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Full-Text Articles in Law

Banks And Banking - Bank Stock Holding Company As Fraud On Double Liability Statute Dec 1934

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 …


Trust Preferences Of Depositors In Bank Insolvencies In West Virginia, R. E. Hagberg Dec 1934

Trust Preferences Of Depositors In Bank Insolvencies In West Virginia, R. E. Hagberg

West Virginia Law Review

No abstract provided.


Parent And Child--Effect Of Payment By Bank Of Child's Deposit To Parent Not A Legal Guardian, R. Doyne Halbritter Dec 1934

Parent And Child--Effect Of Payment By Bank Of Child's Deposit To Parent Not A Legal Guardian, R. Doyne Halbritter

West Virginia Law Review

No abstract provided.


Bills And Notes - Holder's Right On Contract To Pay Checks Dec 1934

Bills And Notes - Holder's Right On Contract To Pay Checks

Michigan Law Review

Defendant bank agreed to honor checks drawn by a cattle buyer and carry them as cash items until funds were deposited from sales of stock. During an illness of the buyer the bank authorized buyer's agent to continue the practice, without informing said agent of large overdrafts on the account. The agent ordered the bank to draw a sight draft on a Chicago commission house and credit it to the account for the purpose of covering, among others, a check given to plaintiff, who apparently knew nothing of the arrangement between the drawer and drawee. The bank, however, applied the …


Banks And Banking-Pledging Assets Nov 1934

Banks And Banking-Pledging Assets

Indiana Law Journal

No abstract provided.


Liability Of Banks Issuing Letter Of Credit When Good Fail To Comply With Documentary Description, Muriel A. Mawer Oct 1934

Liability Of Banks Issuing Letter Of Credit When Good Fail To Comply With Documentary Description, Muriel A. Mawer

Washington Law Review

The decision of the United States Circuit Court of Appeals (Ninth Circuit) in the case of Contmnental Natwnal Bank v. National City Bank has reopened the question which received much attention in the legal and commercial periodicals following the writing of the opinions in O'Meara v. National Park Bank and Laudisi v. American Exchange Bank as to the liability of the issuing bank when the goods do not measure up to the description contained in the documents accompanying the draft drawn under the letter of credit. It seems that the problem can be best understood by examining the various situations …


Banks And Banking--Reorganization Of Insolvent Banks By Banking Commissioner, Charles W. Caldwell Jun 1934

Banks And Banking--Reorganization Of Insolvent Banks By Banking Commissioner, Charles W. Caldwell

West Virginia Law Review

No abstract provided.


Banks And Banking--Holder Of Draft Paid For By Check On Issuing Bank As Preferred Claim Upon Drawer's Insolvency Jun 1934

Banks And Banking--Holder Of Draft Paid For By Check On Issuing Bank As Preferred Claim Upon Drawer's Insolvency

Michigan Law Review

A depositor presented his own check to his bank and received in exchange a New York draft drawn by the bank payable to a third person. The drawer bank was closed and the draft was dishonored. The depositor redeemed the draft and sought to establish a preferred claim against the bank's assets. In Fulton v. Baker-Toledo Co. the court held that a trust existed in favor of the depositor, under an Ohio statute which declares that when a check drawn by a depositor is presented to his bank for "collection and payment," and such check is charged against the depositor's …


Banks And Banking-Disposition Of Funds In Hands Of Sub-Agent Collection On Insolvency May 1934

Banks And Banking-Disposition Of Funds In Hands Of Sub-Agent Collection On Insolvency

Indiana Law Journal

No abstract provided.


Bills And Notes-Accommodation Maker-Holder For Value May 1934

Bills And Notes-Accommodation Maker-Holder For Value

Indiana Law Journal

No abstract provided.


Banking Reform By Statute, Robert G. Rodkey May 1934

Banking Reform By Statute, Robert G. Rodkey

Michigan Law Review

The lamentable failure of our banking system to function satisfactorily in the performance of its duties to the public raises at the outset two kinds of questions. Is there something fundamentally unsound about the structure of our banking machinery or does the trouble reside merely in a lack of understanding on the part of bankers of the proper management of the detailed activities in which banks necessarily engage? Or may the unsatisfactory result be ascribed to a combination of these two alternatives? The position taken in this paper is that the structure of our banking system is inherently unsound and …


Federal Housing And Home Loan Legislation And Its Consequences, Ernest M. Fisher May 1934

Federal Housing And Home Loan Legislation And Its Consequences, Ernest M. Fisher

Michigan Law Review

The laissez-faire policy characteristic of both federal and state policy prior to 1932 in connection with housing was first departed from in a provision in the "Emergency Relief and Construction Act of 1932," passed by the 72nd Congress just before adjournment in July. This provision authorized the Reconstruction Finance Corporation to "make loans to corporations, formed wholly for the purpose of providing housing for families of low incomes, or for reconstruction of slum areas, which are regulated by state or municipal law as to rents, charges, capital structure, rate of return, and areas and methods of operation, to aid in …


Banks And Banking - Bank Collection Code - Preference For Certified Check On Drawee Bank's Insolvency May 1934

Banks And Banking - Bank Collection Code - Preference For Certified Check On Drawee Bank's Insolvency

Michigan Law Review

The petitioner accompanied a bid on construction work with two certified checks drawn on the M Bank and payable to the government. On rejection of the bid the checks were returned, but in the meantime the drawee bank had been closed. The petitioner presented the checks to the receiver of the defunct bank who refused to honor them as preferred claims. An Illinois statute provided that when a bank has presented to it for payment an item drawn upon such bank, and such bank shall fail after having charged such item to the account of the drawer but without having …


Banks And Banking -- Relation Of Bank To Depositor Of Checks Unqualifiedly Indorsed -- Set-Off Against A Failing Correspondent Bank May 1934

Banks And Banking -- Relation Of Bank To Depositor Of Checks Unqualifiedly Indorsed -- Set-Off Against A Failing Correspondent Bank

Michigan Law Review

Checks drawn on the M bank of another city were deposited by the holders in the D bank pursuant to an agreement that "in receiving and handling items for deposit or collection . . . this bank acts only as depositor's collecting agent and assumes no responsibility beyond the exercise of due care. . . . It may decline to honor or pay checks drawn against conditional credits." The checks were unqualifiedly indorsed. The D bank credited each depositor's account and forwarded the checks to M bank which charged the accounts of the drawers and sent its draft to D …


Constitutional Law-Mortgage Moratorium Apr 1934

Constitutional Law-Mortgage Moratorium

Indiana Law Journal

No abstract provided.


Mortgages--Reinstatement Of Prior Mortgage As Against Intervening Encumbrance--Release Of Prior Lien By Mistake, Morris F. Funt Apr 1934

Mortgages--Reinstatement Of Prior Mortgage As Against Intervening Encumbrance--Release Of Prior Lien By Mistake, Morris F. Funt

West Virginia Law Review

No abstract provided.


Banks And Banking - Reorganization Under Enabling Statutes Requiring Less Than Unanimous Agreement - Effect On Special Deposits Mar 1934

Banks And Banking - Reorganization Under Enabling Statutes Requiring Less Than Unanimous Agreement - Effect On Special Deposits

Michigan Law Review

The plaintiff issued drafts to the defendant bank under a special agreement that they were to cover certain checks already cashed or to be cashed. When a balance of such drafts stood at $2,000 in favor of the plaintiff, the defendant bank became insolvent. A North Dakota statute provided that if eighty per cent of the deposit creditors agreed to a plan of reorganization, and such plan was approved by the state bank examiner and the secretary of the guarantee fund commission, it was to be held binding on all other unsecured creditors. Eighty per cent of the depositors of …


Banks And Banking - Public Moneys As Preferred Claims Mar 1934

Banks And Banking - Public Moneys As Preferred Claims

Michigan Law Review

The State claims a preference in the assets of an insolvent bank on the basis of sovereign prerogative. Held, that the State has no preference now because the prerogative right has been abrogated: first, by the passing of a comprehensive state banking law; and second, by a constitutional provision giving bill holders of insolvent banks preference in payment over all other creditors. Fry, State Treasurer v. Equitable Trust Co., 264 Mich. 165, 249 N. W. 619 (1933). (Potter and McDonald, JJ., dissenting).


Right Of A Bank To Pledge Its Assets As Security For A Public Deposit Feb 1934

Right Of A Bank To Pledge Its Assets As Security For A Public Deposit

Indiana Law Journal

No abstract provided.


Usury--Insurance--Requiring Borrower To Take Life Insurance Policy To Be Used As Collateral, R. E. Hagberg Feb 1934

Usury--Insurance--Requiring Borrower To Take Life Insurance Policy To Be Used As Collateral, R. E. Hagberg

West Virginia Law Review

No abstract provided.


The Sale Of Collateral Security By The Pledgee Thereof After The Invention Of The Bankruptcy Of The Pledgor, Richard Robinson Mcginnis Jan 1934

The Sale Of Collateral Security By The Pledgee Thereof After The Invention Of The Bankruptcy Of The Pledgor, Richard Robinson Mcginnis

Indiana Law Journal

No abstract provided.


Banks And Banking-Payment By Savings Bank To Other Than Depositor Jan 1934

Banks And Banking-Payment By Savings Bank To Other Than Depositor

Michigan Law Review

The plaintiff, depositor in a savings bank, sued the bank to recover for a payment made, upon presentation of the passbook together with a forged receipt, to one known to have previously acted as the depositor's agent. In order to protect itself in such a case the bank had provided the following bylaw: "The passbook shall be the voucher of the depositor, and the possession of the passbook shall be sufficient authority to the bank to warrant any deposit or payment made or entered therein." Held, the bank was liable to the depositor, despite the by-law, as it was …


Bills And Notes-Check Payable To A Party Under Assumed Name Jan 1934

Bills And Notes-Check Payable To A Party Under Assumed Name

Michigan Law Review

M appeared at the office of the B building association, represented himself as W and requested a loan to be secured by a mortgage upon property owned by W. After checking the land records and also the address given by M, B drew a check on the plaintiff bank, payable to W, and sent it to the address which M had given. M removed the check from the mail, endorsed W's name and deposited it in the defendant bank. Upon the discovery of the fraud, plaintiff bank restored the amount of the check to B's …


Bills And Notes - Incorporation By Reference - Clause In Mortgage Limiting Bondholder's Right To Sue On Bond Jan 1934

Bills And Notes - Incorporation By Reference - Clause In Mortgage Limiting Bondholder's Right To Sue On Bond

Michigan Law Review

Plaintiff, a holder, sued for the principal of and interest on matured bearer bonds which were part of an issue secured by a trust mortgage. Each bond, which was otherwise negotiable, recited that it was secured by a mortgage, "to which indenture reference is hereby made for a statement of the rights of the holders of said bonds." The mortgage provided that all rights of action on the bonds were vested in the trustee and that no bondholder could sue on the primary indebtedness until he had fulfilled certain prerequisites relative to giving the trustee an opportunity to sue. These …


Constitutional Law - Emergency Banking Act - Delegation Of Power Jan 1934

Constitutional Law - Emergency Banking Act - Delegation Of Power

Michigan Law Review

Defendant was indicted in two counts: (1) for failure to file a return in respect to gold bullion held by him, and (2) for holding over $200,- 000 in gold bullion without a license, in violation of the Presidential Order of August 28, 1933, issued by authority of the Emergency Banking Act of March 9, 1933. This Act declared an emergency to exist, by Title I, sec. 2 amended the Trading with the Enemy Act by authorizing the President "during time of war or during any other period of national emergency declared" by him to regulate or prohibit (inter …