Bank of Seneca v. First Natl. Bank
Missouri Court of Appeals
Appeal-from Jasper Circuit Court. — -Ho». Hugh Dabbs, Judge. (1) A person making advances on the faith of a letter of credit which authorizes the bearer to draw for a limited amount only, is bound to make the necessary inquiries to learn that such amount has not been exhausted; and if, without making such inquiry he advances money on the faith of a check drawn according to the terms of the letter, he can not recover where the person in whose favor it is written has already…
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Appeal-from Jasper Circuit Court. — -Ho». Hugh Dabbs, Judge. (1) A person making advances on the faith of a letter of credit which authorizes the bearer to draw for a limited amount only, is bound to make the necessary inquiries to learn that such amount has not been exhausted; and if, without making such inquiry he advances money on the faith of a check drawn according to the terms of the letter, he can not recover where the person in whose favor it is written has already drawn for the full amount specified. Or, to state it differently, the burden rests upon the person making such advances…
1Opinion of the CourtEllison, J.
The defendant bank issued to H. G. Tánger and delivered to his agent,. George W. Hawk, the following letter of credit:
(“Letter of Credit.)
“First National Bank, Capital Stock $100,000.
‘ ‘ Carthage Mo., July 8, 1901.
“To Whom it May Concern-.
“We will pay checks signed H. G. Tánger by the bearer, Geo. W. Hawk, to the amount of one thousand dollars, any checks paid indorse on back of this letter. Mr. Hawk’s signature is below.
“Geo. W. Hawk. V. A. Wallace, Vice Pres.”
Said letter was indorsed on the back as follows:
“7-17 — 10 checks..............$500.25
7-25— 1 check, J. G. Johnson... 235.00 Seneca,…
2Cases cited6 opinions
- Schimmelpennich v. BayardSupreme Court of the United States · 1828
- Boyce & Henry v. EdwardsSupreme Court of the United States · 1830
- Bleeker v. HydeU.S. Circuit Court for the District of Michigan · 1843
- Pollock v. HelmMississippi Supreme Court · 1876
- Ranger v. SargentTexas Supreme Court · 1872
1 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Easton Tire Co. v. Farmers & Merchants BankMissouri Court of Appeals · 1982
- American National Bank v. PillmanMissouri Court of Appeals · 1913