Laidlaw v. Pacific Bank

Citations

• 6 Cal. Unrep. 849
• 67 P. 897
• 1902 Cal. LEXIS 932

Syllabus

<p>Savings Banks—Power to Contract Debts.—Act of April 11, 1862, section 10, providing that it shall be unlawful for a savings bank corporation or its directors to contract any debt or liability against the corporation for any purpose whatsoever, is to be construed in connection with the remainder of the act, which authorizes such corporation to purchase a lot and building for its business, and to employ and compensate help, and to incur other expenses, and in connection with the amendatory act of March 12, 1864, conferring on such corporations power to do a commercial banking business, buying bonds, securities, etc.; and hence the former act does not prevent the bank from incurring any liabilities whatsoever, but only those not authorized by the other legislation mentioned.</p> <p>Savings Bank.—Where There is a Finding in an Action Against the bank by a creditor that a debt of the latter is for money expended by the creditor for the use and benefit of the bank and at its request, it will be presumed on appeal that the money was expended for purposes for which the bank could incur a liability.</p> <p>Savings Bank,—Where the Debt of a Creditor of a Bank is for money expended for its benefit and at its request, it will not be heard, in an action by the creditor to recover the money, to deny liability on the ground that it could not legally be bound by a contract to pay.</p> <p>Savings Bank—Priority of Claims.—Act of April 11, 1862, section 10, providing that the assets and stock of a savings bank shall be security to depositors who are not stockholders, does not give priority to the claim of a depositor who is not a stockholder over the claim of a creditor of the bank who is also a stockholder thereof.</p>