Page:Federal Reporter, 1st Series, Volume 8.djvu/554

640 federal befobteb. ���FrBST Nat. Bank of Cincinnati v. Coates and another. �Thibd Nat. Bank op Cincinnati v. Same. �Commercial Bank of Cincinnati v. Same. �Eeno County State Bank v. Same. �illircuit Court, W. B. Musouri, W. D. 18810 �1. Negotiable Instruments — Dbapt. �A draft is a clieck, though it is apparent on its face that the drawer anri drawee are residents of different states. �2. Bame — Equitable Assignments. �A check operates as an equitable assignment 'pro tanto, as iietween the holder and the assignee in insolvenoy of the drawer, where it is made and delivered prier to the assignment and not presented for payment until af ter the drawee is notified of the assignment by the assignee. �3. Same— Election ov Remedies. �In an action by the draftholders against such assignee to entorce payment of their drafts in full, keld, that they had not barred themselves from recover- ing in this action by presenting their drafts to the assignee as claims against the estate, having them allowed, and accepting dividends thereon. �The Martin Bank carried on business at Kansas City, and between July 25 and August 2, 1878, made and delivered to the oomplain- ants in these cases its drafts or checks on the Metropolitan National Bank, of New York. They were in the following form, the only differ- ence being in number, date, amount, and name of payee : �"STATE or MISSOUEI. " $714.65. The Mabtin Bank, No. 196,104. �"Kansas City, Mo., July 30, 1878. " Pay to the order of Theo. Stanwood, Cashier, $714.65. �" D. 0. Smakt, Vice President. " To Metropolitan National Bank, New York. " �The drawer bank failed, and on August 3, 1878, made an assign- ment under the laws of Missouri to the defendant Coates, of all its property and effects, for the equal benefit of all its creditera. The fi.rst notice which the Metropolitan National Bank received of the assignment was on the morning of August 5th, when it received a telegram from Coates which simply stated that fact. At that time the Metropolitan Bank had in its hands, on deposit to the credit of the Martin Bank, about |56,000. The two banks had for many years been correspondents, and most of the New York exchange sold by the Kansas City Bank had been on the Metropolitan Bank. After this notice of the assignment the latter bank paid none of the drafts drawn on it. The drafts belonging to the complainants were presented ��� �