Long v. Superior Court of San Francisco

Citations

• 102 Cal. 449
• 36 P. 807
• 1894 Cal. LEXIS 667

Syllabus

<p>Insolvent Bank—Statutory Jurisdiction of Superior Court.—The jurisdiction of the superior court in a proceeding upon the information of the attorney general, upon complaint of the board of bank commissioners against an insolvent bank, is derived only from the statute under which it claims to act, and its powers are limited by the statute, and in the use of this power its jurisdiction is limited and special.</p> <p>Id.—Injunction Against Further Business.—The superior court may, upon finding that a bank is insolvent, and that it is unsafe for the parties interested in the banking corporation to continue to transact business, adjudge and decree that the bank, its officers and agents, be enjoined and prohibited from the transaction of any further new business.</p> <p>Id.—Winding Up of Insolvent Bank—Bower of Bank Commissioners —Bights of Directors—Construction of Bank Act.—Under section 11 of the Bank Act (Stats. 1877-78, p. 740; 1886-87, p. 90), the officers of the bank who are personally cognizant of the business, though prohibited from doing any further new business, are allowed by the statute to liquidate the business in the interest of the creditors, in the absence of proof of fraud or dishonesty upon their part, and the superior court has no statutory authority to oust the directors of the bank from the possession of its assets, or deprive them of the management of its affairs during its liquidation, or to order the bank commissioners to settle and liquidate the affairs and business of the corporation, subject to the supervision and control of the court.</p> <p>Id.—Writ of Brohibition.—A writ of prohibition will issue from the supreme court to prevent the superior court from carrying into execution an order that the affairs of an insolvent bank shall be settled by the bank commissioners under the supervision and control of the court.</p>