Pennsylvania Co. for Insurances on Lives & Granting Annuities ex rel. Royal Indemnity Co. v. Federal Reserve Bank

KIRKPATRICK, District Judge.

This is an action by a ' drawee bank against a collecting bank to recover money paid to the latter upon a check on which the indorsement of the payee is alleged to have been forged. The case was tried to the Court, jury trial having been waived. The following is a brief summary of the facts:

Financial Independence Founders, Inc. (referred to as “F. I. F.” or “the depositor”), had a bank account with the. Pennsylvania Company, the drawee bank and the plaintiff here. A resolution of the depositor’s board of directors authorized the bank to honor checks only when…