Bank of America National Trust and Savings Association, a National Banking Association v. United States

The Bank of American National Savings and Trust Association appeals from a judgment for $15,327.44 entered against it by the District Court in favor of the United States and covering fifteen of the latter’s drafts fraudulently issued by an unknown person or persons working at the United States Air Corps Station Disbursing Office at El Toro, California. The swindle was accomplished by forging military pay orders, records and drafts in favor of non-existent servicemen and cashing them at the Bank, which later presented them for payment to the Treasurer of the United States on the Bank’s endorsement (exceptions) of “prior endorsements guaranteed.” The Bank claims that the imposter rule enunciated in United States v. Bank of America N.T. and S.A., 274 F.2d 366 (9th Cir. 1959), and Atlantic National Bank of Jacksonville v. United States, 250 F.2d 114 (5th Cir. 1957) is controlling and that, therefore, it is not liable. We agree and reverse the judgment.

1. Julius Caesar followed the rule, “While in Rome, do as the Romans do”, and when I sit on circuit, I do as that Circuit does. Judge Chambers, later Chief Judge, in writing United States v. Bank of America N.T. and S.A., supra,…