Chemical National Bank of New York v. Havermale

Citations

• 120 Cal. 601
• 52 P. 1071
• 1898 Cal. LEXIS 816

Syllabus

<p>C/OBPOBATIONS—NATIONAL BANK—ACQUISITION OF STOCK IN OlHBB COBPOBAtions.—A national bank has no power to purchase or subscribe for the stock of another corporation, but may, as incidental to its power to loan money on personal security, in the usual course of doing such business, accept stock of another corporation as collateral, even for a previous indebtedness, and by the enforcement of its rights ag pledgee may become the owner of the collateral, and subject to liability as other stockholders.</p> <p>Id.—Ultba Vibes—Liability as Stookholdeb—Estoppel.—The acquisition by a national bank, in any other manner, of stock in another corporation, is an ultra vires act and void, and creates no liability to the creditors of the corporation whose stock was attempted to be transferred, and the bank may urge such want of power to defeat an attempt to enforce against it the liability of a stockholder, and is not estopped, hy the receipt of dividends on the stock, from setting up such want of power.</p> <p>Id.—Fedebal Question.—The question as to the power of a national bank to subscribe for, purchase, or own shares of stock in another corporation must be determined from the statutes of the United State’s, as construed by the supreme court of the United States.</p> <p>Id.—Payment by Dividends to Bank.—The payment of dividends declared on the stock of another corporation, standing in the name of the officers of a national bank, by a check drawn in favor of the bank, is not conclusive that the bank was the owner of the stock.</p> <p>Id.—Unauthobized Tbansfbb by Offioeb of Bank.—Evidence that certificates of stock in another corporation, drawn in favor of the officers of a national bank, without ever having been delivered to them, were afterward presented by one of such officers, without being indorsed, for transfer by the bank, is not sufficient to show an acquisition by the bank of the title to the stock in any mode by which it was authorized to acquire it.</p> <p>Id.—Evidence