Benjamin N. Cardozo

“ Form is closely knit to substance when a bank, at the end of its resources, is about to close its doors.
The argument is made that the agent for collection was guilty of a wrong in accepting payment through the medium of a check upon itself with knowledge at the time that insolvency was imminent. If this be so, the wrong does not avail to charge a trust upon the assets whereby the plaintiff will have a preference over the creditors at large. A cause of action for damages may exist, upon which the plaintiff, making proper proof, will be entitled to a dividend. ”

“ What was done had no effect except to diminish liabilities by reducing the indebtedness due to a depositor. Jennings v. United States Fidelity & Guaranty Co. (Feb. 4, 1935) 294 U.S. 216, 55 S.Ct. 394, 79 L.Ed. 869. ”