Bank of Fort Madison v. Alden

Citations

• 129 U.S. 372
• 9 S. Ct. 332
• 32 L. Ed. 725
• 1889 U.S. LEXIS 1696

Syllabus

<p>A stockholder in an insolvent corporation, who has paid his stock subscription in full by a transfer of a tract.of land, in good faith, at an agreed value, for the use of the company’s business, is not liable in equity to a creditor of the'corporation who had knowledge of and absented to the transaction at the time when it took place, solely upon the ground that the land turned oht to be of less value than was agreed upon.</p> <p>The doctrine that .the distribution of a trust fund of a corporation to the individual stockholders upon .their resolution does not deprive a creditor, not consenting thereto, of his right to compel the application of the fund to the payment of the debts of the corporation, cannot be. invoked by a creditor who is a stockholder consenting to the distribution and participating in the appropriation.</p> <p>An indorsement of the note of a third party by 'one member of a partner-' ship in the firm’s name, by way of security to a bank, without the knowledge or consent of the other partner, cannot be enforced as a liability against the estate of the latter after his decease.</p>