Legniti v. Mechanics & Metals National Bank
New York Court of Appeals
Appeal from a judgment, entered July 24, 1919, upon an order of the Appellate Division of the Supreme Court in the first judicial department, reversing a judgment in favor of defendants entered upon a dismissal of the complaint by the court on trial at Special Term and directing judgment in favor of plaintiff and against defendant, appellant, upon new findings. The nature of the action and the facts, so far as material, are stated in the opinion.
1Opinion of the CourtCrane, J.
It has long been an established custom among banks and financial institutions to sell credit usually represented by draft or check. Thus a bank having a credit with a correspondent in. a foreign country will sell its draft or check, drawn upon such correspondent, to a purchaser who desires to make a foreign payment. The draft is not the credit but represents the credit, or in other words, it is a notification to the correspondent or foreign representative to pay the money as directed. The draft is a direction to pay. It is not, itself, money or credit. It is simply used as such. The money…
2Cases cited7 opinions
- Bank of British North America v. CooperSupreme Court of the United States · 1890
- Strohmeyer & Arpe Co. v. Guaranty Trust Co.Appellate Division of the Supreme Court of the State of New York · 1916
- Katcher v. American Express Co.Supreme Court of New Jersey · 1920
- Musco v. United Surety Co.Appellate Division of the Supreme Court of the State of New York · 1909
- Atlantic Communication Co. v. ZimmermannAppellate Division of the Supreme Court of the State of New York · 1918
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3Cited by48 opinions
- Gravenhorst v. . ZimmermanNew York Court of Appeals · 1923
- Gellert v. Bank of California, National Ass'nOregon Supreme Court · 1923
- Snehoda v. First National Bank in WichitaSupreme Court of Kansas · 1924
- American Express Co. v. Cosmopolitan Trust Co.Massachusetts Supreme Judicial Court · 1921
- Leach v. Battle Creek Savings BankSupreme Court of Iowa · 1926
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