Kelsey v. Republic Savings & Loan Ass'n

Citations

• 110 F. 40
• 1901 U.S. App. LEXIS 4836

Syllabus

<p>FOREIGN Corporation — Insolvency—Receivers— Assets in Hands of State Treasurer,</p> <p>Tiie. Republic Savings & Loan Association, a corporation of New York, having- become insolvent, proceedings were there instituted for its dissolution, and the forfeiture of its rights, franchises and privileges, in the course of which proceedings temporary receivers were appointed. Subsequently the temporary receivers were appointed by this court ancillary receivers for Delaware, and applied for a rule on the state treasurer of Delaware to show cause why he should not be authorized and directed to assign to them certain securities, to be held subject to the order of the court. These securities had been assigned to the state treasurer pursuant to an act of the general assembly as the con-ditidn on which the corporation should be permitted to transact business in Delaware. By the act it was provided that such securities were to be held “for the benefit of the shareholders * * * residing •in this state”; that they were to remain with the state treasurer “in trust to secure any judgment” which should be obtained against the ■corporation upon which execution might lawfully be issued against it; and that the state treasurer and his successors in office should “receive ’ and thereafter retain such deposit under this act in trust for the purpose hereof,” with power in the corporation to withdraw such securities only pn “substituting therefor others of equally good character and value to the satisfaction of the state treasurer.” It did not appear that the corporation had been dissolved. Held, that the application for the rule must be denied.</p> <p>(Syllabus by the Court.)</p>