Leach v. Central Trust Co.

Botli the Central Trust Company and the First National Bank were residents of Mason City, Iowa, at the time of the controversy. On the 27th day of March, 1924, the Central Trust Company was in financial distress. Its correspondent bank in Chicago was the Illinois Merchants Trust Company, and against, its account- the Central Trust Company had drawn drafts in excess of the amount of its credit. To meet this situation, the Central Trust Company purchased from the First National Bank of Mason City a. draft drawn by the* First National and payable to the Central Trust Company, for $2,500. This…