Family Savings & Loan Ass'n Shareholders' Protective Committee v. Stewart

The chancellor decreed below that the holders of “all Christmas Savings Accounts and all other similar accounts” be paid as general creditors of Family Savings & Home Loan Association, Inc., (the Association), before the distribution of any of its assets to its shareholders, and the shareholders have appealed.

The question which we must answer is whether the appellees, as the holders of Christmas Club accounts, 1 are entitled to priority in the payment of their claims over the “shareholders” of the association.

The Association was incorporated in 1955, pursuant to Code (1951), Article 23,…