People ex rel. Nelson v. Peoples Loan & Trust Co.
| Citation | 285 Ill.App. 552,2 N.E.2d 763 |
| Decision Date | 15 May 1936 |
| Docket Number | Gen. No. 8968. |
| Court | United States Appellate Court of Illinois |
| Parties | PEOPLE EX REL. NELSON, AUDITOR OF PUBLIC ACCOUNTS, v. PEOPLES LOAN & TRUST CO. WARNER v. O'CONNELL. |
OPINION TEXT STARTS HERE
Appeal from Circuit Court, Ogle County; Albert H. Manus, Judge.
Proceeding by the People of the State of Illinois, on the relation of Oscar Nelson, Auditor of Public Accounts of the State of Illinois, against the Peoples Loan & Trust Company, of Rochelle, Illinois, wherein William L. O'Connell was appointed receiver of the Peoples Loan & Trust Company, and wherein Henry C. Warner, as Trustee of the Estate of George D. Whitcomb Company, a corporation, bankrupt, filed a claim. From an order disallowing the claim, claimant appeals.
Reversed and remanded, with directions. Cutting, Moore & Sidley, of Chicago, for appellant.
Welsh & Welsh, of Rockford, and John B. Hayes, of Rochelle, for appellee.
In November, 1927, George D. Whitcomb Company, a corporation, opened an account with the Peoples Loan & Trust Company, a corporation of Rochelle, Ill. Before the account was opened with the bank, the following resolution was adopted on November 25, 1927: “At a meeting of the Board of Directors of the George D. Whitcomb Company, held at the offices of the corporation, Corner of Second Street and Fifth Avenue, Rochelle, Ill., on the 25th day of November, 1927, at which meeting a quorum of said Directors was present, it was on motion unanimously: Resolved, That an account be carried with the Peoples Loan & Trust Company of Rochelle, Ill., in the name of this corporation; and Resolved, further, that the Peoples Loan & Trust Company of Rochelle, Ill., is hereby authorized to honor checks and other orders of any character whatsoever for the payment of funds, signed in the name of this corporation by any one of the three of the following officers or employes of this corporation:
+----------------------------------------+
¦President ¦Treasurer¦Secretary ¦
+--------------+---------+---------------¦
¦W. C. Whitcomb¦Carl Heim¦Arthur T. Guest¦
+----------------------------------------+
Resolved, further, that said The Peoples Loan & Trust Company of Rochelle, Ill., is hereby authorized and directed to honor and pay any checks or any such other orders so drawn when so signed, whether such checks or any such other orders be payable to the order of the person or persons (if more than one) so authorized to sign checks, or any such other orders, in his or either of their (if more than one) individual capacity or not, and whether such checks or any such other orders are deposited to his or their (if more than one) individual credit or not; and Resolved, further, that any one of the following officers or employees of this corporation: W. C. Whitcomb, President; Carl Heim, Treasurer, Arthur T. Guest, Secretary, are authorized from time to time to borrow money in the name of this corporation from the Peoples Loan & Trust Company of Rochelle, Ill., and to give the notes or other obligations of any kind whatsoever of this corporation therefor in such amounts and for such period of time and rates of interest and discount as they may see fit, and of any character whatsoever of this corporation as security for money borrowed and/or obligations now or hereafter incurred to said Bank, and to discount with said Bank receivables of this corporation, and any one of such persons acting individually is authorized from time to time to withdraw, receipt for, and/or execute individually and deliver trust receipts for savings deposits, securities, or other property of any kind whatsoever purchased from, left with, or held by said Bank for safe keeping, or as collateral security, or for delivery and/or collection, and said Bank is hereby expressly authorized to deliver to any of the persons designated in this paragraph any such savings deposits, securities or other property of any kind whatsoever upon a receipt or trust receipt executed by any of such persons in his individual name and without affixing the name of the company to such receipt or trust receipt.
“Be it further Resolved, that said the Peoples Loan & Trust Company of Rochelle, Ill., is authorized to accept as the endorsement of this corporation on any checks, drafts, or bills, or any other orders of any character whatsoever for the payment of money, made payable to, or to the order of this corporation, or otherwise, whether such endorsement be for deposit or for the purpose of having the same cashed and securing the proceeds thereof, or for any other purpose, an endorsement made in the manner hereinabove authorized for the signing or drawing of checks; provided, however, that for the purpose of deposit said bank may accept an endorsement made by any person affixing an endorsing stamp thereon in the name of this corporation, with or without stating the name or title of an official of this corporation; and Be it further resolved, that the foregoing resolutions and powers therein contained shall be binding upon this corporation and said Bank until written notice of any change or changes therein shall have been given to the President, a Vice-President, Cashier or an Assistant Cashier of said Bank.
“I, Arthur T. Guest, hereby certify that I am the Secretary of the George D. Whitcomb Company, a corporation organized under the laws of Illinois, and as such Secretary, I certify to The Peoples Loan & Trust Company of Rochelle, Ill., that I have custody and control of the corporate records of said corporation; and that the foregoing is a true copy of a resolution duly adopted by the unanimous vote of all of the directors present at a meeting of the directors of said corporation duly convened and held according to law and to the by-laws of said corporation, at which meeting a majority and a quorum of the directors was present, all as taken from and compared with the minutes of said meeting. I further certify that said resolution has not been repealed or amended.
“I...
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...a bank should inquire when a firm's employee signs a large check with himself as payee. See People ex rel. Nelson v. Peoples Loan & Trust Co., 285 Ill.App. 552, 2 N.E.2d 763 (1st Dist.1936); Milano v. Sheridan Trust & Savings Bank, 242 Ill.App. 362 (1st Bonded Financial, 838 F.2d at 897-98.......
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