TRUSTS - TRACING OF ASSETS - PREFERENCE

Authors

Abstract

Public funds were unlawfully deposited in the insolvent bank. At the time the bank closed the cash in its own vault was less than the amount of public funds deposited but it did have, at the time of closing and at all times before, deposits in correspondent banks which, taken with the cash in its own vault, exceeded the amount of the public funds unlawfully deposited. Held, that the unlawful deposit of the public funds, the bank knowing them to be public funds, created a trust of those funds in the hands of the bank, which trust was impressed not only upon the cash in the bank's own vault but also upon that deposited in its correspondent banks. Reichert v. United Savings Bank, 255 Mich. 685, 239 N. W. 393 (1931).

Recommended Citation

TRUSTS - TRACING OF ASSETS - PREFERENCE, 30 Mich. L. Rev. 983 (1932).
Available at: https://repository.law.umich.edu/mlr/vol30/iss6/32