State v. First State Bank

Citations

• 22 N.M. 661

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Under tke common law tke king was entitled to a preference over the subject in the payment of his debts, but this right to a preference continued only so long as title to the money or property remained in the debtor. Upon divestitur'e of title the right to the preference was lost. Under section 959, Code 1915, upon the appointment of a receiver for an insolvent corporation, title to its property is divested, and the same vests in the receiver'. Hence, where a receiver has been appointed for an insolvent state bank, the state is not entitled to a preference over other creditors, as to money on deposit with said bank at the time the receiver was appointed.</p>