Lansing Drop Forge Co. v. American State Savings Bank

Defendant bank was insolvent and closed its doors December 21, 1931. At that time plaintiff had a commercial deposit of $17,479.43 in the bank. A receiver was duly appointed for the bank. In June, 1932, plaintiff filed a claim with the receiver for the amount of its deposit. This claim was allowed, but no dividends paid on it or on any other general claim. A plan of reorganization, known as “depositors’ agreement,” was drawn up, pursuant to Act No. 8, Pub. Acts 1932 (1st Ex. Sess.), and signatures of depositors, representing 92 per cent, of the bank’s deposit liability were obtained thereto.…