Cont'l Bldg. & Loan Ass'n v. Superior Court of the State in and for S.F.

Citations

• 163 Cal. 579

Syllabus

<p>Bankrupt—Meaning Under Federal Statute.—A person is a bankrupt within the meaning of the federal statute (1 Fed. Stats. Ann. Supp. 1912, p. 464), only when he has been guilty of one or another of the forbidden acts whose commission stamp him as a bankrupt.</p> <p>Id.—State mat Prevent Conduct op Business por Acts not Amounting to Bankruptcy.—A state may, for good reasons of its own, prevent a person or corporation from conducting business, and in so preventing it take control of its affairs, terminate its business, and pay its creditors, for acts entirely foreign to and absolutely without • the contemplation of bankruptcy.</p> <p>Id.—State Procedure Analogous to Federal—Proceeding not in Bankruptcy.—If the state does so for acts not within the contemplation of the bankruptcy law, it does not follow that because the procedure which it adopts for the payment of creditors is similar to or identical with the procedure adopted in case of bankruptcy, therefore the proceedings are in bankruptcy.</p> <p>Id.—Building and Loan Commissioner’s Act—Operation not Suspended by Bankruptcy Act.—The state act known as the Building and Loan Commissioner’s Act, while in certain features a bankruptcy act, contains provision entirely foreign to the National Bankruptcy</p> <p>Act, or to the legal concept of bankruptcy, and the whole operation thereof is not suspended by virtue of the federal statute.</p> <p>Id.—Proceeding in State Court—Liquidation op Building and Loan Association—Finding op Insolvency or Bankruptcy—Suspension or Continuance op Proceeding.—In a proceeding instituted under section 9 of the State Act for an order of the superior court confirming the action of the building and loan commissioner in taking charge of the affairs of a building and loan association preparatory to their liquidation, if the investigation which that court is authorized to conduct shall result in a finding of bankruptcy or insolvency within the meaning of the Federal Act, then, under such finding