Hagar v. Union National Bank
Supreme Judicial Court of Maine
On facts agreed. Assumpsit to recover dividends declared by the defendants upon forty-five shares of their capital stock, owned by the plaintiff on the first day of January, 1872, and ever since; and, during all that time, standing in his name upon the books of the bank.
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On facts agreed. Assumpsit to recover dividends declared by the defendants upon forty-five shares of their capital stock, owned by the plaintiff on the first day of January, 1872, and ever since; and, during all that time, standing in his name upon the books of the bank. July 1, 1872, a semi-annual dividend of three per cent, was declared, and the plaintiff demanded the $135 thus accruing upon his shares, on the thirteenth day of August, 1872. Upon the first day of January, 1873, a dividend of four and a half per cent, was declared; and, on the second day of April, 1873, Mr. Hagar demanded…
1Opinion of the CourtVirgin, J.
There are two fatal objections to the maintenance of this action:
I. A bank has the right to hold a cash dividend as pledged for the indebtment of the shareholder to the bank.
It has been expressly decided in the supreme court of the United States, that since the National Bank act of June 3, 1864, went into effect, neither by the act itself, nor by any by-law based upon any authorized provision in the “articles of association,” can a national bank create a lien upon the shares of its stock*512holders for their indebtment to the bank. That such a lien, is contrary to the whole policy of the act is…
2Cases cited5 opinions
- Minot v. PaineMassachusetts Supreme Judicial Court · 1868
- Bank v. LanierSupreme Court of the United States · 1871
- Bullard v. BankSupreme Court of the United States · 1874
- Durant v. EatonMassachusetts Supreme Judicial Court · 1868
- Scott v. Central Railroad & Banking Co. of GeorgiaNew York Supreme Court · 1868
3Cited by4 opinions
- Terre Haute & Indianapolis Railroad v. State ex rel. KetchamIndiana Supreme Court · 1902
- Redhead v. Iowa National BankSupreme Court of Iowa · 1905
- Ford v. Ford Manufacturing Co.Appellate Court of Illinois · 1921
- Bills v. Silver King Mining Co.California Supreme Court · 1895