The bank has its customary lien upon a collection left with it or the proceeds for any debt that is matured owing by the owner of the paper to the bank unless there be a special agreement not consistent therewith.1 If the paper comes to a correspondent bank which has notice of the fact that it is a collection for the owner, not the bank, it has no lien upon the paper for a claim which it has against its correspondent bank.2 The form of the indorsement may be notice to it. Thus, an indorsement for collection is full notice of the owner's rights;3 so is an indorsement for the account of the depositor:4 and it has been held that an indorsement for collec-tion and credit is also notice.5 A mere indorsement for credit ought to be just as much notice as an indorsement for collection and credit, since both indorsements mean exactly the same thing, and the fact shows from the deposit in a bank. A general indorsement, however, shows nothing, and hence would not be notice. The correspondent bank, if it has no notice of any ownership other than that of the remitting bank, may claim a lien upon the paper or its proceeds to the extent of any credit given to the correspondent bank upon its presumed ownership of the paper,6 or it may claim a lien created by agreement or by a course of dealing.7 If, however, the paper transmitted by another bank be generally indorsed and for account, yet, if it be accompanied by an explanatory letter, the receiving bank will have notice of whatever is communicated to it by the letter.8

2 Louisiana Ice Co. v. State Nat. Bank, 1 McGloin, 181.

3 First Nat Bank v. First Nat. Bank, 76 Ind. 561; Bank of Clarke Co. v. Gilman, 81 Hun, 486, 152 N. Y. 634. But of course the correspondent bank's right to collect remains as to paper in its hands. But it cannot pay over to the insolvent bank. Evansville Bank v. Bank, 155 U. S. 556.

4 This would not affect correspondent banks without notice, except that they would have no right after notice to pay to the insolvent bank. Armstrong v. National Bank, 90 Ky. 431.

5 Bank of Mobile v. Huggins, 8 Ala. 206.

1 Cockrill v. Joyce, 62 Ark. 216; Gibbons v. Hecox, 105 Mich. 509. In cases of insolvency it would have lien for an unmatured debt, except in a few states.

2 Lawrence v. Stonington Bank, 6 Conn. 521; Bank of Metropolis v. New England Bank, 1 How. 234, 6 How. 212; Sweeney v. Easter, 1 Wall. 166.

3 Sweeney v. Easter, 1 Wall. 160; Evansville Bank v. German Am. Bank, 155 U. S. 556.

4 White v. National Bank, 102 U. S. 658.

5 Armstrong v. National Bank, 90 Ky. 431.