the defendant Rush can not complain that suit was not brought for the whole amount of it. The fact that the bank credited the note with a part of the general deposit of the defendant, Rush, would be no defense to a suit by the bank to recover on the remaining amount alleged to be due the bank on the note, and which the undisputed evidence shows has not been paid.
The judgment will be affirmed.