Blackman v. Pettengill

Citations

• 25 Idaho 307
• 137 P. 182
• 1913 Ida. LEXIS 35

Syllabus

<p>State Bank — Receiver—Failure op Bank — Payment op Dividends.</p> <p>1. Under sec. 3005, Rev. Codes, the entire procedure of the payment of dividends by the receiver of an insolvent bank is left to the order of the court, bound by the requirements of law as generally applied and administered in such cases.</p> <p>2. Sec. 5900, Rev. Codes, relating to proceedings in insolvency, should be read with the provisions of secs. 65 and 66 of the banking act of 1911 (Sess. Laws 1911, pp. 405, 406), in considering the status of a secured depositor of an insolvent bank, as compared with unsecured depositors.</p> <p>3. Under sees. 65 and 66 of the banking act of 1911 (Sess. Laws 1911, pp. 405, 406), a preference is given to depositors of an insolvent bank over all other creditors, and such depositors are to be classed on an equal footing. Under this statute distribution of assets to depositors must be made ratably, and no depositor can be given any advantage by reason of collateral or other security which he may hold from the bank for his deposit.</p> <p>4. Held, that the receiver of the Boise State Bank, Limited, an insolvent bank and trust company, has no authority to pay a dividend under an order declared by the district court upon a claim filed by B., a depositor holding real estate security valued at about $12,000, and B. cannot collect dividends on the full amount of his deposit, $14,144.14, and the receiver should treat said real estate as not embraced in the general assets; B. should not be allowed to enforce his claim against the other assets, irrespective of the value of the specific security, when it is shown that B. is prosecuting the foreclosure of a mortgage given him by the bank upon said real property to seeure his deposit, and the receiver is contesting the validity of the mortgage, until that matter is determined; if the receiver is successful in that action, then B. should be entitled to receive the dividends that are paid to the other depositors; on the ot