Reconstruction Finance Corp. v. Farmers State Bank

STRUM, District Judge.

On March 14, 1932, appellant Reconstruction Finance Corporation loaned Farmers State Bank, a banking corporation under the laws of Texas, $45,000, evidenced by the bank’s note of that date, on which there remains unpaid $45,259.91, ■principal and interest. The note was secured by collateral having a face value of $90,000, the actual value of which is unascertained but admittedly less than $90,-000. On May 16, 1932, prior to maturity of said note, the bank suspended and its affairs were -placed in the hands of the state banking commissioner, for liquidation.

Since the bank…