Century Indemnity Co. v. Bank of Gowanda

Memorandum: We are still of the opinion that the decision in the case of Raymond Concrete Pile Co. v. Federation Bank (288 N. Y. 452) is not controlling in the instant case. In that ease the opinion states: “As a general rule * * a banker who knows that a fund on deposit with him is a trust fund cannot appropriate that fund for his private benefit *- * *. But one who relies upon the application of those principles must always affirmatively establish that the bank had notice or knowledge not only that the moneys on deposit were for a trust purpose but also that they were diverted from that…