Corn Exchange Bank v. Fifth National Bank

On January 7, 1922, the defendant presented a check upon the plaintiff to the New York Clearing House. The check purported to be drawn by Ralph H. Goldberg to the order of Louis S. Frappier. The check was indorsed in blank with the name of the payee and bore the defendant’s guaranty of the indorsement. The check was provisionally paid in the morning of January seventh. Both the signature and the indorsement were forgeries. At the time of presentation both banks had knowledge of the forgery. When the plaintiff ascertained that it had been charged by the Clearing House with the check, it…