Wilson v. Book

Citations

• 13 Wash. 676
• 43 P. 939
• 1896 Wash. LEXIS 117

Syllabus

<p>BANKS—DOUBLE LIABILITY OF STOCKHOLDERS—ENFORCEMENT — RECEIVERS.</p> <p>The additional liability imposed by art. 12, § 11 of the constitution upon stockholders of banking corporations to the extent of the amount of their stock is a secondary, and not a primary, liability, as the stockholders occupy the position of sureties, and creditors must first attempt to enforce their claims against the corporation as the principal debtor.</p> <p>The fact that a banking corporation is insolvent and in the hands of a receiver will not entitle creditors to proceed against its stockholders upon their secondary liability, but such liability constitutes a part of the receiver’s trust fund, .which the court is authorized to direct him to enforce for the benefit of all the creditors.</p>