Arnold Investment Co. v. Citizens State Bank

The opinion of the court was delivered by

Mason, J.:

On January 27, 1915, the bank commissioner took charge of the Citizens State Bank of Chautauqua, and shortly thereafter a receiver was appointed. It developed that the bank was insolvent, a condition obviously brought about largely at least through the fraudulent operations of its cashier, F. E. Turner. The Arnold Investment Company had purchased of Turner a number of notes and mortgages which he had forged, paying therefor in all $34,042.75. It brought an action to have the property in the hands of the receiver impressed with a trust for its…