Best v. State Bank of Bruce

On or before March 6, 1923, the First National Bank of Bruce had a paid-up capital and surplus of $30,000. One M. Nygaard was the vice-president and principal managing officer of the bank. He was authorized by the board of directors to make loans not exceeding $2,000 and to rediscount the paper of the bank to the federal reserve bank. Prior to March 6, 1923, he had rediscounted some paper purporting to be the paper of the First National Bank of Bruce to the Bankers Finance Corporation, predecessor of the Wisconsin Mortgage and Securities Company. Such paper was made payable to the First…