First State Bank of Bristow v. O'Bannon

O’Bannon forwarded to the First State Bank of Bristow two drafts with bill of lading attached, totaling $1,027.70, drawn upon Gibbs for collection and remittance. These drafts were received by the bank, and in due course presented to Gibbs for payment. Gibbs paid the same to the collecting bank by checks drawn upon his account in the collecting bank — his account was adequate to pay the same. His account in due course was charged with the amount of the drafts, and a corresponding credit given the bank’s cashier’s checks outstanding, and the bank issued its cashier’s check to O’Bannon &…