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 the defendant bank agreed to a sixty per cent reduction in their claims, and the bank was reopened on that basis. The plaintiff did not consent to the plan, and after the reopening sued the bank for $2,000. Held, that plaintiff should recover the entire sum of $2,000 on the ground that the statute has no application to a trust fund placed in a bank for a special purpose. Such funds are not the property of the bank, and do not come under the control of the depositors seeking the reopening of the bank. Equity Elevator & Trading Co. v. Farmers' & Merchants' Bank, (N. D. 1933) 250 N. W. 529.
BANKS AND BANKING - REORGANIZATION UNDER ENABLING STATUTES REQUIRING LESS THAN UNANIMOUS AGREEMENT - EFFECT ON SPECIAL DEPOSITS,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol32/iss5/10