Recent Important Decisions

Banks and Banking – Negotiable Instruments – Indorsement of Forged Check – Plaintiff, nowing that the one who signed the drawer’s name was not the drawer herself, but not knowing further of signer’s lack of authority, presented a check drawn on defendant bank in which bank the supposed drawer had an account but not sufficient to cover the check. The check was payable to plaintiff and indorsed by him and was placed to his credit in the bank. After discovering the forgery defendant charged tle check to plaintiff’s account. Plaintiff objected to such charge. Held, that the defendant might repudiate the payment as the plaintiff was not a bona fide holder within the general rule. Woodward v. Savings and T’ust Co. (N. C., igig), 100 S. R. 304.