Daniel Pratt, Assignees v. Henry W. Short, Respondents

Summary

The New York Court of Appeals held that the People's Safe Deposit and Savings Institution lacked authority to discount commercial paper, rendering the note void, but that the assignees could recover the money advanced on that void security. The decision rested on a construction of the corporation's charter, the restraining act, and the principle that restitution is available despite an illegal contract.