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Swiss Credit Bank v. Vir. Nat. Bank-Fairfax

United States Court of Appeals, Fourth Circuit
Jun 3, 1976
538 F.2d 587 (4th Cir. 1976)

Summary

applying Virginia law

Summary of this case from Flatiron Linen v. First Amer. State Bank

Opinion

No. 75-2154.

Argued May 5, 1976.

Decided June 3, 1976.

Richard J. Stahl, Alexandria, Va. (Taylor Clemente, Alexandria, Va., on brief), for appellant.

John H. Ariail, Jr., Arlington, Va. (Henry St. John FitzGerald, Tolbert, Smith, FitzGerald Ramsey, Arlington, Va., on brief), for appellee.

Appeal from the United States District Court for the Eastern District of Virginia.

Before HAYNSWORTH, Chief Judge, and CRAVEN and FIELD, Circuit Judges.


This is an action by a foreign bank, which cashed a cashier's check, against a Virginia Bank which issued the check and then refused to honor it. On cross motions for summary judgment, the court below granted judgment for Swiss Credit.

The question decided below was whether the bank's notice of refusal to honor the check was timely under the Uniform Commercial Code and/or under the Rules for the Collection of Commercial Paper promulgated by the International Chamber of Commerce.

We see no need to reach the question of timeliness of the notice of dishonor. A cashier's check is a bill of exchange drawn by a bank upon itself. It is accepted in advance by the act of its issuance, and it cannot be dishonored by the issuing bank because of an indebtedness to it of one of its customers. 5B Michie on Banks and Banking, Ch. 9 § 253 (1973); 107 A.L.R. 1463 (1937).

We affirm the judgment although we do so for reasons other than those stated by the district court.

AFFIRMED.


Summaries of

Swiss Credit Bank v. Vir. Nat. Bank-Fairfax

United States Court of Appeals, Fourth Circuit
Jun 3, 1976
538 F.2d 587 (4th Cir. 1976)

applying Virginia law

Summary of this case from Flatiron Linen v. First Amer. State Bank
Case details for

Swiss Credit Bank v. Vir. Nat. Bank-Fairfax

Case Details

Full title:SWISS CREDIT BANK, APPELLEE v. VIRGINIA NATIONAL BANK-FAIRFAX, FORMERLY…

Court:United States Court of Appeals, Fourth Circuit

Date published: Jun 3, 1976

Citations

538 F.2d 587 (4th Cir. 1976)

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