Wheelock v. Kost

Citations

• 77 Ill. 296

Syllabus

<p>1. National banks—who liable as stockholders. Primarily, a creditor of a national bank may proceed against the party in whom the legal title to the slock is vested. Where shares of stock in a banking corporation have been hypothecated, and placed in the hands of the transferree, he will be subjected to all the liabilities of ordinary owners, for the reason the property is in his name, and the legal ownership appears to be in him.</p> <p>.3. Thus, where a party made a loan to a national bank, and made his p¡ omissory note, partly as an accommodation to the bank, to be held among their other assets, and fifty shares of its stock, equal in value to $5000, were issued to him, as security for his loans, and as indemnity against liability on his note, it was held, that he was liable to the creditors of the bank as a stockholder, whatever might be his relation to the corporators of the bank.</p> <p>3. Same—extent of stockholders’ liability. Where a decree on creditors’ bill is taken against a stockholder of a national bank, on the basis his shares of stock hear to the whole stock of the bank, there will be no error.</p> <p>4. Estoppel—to deny legality of incorporation. A stockholder of a banking corporation which is a corporation de facto, who participates in its transactions and receives dividends, will, by such acts, be estopped to insist, when sued by its creditors, that the corporation was not ¡legal. Whether the bank has been regularly organized or not, is not a defense that can be availed of by a stockholder as against & bona fide creditor, if it appears there was a corporation de facto.</p> <p>5. Insolvency—evidence of. To prove the insolvency of a banking corporation, no better evidence need be produced than a return of nulla bona, made by the sheriff upon executions issued against the bank.</p>