Tremont Trust Co. v. Baker

The plaintiff is a trust company organized under the laws of the Commonwealth, doing a general banking business, and maintaining a savings department under St. 1908, c. 520 (see now G. L. c. 172, §§ 60-72). On February 17, 1921, the commissioner of banks took possession of the property of the Tremont Trust Company and is prosecuting this action for its benefit. G. L. c. 167.

The defendant was a depositor in the general banking department of the plaintiff. It loaned to him from the general funds of the trust company, $25,000, upon his promissory note, secured by collateral, and payable on…