Rose Check Cashing Service, Inc. v. Chemical Bank New York Trust Co.

This case was submitted for decision on an agreed statement of facts. It is concerned with the following instrument (plaintiff’s Exhibit I):

The plaintiff is a holder in due course of the above instrument. The defendant bank issued the instrument to one Witzelberger. This is a comparatively new type of instrument issued by banks for a nominal fee. After obtaining the instrument Witzelberger cashed it with the plaintiff after indorsing it.

At the time that Witzelberger obtained this instrument from the defendant bank, he gave the bank his personal check drawn on a special account in another…