Reichert v. Farmers State Savings Bank

Petitioner appeals from an order denying its petition to direct the receiver of defendant bank to transfer back to petitioner certain promissory notes and charge them to petitioner’s commercial deposit account. The matter was heard on petition and answer.

In the course of its business, petitioner took short-time promissory notes from its customers. It indorsed to the order of, and discounted them at, defendant bank. The proceeds, at face, were credited to petitioner’s checking account. It was the practice of the bank to charge the notes back to such account if they were not paid by the makers…