A Treatise On the Law of Banks And Banking, By the Editorial Staff of the Michie Company

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256, 11 N. E. 504; O'Connor V. Mechanics' Bank, 124 N. Y. 324, 26 N. E. 816; Shaw -J. Baunnan, 34 O. St.
25: Nonotuck Silk Co. v. Flanders, 87 Wis. 237, 58 N. W. 383.
Trust funds may often be properly- put into a bank as a deposit, that be- ing in such instances a prudent dis- position of such funds by the trustee; but the bank becomes simply a bor- rower, and the trustee a depositor, like any other depositor, and in case the bank does become insolvent the trustee has no preference over other c
...reditors. He and those beneficially interested must take simply a distrib- utive share of the assets. Hawkins v.
Cleveland, etc., R. Co., 32 C. C. A. 198, 89 Fed. 266.
Where a general deposit of a trust fund is rightfully made in bank as part of the trust estate, the relation of debtor and creditor is created between the bank and the trustees, and the lat- ter are not entitled to be preferred over other creditors on the bank be- coming insolvent. Fletcher v. Sharpe, 108 Ind. 276, 9 N. E. 142.
Deposits of school funds made by the treasurer of a school district in a private bank are not wrongful, and the banker does not become a trustee ex maleficio as to such deposits so as to give the school district a prefer- ential claim against the assets of the bank on the death insolvent of the owner of the bank.


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