BANKS AND BANKING - IMMUNITY OF NATIONAL BANKS FROM STATE ESCHEAT STATUTE

Authors

Spencer E. Irons, University of Michigan Law SchoolFollow

Abstract

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 the process of liquidation of a national bank as provided for in the National Banking Act. Starr v. O'Connor, (C. C. A. 6th, 1941) 118 F. (2d) 548, cert. den. sub nom. Starr v. Schram, (U.S. 1941) 62 S. Ct. 412.

Recommended Citation

Spencer E. Irons, BANKS AND BANKING - IMMUNITY OF NATIONAL BANKS FROM STATE ESCHEAT STATUTE, 40 Mich. L. Rev. 582 (1942).
Available at: https://repository.law.umich.edu/mlr/vol40/iss4/6