Hood Ex Rel. North Carolina Bank & Trust Co. v. North Carolina Bank & Trust Co.

Will the statutory liability of stockholders in a bank be enforced against one who appears as a stockholder only by reason of the faithlessness of the bank? The answer should be, No.

We have held that fraud on the part of an officer of a bank in the sale of its stock will release the purchaser of this statutory liability. Hood, Comr., v. Martin, 203 N. C., 620, 166 S. E., 793. The conclusion rests upon the principle that the statute existent at the time enters into and becomes a part of the contract of stock subscription, and that no contract, or its complement, will be enforced which is…