Potter v. Fidelity & Deposit Co.

Citations

• 101 Miss. 823
• 58 So. 713

Syllabus

<p>1. Priority of State as Creditor. Statutes in derogation of sovereignty. Construction. Depositaries. Code 1906, Sec. 3485. Laws 1908, Ch. 96. Subrogation. Right of Surety.</p> <p>In the absence' of statutory or constitutional authority, the state, as sovereign, has no preferential rights in this state.</p> <p>2. Statute in Derogation of Sovereignty. Construction.</p> <p>When the state’s sovereignty is involved in any statute, statute» in derogation thereof are to be strictly construed ,in favor of the state, but the state sovereignty is not involved where the question is one of’ priority merely.</p> <p>3. Depositaries. ’ Statutes in derogation of common right. Code 1906, Sec. 3485.</p> <p>Code 1906, Sec. 3485 giviiig priority to the state over general creditors is a statute in derogation of common right, and' such-statute» are to be strictly construed as against parties, asserting claims by virtue of such statutes.</p> <p>4. Pbioeity of State as Cbeditob. Code 1906,, Sec. 3485. Laws 1908, Oh. 96.</p> <p>Sec. 3485, Code of 1906, was uot repealed or intended to be repealed by Cb. 96 of Laws of 1908. It still stands as security to the state for- all deposits of its money made by any person, in case of the insolvency of the institution where the deposit is made in all cases where any deposit is not made by virtue of its authority under the depository law of 1908. But when the state itself disposes of its public funds as is required by its depository laws, the relation of debtor and creditor is established between the state and the depository, merely, and the state must make its money, in the event of the insolvency of the depository out of its securities, and failing in this must share the assets pro rata with the other creditors.</p> <p>5. Same.</p> <p>When funds are placed by the state in a depository as provided by Laws 1908, Ch. 96, they are not “trust funds” within any meaning or purpose provided for by Sec. 3485,, Code of 1906.</p> <p>■6. Same.</p> <p>Where a b