Western National Bank v. Armstrong

Citations

• 152 U.S. 346
• 14 S. Ct. 572
• 38 L. Ed. 470
• 1893 U.S. LEXIS 2417

Syllabus

<p>Tbe borrowing of money, by a.bank, though not illegal, is so much out of the course of ordinary and legitimate banking business as to require those making the loan to see to it that the officer or agent acting for the bank had special authority to borrow money.</p> <p>Whether a vice-president of a national bank who had, without authority from the board of directors, paid into the bank a large sum of money and received certificates of paid-up stock for a still larger amount could, on the subsequent insolvency of the bank without ratification of such increase, recover back his subscription money, or was to be treated as a general creditor, is a question which a court cannot settle in an action to which he is not a party.</p>