BANKS AND BANKING - STATUTORY LIABILITY OF DIRECTORS OF INSOLVENT BANK FOR ISSUING RENEWAL CERTIFICATE OF DEPOSIT

Authors

Abstract

The plaintiff renewed certain certificates of deposit with the defendant bank. When each renewal was issued the bank was "unsafe or insolvent," and the directors knew or had good reason to know it to be so. This was not the situation when the original certificates were issued. The plaintiff based his right of recovery from the directors of the bank upon Gen. Stat. 1923 (2 Mason, 1927) sec. 10407, which makes it a penal offense for the officers or directors of a bank to receive deposits knowing the bank is "unsafe or insolvent." Plaintiff recovered in the lower court. Held, the renewal of the certificates of deposit was not the equivalent of new deposits within the meaning of the statute. Barsness v. Tiegen (Minn. 1931) 238 N.W. 161.

Recommended Citation

BANKS AND BANKING - STATUTORY LIABILITY OF DIRECTORS OF INSOLVENT BANK FOR ISSUING RENEWAL CERTIFICATE OF DEPOSIT, 30 Mich. L. Rev. 617 (1932).
Available at: https://repository.law.umich.edu/mlr/vol30/iss4/13