People's Gin Co. v. Canal Bank & Trust Co.

On December 8, 1931, the appellant (People's Gin Company) sent to the Bank of Moorhead, a branch of the Grenada Bank, a check drawn by the Sunflower Cotton Oil Company, payable to the appellant, on which was indorsed: "For deposit only in Bank of Moorhead." This check was received by the Bank of Moorhead, credited subject to payment, and forwarded for collection to the Canal Bank Trust Company of New Orleans, La., one of the appellees, which received it on December 9, 1931.

Prior to December 8, 1931, the appellant, by its secretary, signed and delivered to the Bank of Moorhead a signature card…