State Bank v. Kirk

Citations

• 216 Pa. 452
• 65 A. 932
• 1907 Pa. LEXIS 840

Syllabus

<p>Banks and banking — Corporation—Receivers—Directors—Promissory note.</p> <p>Where the directors of a bank, the capital of which is impaired, make their promissory notes to the bank under an understanding with the president and cashier that the notes are to be carried by the bank in order not to show overdue paper, and that the notes are to be paid out of the profits arising from the business, such directors cannot set up want of consideration to defeat an action instituted by a receiver, subsequently appointed, to collect the notes.</p> <p>The receiver represents the corporation, but he also represents its creditors, and it is his duty to secure all of the assets available for their payment.</p>