City Bank v. Hamilton Nat. Bank

The Hamilton National Bank, plaintiff in the court below, discounted two promissory notes signed by Arthur Berman and purporting to have been signed by Bernice Berman, his wife, and issued and delivered to Arthur Berman its cashier’s checks payable to the order of himself and his wife for the amount of the loans. These checks, indorsed with the names of the payees, were delivered by Berman to City Bank for deposit to his account, and the amounts of the cheeks — indorsed by City Bank “Prior Endorsements Guaranteed” — were collected by City ’Bank from Hamilton Bank through the clearing house.…