Sneve v. Hagen

The right of bank creditors to look to' stockholders to the extent.of the amount of the par value of their stock is embedded in the Constitution of this state. Article 18, § 3. The liability thus imposed upon stockholders is direct and primary and cannot be varied or diminished by legislative act. Smith v. Olson, 50 S. D. 81, 208 N. W. 585. The liability is not an asset of the bank and the bank can neither collect, compromise, nor release it. Smith v. Goldsmith, 50 S. D. 1, 207 N. W. 977; Farmers’ State Bank v. Erickson, 54 S. D. 345, 223 N. W. 306. It is doubtless competent for the…