A. M. Law & Co. v. Farmers & Merchants Bank

Citations

• 123 S.C. 1
• 115 S.E. 812

Syllabus

<p>1. Banks and Banking—Bank Examiner, While in “Control” of “Business” of Bank, May Direct Any Transaction That Could Have Been Done by Bank Before Intervention.—In view of . Civ. Code, 1912, § 2648, limiting bank examiner’s powers to possession of property and assets of insolvent banks, 27 St. at Large, p. 791, providing that bank examiner, at the bank’s request, may take possession and “control” of the property and “business” of a bank for 30 days, gave the examiner authority to direct any business transaction to be done that could have been done through the officers before the examiner’s intervention; and hence a contract for a sale of stocks owned by a bank, made by the bank under instruction of the examiner while the bank was in his control, was valid; “control” meaning superintendence, government, and “business” meaning financial dealings, buying and selling, traffic in general.</p> <p>2. Banks and Banking—Claim for Failure to Deliver Stocks While Bank in Control of Examiner is not Preferred Claim.— As a claim for damages for failure to deliver stocks sold by a bank while in control of the bank examiner could not be considered as expenses incurred in liquidating an insolvent estate, it was not a preferred claim.</p>