People v. American Loan & Trust Co.

The most important question presented by the exceptions to the referee’s report is whether the preferred creditors of the dissolved corporation, who have been paid in full the principal of their claims, amounting to $705,405.01, and who, prior to its insolvency, received interest on their deposits ranging from two to four per cent, per annum, are entitled to legal interest on their respective claims. There is a balance.now in the hands of the receiver of the corporation. If the contention of the preferred creditors be sustained, the amounts payable to them as interest will more than exhaust…