Petitioner deposited to respondent bank several checks acquired through forged indorsements. The respondent bank debited petitioner’s account.
Whether or not there exists creditor-debtor relationship between petitioner and respondent.
No. There was no creditor-debtor relationship created between the parties. When the petitioner deposited the checks with the respondent, the nature of the relationship created at that stage was one of agency, that is, the bank was to collect from the drawees of the checks the corresponding proceeds. The petitioner must in turn shoulder the loss of the amounts which the respondent; as its collecting agent, had to reimburse to the drawee-banks.