Federal Savings and Loan Insurance Corp. v. Huttner

OPINION

WILL, District Judge.

Plaintiff, Federal Savings and Loan Insurance Corporation (“FSLIC”), has brought this declaratory judgment action in which it seeks a determination that it is not liable to pay defendants, and the class they represent, the amount of a dividend declared by the directors of Marshall Savings and Loan Association (“Marshall”). Marshall has, since July 3, 1951, been an FSLIC-insured institution under Title IV of the National Housing Act (“NHA”).

On April 8, 1965 Marshall was in “default” within the meaning of Section 401 (d) of the NHA, 12 U.S.C. § 1724(d), at which time…