Reichert v. United Savings Bank

The United Savings Bank of Tecumseh became insolvent and was closed by the Michigan banking commissioner. A receiver has been appointed. Five school districts were depositors in the insolvent bank. Each of these school districts has intervened in the receivership proceedings and seeks to have its deposit in the bank adjudicated a trust fund to be given preference in payment as against claims of general creditors. In each instance the school treasurer made the deposit in the name of the school district, and the money- when received by the bank was known to be school funds. Each of these five…