Samuel C. Mazilly wrote a personal check that was drawn on Calcasieu- Marine National Bank of Lake Charles, Inc. (CMN Bank). The check was made payable to the order of Lee St. Mary and was delivered to him. St. Mary indorsed the check in blank and delivered it to Leland H. Coltharp Sr. in payment for some live-stock. Coltharp accepted the check and took it to the City Savings Bank & Trust Company (City Savings) to deposit it. He indorsed the check as follows: “Pay to the order of City Savings Bank & Trust Company, DeRidder, Louisiana.” City Savings accepted the check and forwarded it to CMN Bank for payment. The check never arrived at CMN Bank. Some unknown person stole the check while it was in transit and presented it directly to CMN Bank for payment. The teller at CMN Bank cashed the check without indorsement of the person who presented it. When CMN Bank accepts the check, is it order or bearer paper? Has the person cashing the check acted unethically and has he acted illegally? Caltharp v. Calcasieu- Marine National Bank of Lake Charles, Inc., 199 So. 2d 568, 1967 La. App. Lexis 5203 (Court of Appeal of Louisiana)

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