First National Bank of Seattle v. Mansfield State Bank

When the insolvent state hank involved herein suspended payment, it was indebted to appellant upon a net indebtedness of $126,631.61, for a part of which, $30,000, it had collateral security aggregating $39,647.27, and at the time of suspension had on deposit with appellant the sum of $2,559.23. Appellant filed a claim with the banking department, liquidating the insolvent’s estate, for the net sum of $126,631.61, not deducting any of the collateral or the proceeds thereof. The claim was rejected and appellant brought this suit.

The sole question involved is the right of appellant to have its…