Hope & Co. v. Board of Liquidation

Citations

• 108 La. 315

Syllabus

<p>Syllabus.</p> <p>1. The banking department of the Citizens’ Bank of Louisiana was a new creation under the Act of 1853 and the compact or- articles of association of that year, adopted in pursuance of the act.</p> <p>2. The legislation of 1853 and the compact formed a new constitution of the bank, in virtue of which the banking department never became liable for the bonded indebtedness of the State incurred in 1836 in aid of the bank.</p> <p>3. Being a new creation for the purpose of conducting a general banking business, and not being liable for the bonds of the State, it follows that the banking department had the capacity to purchase as an investment of separate funds, or in current business, the bonds in question, just as any other bank or third person could do.</p> <p>4. This being so the purchase did not extinguish the bonds by confusion and the banking department is entitled to the benefits of the funding scheme in reference to the bonds it holds, in like manner as any other person would.</p>