(Download) "State v. American Bank & Trust Co." by Supreme Court of Montana ~ eBook PDF Kindle ePub Free
eBook details
- Title: State v. American Bank & Trust Co.
- Author : Supreme Court of Montana
- Release Date : January 15, 1926
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 62 KB
Description
Banks and Banking ? Insolvency ? Bills and Notes ? Pledges ? Unauthorized Sale by Pledgee ? Effect on Claim of Buyer Against Insolvent Bank ? Statutes and Statutory Construction. Banks and Banking ? Insolvency ? Bills and Notes ? Pledges ? Pledgee not Authorized to Sell, but may Only Collect on Maturity. 1. Under section 8312, Revised Codes of 1921, held that where a bank had pledged to another bank promissory notes owned by it, as security for indebtedness due, the latter bank was without authority to sell the collateral upon insolvency of the former, but was bound to hold and collect it when due and apply the proceeds to the payment of the debt secured. Same ? Insolvency ? Disallowance of Claim of Buyer of Pledged Notes Sold Contrary to Law Proper, When. 2. A bank, before becoming insolvent, to secure an indebtedness of $70,000 due another bank, pledged as security for the debt negotiable notes of a face value much greater than the amount of the debt, they being indorsed and delivered by it unconditionally before maturity. After the debt had been reduced to $40,000 the creditor bank sold the remaining securities for $50,000 without, however, applying that amount to the debt. They were thereafter again sold for $41,000, and the purchaser after having collected $42,000 presented a claim to the receiver of the debtor bank amounting to $137,855.62 as due on the notes not collected, for allowance, who rejected it. Held, that the district court, upon petition to it for allowance of the claim, properly denied it. Statutory Construction ? Statute of Another State ? Failure to Plead or Prove ? Presumption ? Rule. 3. Where a statute of another state is invoked by a party but neither pleaded nor proved, the presumption obtains that the statute of that state on the subject is the same as that of Montana. Promissory Notes ? Collateral ? Limit of Recovery Against Indorser. 4. An endorsement of negotiable paper by way of collateral security does not authorize any recovery against the pledgor beyond the amount due upon the principal debt. - Page 446 Same ? Pledges ? Contract Under Which Pledge Made not Introduced in Evidence ? Presumption. 5. Where the contract under which a bank delivered negotiable paper as security for a debt due the pledgee which was thereafter sold by the latter contrary to the provisions of section 8312. Revised Codes of 1921, was not put in evidence in a proceeding against the receiver of the pledgor bank by the purchaser to have his claim against the bank allowed, it will be presumed that the contract was not in contravention of the statute.
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