Wilson v. First State Bank

Citations

• 77 Kan. 589
• 95 P. 404
• 1908 Kan. LEXIS 308

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Banks and Banking — Voluntary Liquidation — Failure to Make Financial Reports — “Doing Business” — Power to Sue as a Corporation. In 1892 the First State Bank of Jetmore was chartered for all the purposes then permitted by law to banking corporations. It commenced business and continued to operate as a banking corporation until 1897. It then went into voluntary liquidation, paid off its depositors, surrendered to the bank commissioner the certificate of authority to transact business which it had obtained from him, and ceased to transact any business except to collect what it could of the debts owing to it and to distribute the proceeds among its stockholders by way of closing up its affairs. In 1905 it brought a suit upon a promissory note given to it in 1896. Held'. (1) The bank continued to be a banking corporation after the steps taken in 1897, as before. (2) The period for which the bank was chartered not having expired, no forfeiture having been suffered, and no judgment of dissolution having been rendered against it, the corporation is still in existence. (3) The bank had capacity to sue as a banking corporation when the action referred to was instituted. (4) After the bank had paid its depositors and had surrendered its certificate of authority to do business it was no longer subject to the provisions of the banking act requiring reports of its financial condition to be made to the bank commissioner. (5) After the steps taken in 1897 the bank was not “doing business” within the meaning of section 1283 of the General Statutes of 1901, requiring financial statements to be filed with the secretary of state as a condition precedent to the maintenance of an action or the recovery of a judgment. (6) The bringing of the suit referred to did not constitute “doing business” within the meaning of the statute just cited.</p>