Bogue v. Taylor

The facts are not in dispute. Two checks were issued by the Meckling independent consolidated school district, payable to the plaintiff and drawn upon the Bank of Meckling in payment of school warrants held by the plaintiff. The checks were deposited by the payee for collection and credit with the Parker State Bank, Parker, S. D. In due course the checks were transmitted to the Federal Reserve Bank of Minneapolis. On receipt of the checks the latter bank forwarded them direct to the drawee bank accompanied by a letter of instruction that the items were for “collection and return.” The drawee…