First Nat. Bank v. Selden

Citations

• 120 F. 212
• 62 L.R.A. 559
• 1903 U.S. App. LEXIS 4473

Syllabus

<p>1. National Banks — Distribution of Assets in Insolvency — Holders of Outstanding Drafts.</p> <p>When a national bank has been placed In the hands of a receiver as insolvent, the federal law becomes from that moment the law of the distribution of its assets to the exclusion of the law of any state; and a second bank, which holds a deposit of funds of the insolvent bank, against which the latter has drawn drafts which have not been paid, cannot pay the same after notice, and set up the payment as a defense to an action by the receiver to recover the deposit, although by the law of the state in which the second bank is located a draft or check is held to be an assignment pro tanto of the fund on which it is drawn; since by the federal law it is not such an assignment as entitles the holder to a preference over the other creditors when the drawer has become insolvent before payment.</p>