School District No. 62 v. Schramm

On February 18, 1931, the plaintiff school district deposited with the Farmers State Bank of Independence, hereinafter referred to as the insolvent bank, a check for $4,432.78, drawn payable to its order by the county treasurer on the First National Bank of Monmouth, and was given immediate credit on the books of the bank for that amount. At the time it received the deposit the bank was known to its officers to be insolvent and on the second day thereafter it closed its doors for business and the State Superintendent of Banks took over its assets and property for liquidation. During all said…