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> 65. ---- Public funds

Bond of national bank given as security for deposits of state funds conditioned as required by state law for performance of all duties required of depository by state law held not to impose obligation which could not be complied with under National Banking Act. > Lewis v. Fidelity & Deposit Co. of Maryland, U.S.Ga.1934, 54 S.Ct. 848, 292 U.S. 559, 78 L.Ed. 1425.

This chapter does not confer power on national bank to pledge assets to secure any public deposits except those made thereunder by Secretary of Treasury of the United States. > City of Marion, Ill., v. Sneeden, U.S.Ill.1934, 54 S.Ct. 421, 291 U.S. 262, 78 L.Ed. 787, rehearing denied > 54 S.Ct. 557, 291 U.S. 651, 78 L.Ed. 787.

Deposit in national bank by receiver of state bank appointed by state court is a "private deposit," and not a deposit of "public money of a state or any political subdivision thereof" within this section authorizing national banks to secure deposits of such public moneys. > Griffin v. Royall, C.C.A.4 (S.C.) 1934, 70 F.2d 103.

A national bank, though not designated as a depository of public moneys, which accepts deposits by a postmaster of government money, is liable to the government as a bailee for all sums not withdrawn in the manner required by law, and it cannot apply on its personal claim against the postmaster a payment made by him to be applied toward making good a shortage in his balance. > U.S. v. National Bank of Asheville, C.C.W.D.N.C.1896, 73 F. 379.

> 66. ---- Subscription to capital stock

Where a depositor sued the receiver of a bank for the amount of a deposit, and he pleaded that a part of the deposit was used to pay the depositor's subscription to the capital stock of the bank, the burden of proof was on the receiver to show that the purchase of stock was actually made. > Somerset Nat. Banking Co.'s Receiver v. Adams, Ky.1903, 72 S.W. 1125, 24 Ky.L.Rptr. 2083.

> 67. Special deposits--Generally

Where a national bank has been accustomed to take deposits of money, securities, or other valuables for the accommodation of the depositor for safe-keeping, and this practice is known to and acquiesced in by the directors, and the property deposited is lost by gross carelessness of the bank, liability ensues in like manner as if the deposits had been authorized by the bank's charter. > First Nat Bank of Carlisle, Pa, v. Graham, U.S.Pa.1879, 100 U.S. 699, 10 Otto 699, 25 L.Ed. 750. See, also, Ouderkirk v. Central Nat. Bank, 1890, 119 N.Y. 263, 23 N.E. 875; > Mansfield First Nat. Bank v. Zent, 1883, 39 Ohio St. 105; Pattison v. Syracuse Nat. Bank, 1880, 80 N.Y. 82, 36 Am.Rep. 582; Monmouth First Nat. Bank v. Strang, 1888, 28 Ill.App. 325, affirmed > 138 Ill. 347, 27 N.E. 903; Allentown First Nat. Bank v. Rex, 1879, 89 Pa. 308, 33 Am.Rep. 767; Chattahoochee Nat. Bank v. Schley, 1877, 58 Ga. 369; Lyons First Nat. Bank v. Ocean Nat. Bank, 1875, 60 N.Y. 278, 19 Am.Rep. 181; Wiley v. Brattleboro First Nat. Bank, 1875, 47 Vt. 546, 19 Am.Rep. 122; Scott v. National Bank, 1873, 72 Pa. 471, 13 Am.Rep. 711; Dearbourn v. Union Nat. Bank, 1870, 58 Me. 273; Turner v. Keokuk First Nat. Bank, 1869, 26 Iowa 562; Lancaster County Nat. Bank v. Smith, 1869, 62 Pa. 47; Smith v. Westfield First Nat. Bank, 1868, 99 Mass. 605, 97 Am.Dec. 59; Foster v. Essex Bank, 1821, 17 Mass. 479, 9 Am.Dec. 168.

By agreement, deposits which would otherwise be general may be given character of trust funds. > Texas & P. Ry. Co. v. Pottorff, C.C.A.5 (Tex.) 1933, 63 F.2d 1, certiorari granted > 54 S.Ct. 55, 290 U.S. 609, 78 L.Ed. 533, affirmed > 54 S.Ct. 416, 291 U.S. 245, 78 L.Ed. 777, amended > 54 S.Ct. 525, 291 U.S. 649, 78 L.Ed. 777, rehearing denied > 54 S.Ct. 627, 292 U.S. 600, 78 L.Ed. 1464.

Fund, deposited in bank for special purpose subject to depositor's check, remains property of depositor. > U.S. Shipping Board Emergency Fleet Corporation v. Atlantic Corporation, D.C.Mass.1925, 5 F.2d 529, error dismissed > 16 F.2d 27.

'In the case of a special deposit, the bank assumes merely the charge or custody of property, without authority to use it, and the depositor is entitled to receive back the identical money or thing deposited. In such case, the right of property remains in the depositor, and if the deposit is of money, the bank may not mingle it with its own funds. The relation created is that of bailor and bailee, and not that of debtor and creditor.' 3 R.C.L. 522. > Tuckerman v. Mearns, App.D.C.1919, 262 F. 607, 49 App.D.C. 153.

National banks are liable for the loss of property held by them merely for the accommodation of their customers, without any consideration for the keeping of it except the profit derived from the banking business of such customers. > Security Nat. Bank v. Home Nat. Bank, Kan.1920, 187 P. 697, 106 Kan. 303.

A "deposit for a specified purpose" is one in the making of which a trust fund is constituted with respect to which a special duty as to its application is assumed by the bank. > Cooper v. National Bank of Savannah, Ga.App.1917, 94 S.E. 611, 21 Ga.App. 356, certiorari granted > 38 S.Ct. 423, 246 U.S. 670, 62 L.Ed. 931, affirmed > 40 S.Ct. 58, 251 U.S. 108, 64 L.Ed. 171.

Receipt of "special deposits" is within the powers of a national bank. > Harper v. Merchants' & Planters' Nat. Bank of Mt. Vernon, Tex.Civ.App.1934, 68 S.W.2d 351, error dismissed.