Peoples State Bank v. Burlington State Bank

The opinion of the court was delivered by

Burch, J.:

The action was one by a bank to establish a preferred claim against the receiver of a failed bank. Plaintiff recovered, and the receiver appeals.

The Peoples State Bank of Le Roy had funds on deposit with the Peoples National Bank of Burlington. The Le Roy bank desired to transfer funds from Burlington National to Commerce Trust Company of Kansas City, Mo., which was the Be Roy bank’s Kansas City correspondent. To effect the transfer, the Be Roy bank drew its draft on Burlington National for $4,000, and sent the draft to Commerce Trust for…