Colorado Nat. Bank v. Western Grain Co.

GARDNER, I.

The appellant insists it was a bona fide purchaser for value of the two drafts, the proceeds of which are here involved, and this is the sole question pre? sented on this appeal.

‘‘A bank does not become a bona fide purchaser for value and without notice of a negotiable paper by simply discounting it for one not its debtor at the time and placing the amount to the credit of the holder by way of deposit. In such circumstance the act of discounting and of crediting only effects to establish 'the relation of debtor and creditor betw-een the depositor and the bank; but, if the amount…