Carson v. Federal Reserve Bank

While the Federal reserve rules and regulations may provide that a Federal reserve bank will act only as an agent of the bank from which it receives checks for collection, and will assume no liability except for its own negligence and its guaranty of prior indorsements, still, in disputes with non-member banks, or their trustees in bankruptcy, in which a preference in payment is involved, the laws relating to the title to negotiable instruments and the decisions thereon and to preferences in bankruptcy apply, and where the facts in relation to the preference are such as to raise an issue as…