Metropolitan Trust Co. v. Jones

The principal question in this case concerns the validity of an act of the General Assembly known as the Small Loans Act. (Ill. Rev. Stat. 1941, chap. 74, par. 30, sec. 12.) Attack is made upon that portion of section 12 which prohibits a licensee thereunder from pledging any note or security given by a borrower, except with a bank authorized to transact business in Illinois under an agreement permitting the Director of Insurance to examine the papers so hypothecated. A regulation of the Insurance Department in accord with section 12 is also attacked. Appellee, a trust company, by its…