Chipley State Bank v. McNeill

Reaves, Circuit Judge.

— The Pensacola State Bank became insolvent and the defendant in error was appointed receiver in December, 1918. At the time of its failure the Pensacola Bank owed the Chipley State Bank and also owned capital stock of the Chipley Bank. Of course the assets of the Pensacoula Bank, including its stock in the Chipley Bank passed to the receiver for the benefit of all its creditors upon the appointment of the receiver in December, 1913.

Thereafter, and while the receiver still held' such stock, the Chipley Bank declared a dividend on all its stock for the year 1916, but…