Commissioner of Banking v. Chelsea Savings Bank
Michigan Supreme Court
Appeal from Washtenaw; Kinne, J. Bill by Henry M. Zimmerman, commissioner of banking, against the Chelsea Savings Bank and W. W. Wedemeyer, receiver, to liquidate the assets of defendant bank. On petition the American Surety Company of New York was permitted to intervene and present its claim. From a decree dismissing the petition, petitioner appeals.
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Appeal from Washtenaw; Kinne, J. Bill by Henry M. Zimmerman, commissioner of banking, against the Chelsea Savings Bank and W. W. Wedemeyer, receiver, to liquidate the assets of defendant bank. On petition the American Surety Company of New York was permitted to intervene and present its claim. From a decree dismissing the petition, petitioner appeals. In proceedings to liquidate the assets of the Chelsea, Savings Bank, the American Surety Company of New York, upon its petition, was permitted to intervene, and the receiver was ordered to answer said petition. The petitioner prayed for an order…
1Opinion
ON REHEARING.
Ostrander, J.
We said in the foregoing opinion, concerning the question of the prerogative right of the State as creditor to be preferred to other creditors of the debtor:
“The question is not presented for decision in this case, unless, assuming the right to exist, the intervening surety may insist upon the exercise of the right by the State.”
We proceeded then to apply the rule that at the common law the right of the sovereign to priority over other creditors of a debtor was one which must be asserted before the assets of the debtor, had passed beyond his control. On the…
2Cases cited3 opinions
- Central Trust Co. v. New York City & Northern RailroadNew York Court of Appeals · 1888
- State v. WilliamsCourt of Appeals of Maryland · 1905
- In re the Accounting of GinsburgNew York Supreme Court · 1899