Morehead Banking Co. v. Tate

Citations

• 30 S.E. 341
• 122 N.C. 313
• 1898 N.C. LEXIS 253

Syllabus

<p>Action on Bond — Corporation—Branch Bank — Bond of Cashier of Bank — Validity—Defences.</p> <p>1. Whether a Banking Company, chartered to do business in a certain place and without express authority to establish and conduct a branch at another place, can do so, is a matter for the State, through the Attorney General, to haye determined by an action to vacate its charter.</p> <p>2. Where a Banking Company established a branch bank in a place other than that where the corporation was chartered to conduct its principal place of business, and placed it in charge of a cashier who gave bond for the faithful discharge of his duties ; Held, in an action on such bond, that the defendants could not plead as a defense that the bond was invalid because the company had no power to establish such branch.</p> <p>3. Where, in the trial of an action on a bond executed to the “ Morebead Banking Company of Burlington,” and given by the defendants to the Morehead Banking Company, the jury find that the bond was given for the benefit and protection of the latter, and there was no appeal from such finding; Held, that equity will treat the words “of B” as surplusage.</p> <p>4. A bond given by a cashier of a branch bank for the faithful performance of his duties is not void by statute nor is it against public morals because the parent corporation may not have had the express authority to establish a branch bank.</p>