Gulf States Lumber Co. v. Citizens First National Bank

1. Ordinarily, when cheeks or drafts are indorsed and deposited in a bank, the presumption is that they are deposited for collection only, with the effect that title thereto remains in the depositor until the check or draft is actually collected. A credit thus made in anticipation of collection will be deemed to be merely provisional, and the bank may cancel the credit and charge back the paper to the cash account. The fact that the customer is privileged to draw against a fund thus deposited, and that he has been permitted actually to do so, lias, however, been held to indicate a mutual…