Schrader v. Manufacturers' Nat. Bank of Chicago

Citations

• 133 U.S. 67
• 10 S. Ct. 238
• 33 L. Ed. 564
• 1890 U.S. LEXIS 1891

Syllabus

<p>A national bank went into voluntary liquidation in September, 1873. Before that it had become liable to a state bank, as guarantor on sundry notes, made by a third person, and which were discounted for it by the state bank. In August, 1874, transactions took place between the maker of the notes and the state bank, and the person who acted as the president of the national bank, whereby the maker was released from further liability on the notes, but such acting president attempted to continue,- by agreement, the liability of the national bank as guarantor. In a suit begun in October, 1876, a judgment on the guaranty was obtained in May, 1880, by the state bank against the national bank. In a suit -brought by a creditor against the national bank and its stockholders to enforce their statutory liability for its debts, the court on an Application made in June, 1887, enquired into the liability of the stockholders to have the claim of the state bank enforced as against them, in view of the transactions of August, 1874, and disallowed that claim; Held,</p> <p>(1) It was proper to regxamine the claim;</p> <p>(2) The judgment against the bank was not binding on the stockholders, in the sense that it could not be reexamined;</p> <p>(3) The guaranty of the bank was released as to the stockholders by the release of the maker of the notes;</p> <p>(4) The rights of the stockholders could not be, affected by the acts of the president done after the bank had gone into liquidation.</p>