Fremont State Bank v. Vincent

Citations

• 112 Wash. 493
• 192 P. 975
• 1920 Wash. LEXIS 779

Syllabus

<p>Banks and Banking (1)—Insolvency-—-Stockholder’s Super-added Liability—Sale or Transfer of Stock. Under Const.', art. 12, § 4, making stockholders of banks liable for debts that “accrued while they remain such stockholders”, to the extent of the par value of the stock, a sale and transfer of stock in good faith prior to insolvency of the bank does not relieve the stockholder from obligations existing at the time of his ownership of the stock.</p> <p>Same (2)—Extent of Liability—Reissuance of Certificates of Deposit—Creation of New Debt. The superadded liability imposed upon stockholders by Const., art. 12, § 4, is not original but secondary, and in substance the liability of a surety, and a former owner of stock is not liable for an obligation incurred by a bank through the issuance of new certificates of deposit, after taking up and paying interest on the former certificates, long after he had ceased to be a stockholder, since the issuance of the new certificates was the creation of a new obligation.</p> <p>Same (1) — Extent of Liability — Assessment of Stock. A former owner of sixty of the five hundred shares constituting the capital stock of an insolvent bank is liable under the superadded liability imposed by Const., art. 12, § 4, equally and ratably, for 60/500 of the amount of obligations incurred while he was a stockholder of the bank.</p> <p>Interest (25)—Superadded Liability of Stockholder. Where demand was made upon a stockholder of an insolvent bank for payment of his superadded liability, he is liable for interest at the legal rate of six per cent from the time of such demand, upon the amount of his proportional liability found to be due.</p>