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Abstract

A certificate of deposit issued by A bank and owned by plaintiff was presented for collection in a routine clearance transaction between defendant bank and A bank. A bank paid for the several items presented with other items and a draft. The draft was dishonored. After both banks closed, defendant bank collected the amount of the draft from A bank as a preferred claim. Plaintiff seeks full payment of the certificate of deposit. Held, payment terminated the agency for collection and gave rise to a debtor-creditor relation, and, for this purpose, payment by draft was equivalent to any other form of payment. The par clearance statute of the state had no effect because by its terms it applied only to checks. Citizens Nat. Bank v. Fidelity & Casualty Co. of New York, (C. C. A. 4th, 1936) 86 F. (2d) 4.

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