Citizens' Savings Bank v. Vaughan
Michigan Supreme Court
Appeal from Clinton; Daboll, J. Petition by the Citizens’ Savings Bank of Detroit against Coleman C. Vaughan, John H. Fedewa, and Edwin EL Lyon, receivers of the Michigan Mortgage Company, Limited, for the payment of dividends. From the decree rendered, both parties appeal. On February 6,1894, the Michigan Mortgage Company, Limited, made a voluntary assignment for the benefit of creditors.
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Appeal from Clinton; Daboll, J. Petition by the Citizens’ Savings Bank of Detroit against Coleman C. Vaughan, John H. Fedewa, and Edwin EL Lyon, receivers of the Michigan Mortgage Company, Limited, for the payment of dividends. From the decree rendered, both parties appeal. On February 6,1894, the Michigan Mortgage Company, Limited, made a voluntary assignment for the benefit of creditors. On February 8th a bill of complaint was filed in the circuit court for Clinton county, in chancery, asking for the appointment of receivers to take charge of the mortgage company’s property, and to carry…
1Opinion of the CourtGrant, J.
(after stating the facts). 1. Did the bank have the right to offset the deposit of the mortgage company? If the note was due, the offset was properly allowed. It is conceded that banks have a lien upon deposits for debts due from their depositors. No lien, however, attaches until the maturity of the debt. Bolles, Banks, § 374; Gibbons v. Hecox, 105 Mich. 513. The *159learned counsel for the receivers cite several authorities upon the question of reasonable time to be allowed before a demand note becomes overdue and dishonored. Those cases affect solely the liability of indorsers. They have no…
2Cases cited4 opinions
- Palmer v. PalmerMichigan Supreme Court · 1877
- Gibbons v. HecoxMichigan Supreme Court · 1895
- Peninsular Savings Bank v. HosieMichigan Supreme Court · 1897
- Beardsley v. WebberMichigan Supreme Court · 1895
3Cited by21 opinions
- Gillen v. Wakefield State BankMichigan Supreme Court · 1929
- Sturdivant v. McCorleySupreme Court of Arkansas · 1907
- Hoyt v. Paw Paw Grape Juice Co.Michigan Supreme Court · 1909
- Armstrong v. StearnsMichigan Supreme Court · 1909
- Rhoades v. Malta Vita Pure Food Co.Michigan Supreme Court · 1907
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