Shepherd v. Guernsey
New York Court of Chancery
This was an application to dissolve an injunction, which restrained the comptroller from giving a preference in payment to the holders of protested notes of an insolvent banking association, over the holders of notes of the association which had not been so protested.
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This was an application to dissolve an injunction, which restrained the comptroller from giving a preference in payment to the holders of protested notes of an insolvent banking association, over the holders of notes of the association which had not been so protested. The funds in the hands of the comptroller were the proceeds of stocks deposited with him, by the Bank of Western New-York at Rochester, for the security of all the holders of its circulating notes, according to the provisions of the general banking law of 1838. That bank stopped payment, and some of its notes were protested, and…
1Opinion of the Court
The Chancellor.
The only question raised in this case by the counsel of either party is, whether the holders of protested notes of an insolvent association, organized under the general banking law, are legally and equitably entitled to a preference in payment, out of the fund pledged to the comptroller for the payment of all the circulating notes of the bank ; or whether all the holders of its circulating notes are entitled to participate equally, and rateably, in case there is a deficiency in the fund to pay all such notes in full 1
The original act of 1838, under which this claim of…
2Cited by7 opinions
- Towle v. SwaseyMassachusetts Supreme Judicial Court · 1870
- Richardson v. HallMassachusetts Supreme Judicial Court · 1878
- Additon v. SmithSupreme Judicial Court of Maine · 1891
- Adams v. RobertsonIllinois Supreme Court · 1865
- In re the Judicial Settlement of the Account of BialostoskyNew York Surrogate's Court · 1899
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