First Nat. Bank of Rigby v. First Utah Nat. Bank of Ogden

(after stating the facts as above). Under controlling authority in federal courts upon the deposit of paper unrestrictedly indorsed and credit of the amount to the depositor’s account, the bank becomes the owner of the paper, notwithstanding a custom or agreement to charge such paper back to the depositor in event of dishonor; such agreement evidenced by following indorsement on the deposit or credit slip: “Outside checks credited subject to payment.” City of Douglas v. Federal Reserve Bank of Dallas, 271 U. S. 489, 46 S. Ct. 554, 70 L. Ed. 1051, decided by Supreme Court of United States June…