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Full-Text Articles in Law
Community Development Banking Strategy For Revitalizing Our Communities, Rochelle E. Lento
Community Development Banking Strategy For Revitalizing Our Communities, Rochelle E. Lento
University of Michigan Journal of Law Reform
CDCUs and CDLFs may outnumber CDBs, but their scope of lending activity pales in comparison. Despite CDBs' relatively small number, their impact on their respective communities warrants an in-depth discussion of their structures and formulas for success. This Article will provide an overview of the CDBs in the United States. Part I first sets forth the legal structure and purpose of CDBs, and then reviews the history and current status of mature CDBs and emerging CDBs. Part II considers community development credit unions, after which Part III gives community development loan funds similar treatment. Finally, Part IV analyzes the potential …
The Impact Of Michigan's Common-Law Disabilities Of Coverture On Married Women's Access To Credit, Michigan Law Review
The Impact Of Michigan's Common-Law Disabilities Of Coverture On Married Women's Access To Credit, Michigan Law Review
Michigan Law Review
In the United States, credit is indispensable to the improvement of one's economic status and life style. Its availability often dictates •the extent to which one has access to education, homeownership, entrepreneurship, and investment, and its unobtainability inhibits full participation in the activities and opportunities of American society. American women have long been systematically excluded from equal access to credit by lending institutions of all types and ·thus have been denied their rightful role in the economic life of the country. It is only recently, however, that the women's movement has begun to focus attention on credit discrimination and that …
The Joint And Survivor Account In Michigan-Progress Through Confusion, Richard V. Wellman
The Joint And Survivor Account In Michigan-Progress Through Confusion, Richard V. Wellman
Michigan Law Review
Legal writers have been intrigued for years by the challenge of classifying and identifying the resulting incidents of the joint and survivor bank deposit when an attempt is made to use it as a mode of effectuating a donor depositor's intention to confer benefits on a donee co-depositor. Much in their discussions is useful to one who is concerned with the concept that has evolved in Michigan, where a 1909 statute states that some co-depositors are presumed to be joint tenants. Michigan judges and practitioners must determine, however, whether comment about national trends is applicable here, for in many respects …
Banks And Banking-Bank Deposits And The N.I.L.
Banks And Banking-Bank Deposits And The N.I.L.
Michigan Law Review
Plaintiff sued H and W and a writ of garnishment was issued against B who filed a disclosure of an indebtedness owing to H and W as joint creditors. W was later dropped from the case by a voluntary non-suit. Shortly after such dismissal, W applied to B for payment of the debt, but payment was refused because of the outstanding garnishment. B, however, expressed to W an intention, perhaps even an assurance, to honor such application when freed of the garnishment. That garnishment was dismissed several days later, but in the meantime another writ of garnishment in the …
Banks And Banking - Immunity Of National Banks From State Escheat Statute, Spencer E. Irons
Banks And Banking - Immunity Of National Banks From State Escheat Statute, Spencer E. Irons
Michigan Law Review
A Michigan statute provided that bank deposits, in the possession or control of insolvent banks, which have remained inactive for a period of seven years or more shall escheat to the state. In a suit for a declaratory judgment, filed by the Attorney General of Michigan, against the receiver of an insolvent national bank and the Comptroller of the Currency of the United States, the federal district court held that the receiver must turn over deposits coming within the terms of the statute. Held, the statute is invalid if so applied, since it would constitute an unlawful interference with …
Banks And Banking - Right Of National Bank To Sue On Personal Guaranty To State Bank After Consolidation L Of State Bank With National Bank, William C. Whitehead
Banks And Banking - Right Of National Bank To Sue On Personal Guaranty To State Bank After Consolidation L Of State Bank With National Bank, William C. Whitehead
Michigan Law Review
Defendants guaranteed payment to a state bank of the notes and renewals made by a borrower. Shortly thereafter the state bank was consolidated with a national banking association. The borrower issued a renewal note to the consolidated bank for the indebtedness owing the state bank. This was followed by a consolidation with another state bank, the appointment of a receiver, and the sale of the consolidated bank's assets to plaintiff. In answer to the claim on the guaranty for payment of the renewal note, defendants declared that the obligation was not assignable and that the identity of the obligee was …
Instalment Payment Of Judgments, Frederick Woodbridge
Instalment Payment Of Judgments, Frederick Woodbridge
Michigan Law Review
This article is concerned primarily with a discussion of satisfaction of judgments by instalment payments where the judgment debtor is the typical American wage earner. It is based upon an analysis of the applicable statutes, the experience recorded in decided cases, interviews with numerous judges administering the statutes, and observations in certain of the courts where that method is used.
Banks And Banking - Stockholder's Statutory Liability For Additional Assessment - Statute Of Limitations, Charles F. Dugan
Banks And Banking - Stockholder's Statutory Liability For Additional Assessment - Statute Of Limitations, Charles F. Dugan
Michigan Law Review
The plaintiff, receiver of the Bank of Saginaw, a Michigan state bank, sought to collect an assessment of one hundred per cent on ninety-six shares of stock of the bank, held by the respondent as trustee for Gardner Grout Rose. On August 31, 1933, the Commissioner of the Michigan State Banking Department, with the approval of the Governor, ordered the then conservator to levy an assessment on stockholders of the bank. On October 31, 1933, the conservator was replaced by a receiver. On September 5, 1934, the Michigan State Banking Commissioner, also with the approval of the Governor, made an …
Bills And Notes - Consideration - Burden Of Proof When Holder Not A Holder In Due Course, Robert Meisenholder
Bills And Notes - Consideration - Burden Of Proof When Holder Not A Holder In Due Course, Robert Meisenholder
Michigan Law Review
Plaintiff, a maid and housekeeper for the decedent, sued the decedent's estate as payee of two checks signed by the decedent and dishonored by the drawee bank. In support of the defense of lack of consideration, the estate introduced evidence that plaintiff had been paid by the estate for her services to the decedent, and that plaintiff's daughter had told the bank's cashier that the checks had been given to her mother by decedent to be cashed when it became certain that decedent would not live. There was no other evidence. Held, the trial court properly directed a verdict …
Corporations - Liability Of Stockholders Of Bank Stock Holding Company For Statutory Assessment On Bank Stock., Edward J. Wendrow
Corporations - Liability Of Stockholders Of Bank Stock Holding Company For Statutory Assessment On Bank Stock., Edward J. Wendrow
Michigan Law Review
The late depression with its attendant bank failures and the consequent assessment of shareholders has resulted in bringing before the courts a question that has never been litigated until comparatively recent times. That is, can the shareholders of a holding company, whose assets consist of stock of the closed bank, be subjected to the statutory assessment when the corporation itself is unable to meet the assessment? The case of Nettles v. Rhett is the latest of this series, and is fairly typical of the issues involved. This case concerned a suit by the receiver of the Peoples State Bank of …
Bills And Notes - Qualified Indorsement - By Assignment Of "Right, Title And Interest'', Michigan Law Review
Bills And Notes - Qualified Indorsement - By Assignment Of "Right, Title And Interest'', Michigan Law Review
Michigan Law Review
Defendant, payee of a promissory note, transferred it by writing on the back, "For value received, I hereby assign all my rights, title and interest to the within note .... " Held, defendant's indorsement was qualified, and she was not liable for its payment. Fecko v. Tarczynski,. 281 Mich. 590,275 N. W. 502 (1937).
Trusts -Tracing Principles Applicable Where Funds Of Two Or More Cestuis Are Wrongfully Commingled, Michigan Law Review
Trusts -Tracing Principles Applicable Where Funds Of Two Or More Cestuis Are Wrongfully Commingled, Michigan Law Review
Michigan Law Review
Public funds of a school district, of the village of Vassar, and of ten other municipalities were deposited in defendant bank without securing the deposit bond required by statute. After defendant bank had been declared insolvent, the school district intervened and sought to have the amount of its deposit impressed upon the cash assets of the bank as a trust, on the ground that the bank became a trustee ex maleficio. The total of the illegal deposits was greater than the cash on hand and the credits established in solvent correspondent banks at the time the receiver took over the …
Assignments -Validity Of Gratuitous Written Assignment
Assignments -Validity Of Gratuitous Written Assignment
Michigan Law Review
Deceased took defendant, his son, to a notary and there made and acknowledged written assignments of three mortgages he owned. He handed these assignments to defendant, saying "I give you these. Put them in the safety-deposit box." Defendant went away with the assignments which reappear only after the father's death; they were found in an envelope, marked with defendant's name in deceased's hand, in a safety-deposit box owned jointly by deceased and defendant. Deceased always retained possession and enjoyment of the actual mortgage instruments. Plaintiff, another son, claims these mortgages should be part of deceased's estate. The court held that …
Banks And Banking - Bank Stock Holding Company As Fraud On Double Liability Statute
Banks And Banking - Bank Stock Holding Company As Fraud On Double Liability Statute
Michigan Law Review
The question as to when, to prevent evasion of a statutory liability, a court will look behind a corporate entity in order to hold individual stockholders liable has been raised in two recent cases. The first, a federal case, involved the Detroit Bankers Company, a Michigan corporation formed for the purpose of holding and investing in bank stocks. Each corporate stock certificate of the holding company contained an "agreement" that the holder of the stock would be liable for his pro rata share of any assessment for which the corporation might become liable as a result of the failure of …
Bills And Notes-Bonds Payable At Office Of Trustee Which Becomes Insolvent After Due Date But Before Bonds Presented, Ralph W. Aigler
Bills And Notes-Bonds Payable At Office Of Trustee Which Becomes Insolvent After Due Date But Before Bonds Presented, Ralph W. Aigler
Michigan Law Review
In Morley v. University of Detroit, decided May 16, 1933, the Supreme Court of Michigan reaches a conclusion not only of intense interest as a matter of legal doctrine, but also tremendously important, if followed, in determining the location of losses that may run into large sums. The defendant had floated a large bond issue secured by trust mortgage to a Trust Company. Among the obligor's undertakings in the mortgage was one to the effect that it would punctually pay the principal and interest of every bond according to the terms of the bond and coupons and would "deposit …
Bills And Notes - Due Presentment Of Checks When Drawee Is In Same Town
Bills And Notes - Due Presentment Of Checks When Drawee Is In Same Town
Michigan Law Review
The plaintiff, payee of a check, received it on December 1st early enough to present it for payment on that day to the drawee bank which was located in the same town. Instead of presenting it to the drawee directly, he deposited the item in another local bank on December 2d. The latter presented it to the drawee through the clearing house on December 3d, but it was not paid, the drawee having closed its doors the same day. If the check had been presented on December 2d it would have been paid, since there were enough funds in the …
Banks And Banking - Land Contract As Item For Collection Under The Bank Collection Code
Banks And Banking - Land Contract As Item For Collection Under The Bank Collection Code
Michigan Law Review
The petitioner deposited with A Bank a land contract. The bank was to collect payments thereon and remit them to the petitioner. After making two collections amounting to $100, the bank became insolvent and the petitioner sought a preferred claim against all the assets of the bank. The Bank Collection Code (sec. 13 of Act No. 240 of the Public Acts of Michigan, 1931) was the basis of his claim. The trial judge allowed him a preference as to cash assets on hand at the time the receiver took possession. Since it was doubtful whether there would be any cash …
Quasi-Contracts -- Sufficiency Of Technical Benefit
Quasi-Contracts -- Sufficiency Of Technical Benefit
Michigan Law Review
A brokerage house, the R. Co., having purchased stock on margin for the plaintiff, requested a payment of $1100 in order to protect themselves in carrying the account. Doubting the financial stability of R. Co. the plaintiff decided to transfer the account to another firm, the defendant, and accordingly delivered to R. Co. a personal check naming the defendant as payee, at the same time orally directing R. Co. to transfer the stock and check to the defendant and from them receive payment in full. R. Co., however, falsely represented that the check was really theirs and that the plaintiff …
Bills And Notes -- Non-Negotiable Because Of Reference To Trust Agreement
Bills And Notes -- Non-Negotiable Because Of Reference To Trust Agreement
Michigan Law Review
Whether certain purchasers of notes occupied a better position than the ones from whom they purchased depended upon whether the notes in question were negotiable. Each note contained the following clause: "This note is one of a duly authorized issue of notes . . . issued under and all legally entitled to the benefit of a trust indenture. . . . For a description of the rights of the holders of the notes and the terms and conditions upon which the notes are issued, reference is made to said Trust Indenture with like effect as though said Trust Indenture were …
Bills And Notes - Negotiable Despite Reference To Trust Agreement
Bills And Notes - Negotiable Despite Reference To Trust Agreement
Michigan Law Review
In an action of replevin for the recovery of stolen debenture bonds, the defense relied upon the contention that the bonds were negotiable and that they had been bought by an innocent purchaser. The bonds in terms referred to a trust agreement "for a statement of the terms under which the said debentures are issued, and the rights. and obligations of the company, of the trustee and of the respective holders of the said debentures under the said trust agreement." It was further provided in the bonds that "to the extent provided in the said trust agreement all rights of …
Bills And Notes - Holders In Due Course - Notice To A Corporation
Bills And Notes - Holders In Due Course - Notice To A Corporation
Michigan Law Review
The plaintiff, as assignee of certain negotiable bonds, brought replevin to recover the same from the defendant who had acquired them as collateral on certain loans made to the thieves. The plaintiff proved that blanket notices of the theft had been sent to a number of banks, including the defendant bank, before the bonds were accepted as collateral, thereby raising a presumption that the notice was received by the mailing clerk of the bank. The officers of the defendant trust company denied having seen the notice or having knowledge of it at the time of the acceptance. Held, since …
Bills And Notes - Acceleration Clause As Affecting Negotiability
Bills And Notes - Acceleration Clause As Affecting Negotiability
Michigan Law Review
Defendant was sued on a note containing, among other acceleration clauses, a provision that if any holder deemed himself insecure at any time, the note should become immediately due and payable. Appealing from a summary judgment against him, the defendant contended that the instrument was nonnegotiable. Held, the acceleration provisions in the instrument did not destroy its negotiability. Dart National Bank v. Burton, 258 Mich. 283, 241 N. W. 858 (1932).
Banks And Banking - Preferred Claims Of Savings Depositors - Set-Offs
Banks And Banking - Preferred Claims Of Savings Depositors - Set-Offs
Michigan Law Review
Members of the Michigan bar who have had to deal with perplexing receivership problems, growing out of the many recent bank failures, should welcome the case of Reichert v. Farmers & Workingmens Savings Bank, 257 Mich. 500, decided April 4, 1932. It involves twelve important questions in banking law, certified from the Jackson circuit court. The answers of the supreme court to these questions should serve to settle the law for the benefit of receivers and their counsel for years to come.
Mortgages -Assignment In Good Faith After Maturity Cuts Off Prior Latent Equities
Mortgages -Assignment In Good Faith After Maturity Cuts Off Prior Latent Equities
Michigan Law Review
M executed a negotiable note payable to the order of P, secured by a mortgage. After maturity, P assigned the note and mortgage without his indorsement to X for value. Y procured an assignment of these from X by fraud and in turn assigned them to Z, a purchaser without notice and for value. In Z's suit to foreclose the mortgage, X intervened, demanding the delivery of the same to himself. Held, Z's bona fide purchase cut off X's latent equity. Frank v. Brown, 255 Mich. 415, 238 N. W. 237 (1931).
Trusts - Tracing Of Assets - Preference
Trusts - Tracing Of Assets - Preference
Michigan Law Review
Public funds were unlawfully deposited in the insolvent bank. At the time the bank closed the cash in its own vault was less than the amount of public funds deposited but it did have, at the time of closing and at all times before, deposits in correspondent banks which, taken with the cash in its own vault, exceeded the amount of the public funds unlawfully deposited. Held, that the unlawful deposit of the public funds, the bank knowing them to be public funds, created a trust of those funds in the hands of the bank, which trust was impressed …
Suretyship - Revocation By Death
Suretyship - Revocation By Death
Michigan Law Review
In consideration of a promise on the part of the vendor in a land contract to accept from the purchaser the first four installments of interest in the form of four notes, the decedent agreed in writing to indorse said notes and become responsible to the vendor for their payment. The surety died before the first of the notes was to be made and indorsed. A claim was made against the estate of the surety on this writing, the trial judge finding for the estate on the ground that there was no competent evidence from which damage might be determined; …
Bills And Notes-Payee Of Note Is Holder In Due Course Unless Contrary Appears
Bills And Notes-Payee Of Note Is Holder In Due Course Unless Contrary Appears
Michigan Law Review
Defendant, who had jointly signed (ostensibly as maker) a note containing the words, "I promise to pay," was held not entitled to show by parol evidence that he was an accommodation indorser, under 2 MICH. COMP. LAWS 1929, secs. 9249, 9266 (N. I. L., sec. 17), and 9309 (N. I. L., sec. 60), the court saying, by way of dictum, that, in the absence of a contrary showing, the payee named in a promissory note payable to order is a holder in due course. Price v. Klett (Mich. 1931) 238 N.W. 253.
Bills And Notes-Payee As Holder In Due Course
Bills And Notes-Payee As Holder In Due Course
Michigan Law Review
P executed a note and securing mortgage leaving a blank for the name of the payee and mortgagee. A, P's agent, in excess of his authority, filled in the blanks with D's name and with D's knowledge. D in good faith paid full value. Held, under sec. 6055,. Mich. Comp. Laws (1915) D has no claim against P, for he is not a holder in due course. Bronson v. Stetson, 252 Mich. 6, 232 N.W. 741.
Mortgages - Equity Jurisdiction - Personal Decrees Against The Mortgagor
Mortgages - Equity Jurisdiction - Personal Decrees Against The Mortgagor
Michigan Law Review
The Michigan supreme court recently held that the jurisdiction of equity in proceedings for the foreclosure of mortgages is governed by statute, and that equity can only render a personal decree against the mortgagor where the statute expressly permits it. This view, if correct, must be recognized as an exception to the well settled doctrine that a court of equity which has obtained jurisdiction of a controversy on any ground or for any purpose, may retain such jurisdiction for the purpose of administering complete relief. Michigan has repeatedly affirmed this general doctrine.