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  5. 266 N.W.2d 496 (1978)
 

STATE BANK OF BROOTEN v. AM. NAT. BANK, ETC.

No. 47683.

266 N.W.2d 496 (1978)

STATE BANK OF BROOTEN, Respondent, v. AMERICAN NATIONAL BANK OF LITTLE FALLS, Appellant.

Supreme Court of Minnesota.

Rehearing Denied May 31, 1978.

Attorney(s) appearing for the Case

Gordon Rosenmeier and John E. Simonett, Little Falls, for appellant.

Frauenshuh & Fahlberg and Robert D. Stoneburner, Paynesville, for respondent.

Heard before SHERAN, C. J., and SCOTT and WAHL, JJ., and considered and decided by the court en banc.

SCOTT, Justice.

This is an appeal from an order of the district court denying defendant's motion for a new trial in an action brought by State Bank of Brooten (State Bank) against American National Bank of Little Falls (American) to determine American's liability on a bank money order issued by American to State Bank, the payee. We reverse.

In 1974, Steve Radloff purchased an irrigation system from Bonanza Valley Sales and Irrigation, Inc. (Bonanza). Radloff...

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