Bogue v. Dunten
| Citation | 200 N.E. 746,102 Ind.App. 39 |
| Decision Date | 01 April 1936 |
| Docket Number | 15,122 |
| Parties | BOGUE v. DUNTEN, RECEIVER |
| Court | Court of Appeals of Indiana |
BANKS AND BANKING---Insolvency---Claims---Special Deposits---Bonds.---Where customer delivered bonds to a trust company and they were accepted for the purpose of having one exchanged for another type of bond and others re-registered but the bonds were sold and the proceeds commingled with the trust company's general assets, upon insolvency, the customer was entitled to a preferred lien against all general assets.
From La Grange Circuit Court; Clyde C. Carlin, Judge.
Action by Sabra A. Bogue against Frank J. Dunten, Receiver of La Grange County Trust Company, on a preferred claim. From a judgment allowing preference against cash assets only claimant appealed.
Reversed.
Rex S Emerick, for appellant.
Luke H. Wrigley, for appellee.
On June 15, 1931, appellant delivered to the La Grange County Trust Company a $ 1,000.00 U.S. Liberty Bond for the purpose of exchanging it for Federal Land Bank Bonds, with the understanding that the difference was to be paid to appellant in cash. The trust company issued and gave appellant a receipt for said bond, which receipt was as follows:
On June 19, 1931, appellant delivered to the trust company registered U.S. Liberty Bonds, of the total par value of $ 1,300.00, which were registered in the joint names of her husband, who died in December, 1928, and herself, for the purpose of having said bonds sent to the U.S. Treasury Department and having them re-registered in her individual name. As a receipt for said bonds the trust company gave appellant a small savings account book containing entries which described said bonds. Immediately following said entries was the following: "Received the above bonds in the amount of $ 1300.00 that is entered above and these bonds to be bought and registered in the name Sabra A. Bogue."
On the respective dates when the trust company received said bonds, the trust company sent the bonds to its correspondent bank for credit on its checking account with said correspondent bank, and the trust company received a total credit of $ 2,300.00 on its said checking account for said bonds.
On August 8, 1931, the bank ceased to do business and was taken over by the State Banking Department. On November 20, 1931 appellee was appointed receiver of the trust company. Appellant never received any of the bonds which she had ordered through...
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