Novak v. Greater New York Savings Bank

The appellant has brought this action to recover some $12,600 plus accrued interest, which he had on deposit in his savings account with the respondent bank. It is alleged that respondent has refused to honor his demand and that $12,000 in cash was paid to a person other than appellant, who presented his stolen passbook. Respondent defends upon the ground that section 10 of its by-laws, rules and regulations provides that it shall be discharged from liability upon payment to persons presenting the bank book. Additionally, it is alleged that the payment of $12,000 was in good faith and in the…