Leach v. Farmers & Merchants State Bank

The claim for preference is based upon the payment by K. A. Mathers to the Washington bank of two notes made payable to the Washington bank, but held at the time of payment by the Davenport bank. The notes were for $1,100 and $750, respectively, and were paid by Mathers to the Washington bank, April 26, 1924. At the time of making the payment, Mathers was told that the notes were in Davenport. The Washington bank was then keeping a very active account with the Davenport bank. The Mathers payments were credited by the Washington bank to that account. The books of the Washington bank showed the…