People ex rel. Nelson v. Chicago Lawn State Bank

I

On June 9, 1931, the Chicago Lawn State Bank suspended business and its books and assets were turned over to the auditor of public accounts. The auditor appointed a receiver and the appointment was later approved by the court. Joseph B. McDonough, the county treasurer of Cook county, had on deposit with the bank when it closed $100,000, which had been placed with it under a written agreement that the deposit would draw interest at the rate of 2½ per cent. This deposit was secured by a bond of the Constitution Indemnity Company of Philadelphia, executed January 9,1931. When the bank failed,…