Covey v. Cannon
Supreme Court of Arkansas
Appeal from Benton Chancery Court; T. H. Humphreys, Chancellor; STATEMENT BY THE COURT. This suit'is by appellees to charge certain funds in the hands of the receiver of the Bank of Siloam with a trust and to have same applied to the payment of their claims in preference to the claims of general creditors; and from the decree directing it done the receiver appealed. The Bank of Siloam closed its doors August 6, 1910, and a receiver was on that day appointed.
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Appeal from Benton Chancery Court; T. H. Humphreys, Chancellor; STATEMENT BY THE COURT. This suit'is by appellees to charge certain funds in the hands of the receiver of the Bank of Siloam with a trust and to have same applied to the payment of their claims in preference to the claims of general creditors; and from the decree directing it done the receiver appealed. The Bank of Siloam closed its doors August 6, 1910, and a receiver was on that day appointed. On February 4, 1909, Ollie Stout, as guardian, loaned the bank $9,000,, taking its notes, bearing 8 per cent; interest, payable…
1Opinion of the Court
Kirby, J.,
(after stating the facts). If the moneys of these claimants had been placed on deposit in the bank in the usual way, they would have been general deposits and established the relation of debtor and creditor between the bank and the depositors; the bank having the right to mix the moneys with its other funds and use it in its own business. Zane on Banks, § 130; Steelman v. Atchley, 98 Ark. 294; Carroll County Bank v. Rhodes, 69 Ark. 43. If it was placed in the bank for safekeeping, and not to be checked out by the depositor, or under an agreement that the bank should act as bailee or…
2Cases cited7 opinions
- Commercial Bank of Pa. v. ArmstrongSupreme Court of the United States · 1893
- Board of Com'rs v. StrawnCourt of Appeals for the Sixth Circuit · 1907
- Woodhouse v. CrandallIllinois Supreme Court · 1902
- Warren v. NixSupreme Court of Arkansas · 1911
- Carroll County Bank v. RhodesSupreme Court of Arkansas · 1900
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- Gillen v. Wakefield State BankMichigan Supreme Court · 1929
- Darragh Co. v. GoodmanSupreme Court of Arkansas · 1916
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