Parent v. Rand

In this jurisdiction a borrowing depositor in the savings department of an insolvent trust company is not entitled in the event of liquidation to set off his deposit against his indebtedness to that department. The reason for this rule is that the savings department is amenable to the law governing savings banks. Consequently it holds all claims against borrowers in the capacity of a trustee for the benefit of its depositors, and to permit a borrowing depositor under such circumstances to apply his savings deposit toward the payment of his note would be to give him a larger share of the…