Bank of Forest v. Capital Nat. Bank

The Bank of Forest owned notes of the face value of fifteen thousand dollars of the Hiawatha Milling Company which it had acquired by purchase from the Capital National Bank. The Bank of Forest sent the notes at their maturity to the Capital National Bank for collection. The Capital National Bank credited the account of the Bank of Forest with the notes and accrued interest, and then took renewal notes from the Hiawatha Milling Company for the principal of the indebtedness due ninety days thereafter. It then charged the Bank of Forest with the renewal notes and forwarded them by mail to that…