Federal Deposit Ins. v. Billings County

SANBORN, Circuit Judge.

The Stockmen’s State Bank of Medora, North Dakota, a state bank insured by the Federal Deposit Insurance Corporation (hereinafter referred to as the “Corporation”) under the provisions of § 12B of the Federal Reserve Act,1 became insolvent and closed its doors on September 24, 1938. Shortly thereafter the Corporation became the receiver of the Bank. The County of Billings had been a depositor of the bank. At the time the bank closed, the County had a general checking account with a balance of $4,306.72, as well as a draft in transit for $2,030, or a total of $6,336.72,…