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Case: White v National Bank

Instrument: Bill of Exchange/Draft

Drawer: Stewart Silver Reducing Company by J. Oscar Stewart, President
Drawee: Third National Bank
Payee: Miners National Bank, Georgetown, Colorado
Indorser: S.V. White
Indorsee: Thomas W. Phelps
Facts: S.V. White protested the draft for nonpayment after Miners National Bank refused to
pay him. However, due to the words for account of Miners National Bank of Georgetown,
Colorado, in the indorsement of Brownell, the president of Miners National Bank, the Circuit
Court ruled that theres no obligation for the bank to pay the draft.
Issue: WON Miners National Bank is liable to pay S.V. White
Held: Yes. Even though such words put the indorsee as a collecting agent only and not as the
owner of the draft, the fact that S.V. White paid for the value of the draft on the thought of
buying it. It is also evident that Bronwell thought he was selling the drafts, and that both of
them missed the restrictive words of the indorsement.