Exchange Bank v. Thrower
Supreme Court of Georgia
Complaint. Before Judge Reid. City court of Atlanta. November 1,1902. Prince was manager for an insurance company, for Georgia and other States. Brinsfield was his cashier. Two drafts, payable to “ James T. Prince, manager,” were indorsed by Brinsfield, thus: “ James T. Prince, manager, by Kelly H. Brinsfield, cashier,” and were cashed by Thrower, who deposited them with the Exchange Bank to his credit.
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Complaint. Before Judge Reid. City court of Atlanta. November 1,1902. Prince was manager for an insurance company, for Georgia and other States. Brinsfield was his cashier. Two drafts, payable to “ James T. Prince, manager,” were indorsed by Brinsfield, thus: “ James T. Prince, manager, by Kelly H. Brinsfield, cashier,” and were cashed by Thrower, who deposited them with the Exchange Bank to his credit. The drafts were paid; and Prince having denied the authority of the cashier to indorse, the bank refunded to him the proceeds, on his agreement to indemnify it in case of its failure to…
1Opinion of the CourtLamar, J.
Authority to borrow money is among the most dangerous powers which a principal can confer upon an agent. Whoever lends to one claiming the right to make or indorse negotiable paper in the name of another does so in the face of all.the danger *435signals of business. He.need not lend or discount until assured beyond doubt that the principal has in fact appointed an agent who by the stroke of a pen may wipe out his present fortune and bind his future earnings. The very nature of the act is a warning ; and if the lender parts with his money, he does so at his own peril. If the power was not in fact…
2Cases cited2 opinions
- Doubleday v. . KressNew York Court of Appeals · 1872
- Dobbins v. Etowah Manufacturing, Co.Supreme Court of Georgia · 1886
3Cited by28 opinions
- Standard Steam Specialty Co. v. Corn Exchange BankNew York Court of Appeals · 1917
- Callaway v. Hamilton Nat. Bank of WashingtonCourt of Appeals for the D.C. Circuit · 1952
- Lamb v. General Associates, Inc.Washington Supreme Court · 1962
- Garmany v. LawtonSupreme Court of Georgia · 1906
- Williams v. DuganMassachusetts Supreme Judicial Court · 1914
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