Swiss Credit Bank v. Virginia National Bank-Fairfax, Formerly Community Bank and Trust Company

U.S. Court of Appeals for the Fourth Circuit
Swiss Credit Bank v. Virginia National Bank-Fairfax, Formerly Community Bank and Trust Company, 538 F.2d 587 (4th Cir. 1976)
19 U.C.C. Rep. Serv. (West) 603; 1976 U.S. App. LEXIS 8724

Swiss Credit Bank v. Virginia National Bank-Fairfax, Formerly Community Bank and Trust Company

Opinion

PER CURIAM: ■

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.

Reference

Full Case Name
SWISS CREDIT BANK, Appellee, v. VIRGINIA NATIONAL BANK-FAIR-FAX, Formerly Community Bank and Trust Company, Appellant
Cited By
18 cases
Status
Published