Bramlette v. Joseph

Citations

• 111 Miss. 379
• 71 So. 643

Syllabus

<p>1. Banks and Banking. Directors. Statutory liability. Pleading.</p> <p>Code 1892, section 851, expressly provides that it shall be unlawful for a hank of deposit to lend a sum greater than one-fifth of its capital stock to any one person or firm but does not impose personal liability upon the directors assenting to or making the loan, while section 922, Code 1906, on the contrary, does not forbid a loan of more than one-fifth of'its capital stock to any one person generally, but does forbid such excessive loan being made to an officer or director and imposes personal liability upon the directors authorizing the loan.</p> <p>2. Same.</p> <p>These statutes are innovations on the common law and must be strictly construed and a creditor or party complaining must bring himself within the express terms of the statutes.</p> <p>S. Banks and Banking. Directors. Statutory liaMlity. Pleading.</p> <p>Where a bill in chancery against the directors of an insolvent bank charged upon information and belief that notes 'representing loans in excess of one-fifth of the capital of the bank made to a director after his resignation was either signed or delivered while he was a director, or that the loan had been agreed on while • he was á director, and the notes subsequently executed, this was not sufficient to show liability under Code 1906, section 922, imposing individual liability upon bank directors who authorized a loan of more than one-fifth of its capital stock to an officer or director; since the bill affirmatively shows that no loan was made during his directorship while the statute was in'force.</p>