State ex rel. Davis v. Farmers State Bank

In this action the First National Bank of Leigh seeks the allowance against the depositors’ guaranty fund of a claim on a certificate of deposit, issued by the Farmers State Bank of Allen, now insolvent and in the hands of a receiver. The defense interposed by the receiver of the failed bank is that the certificate of deposit was originally issued to a stockholder of the failed bank and represents a loan made to the bank and not a deposit, within the meaning of the statute relating to the depositors’ guaranty fund. The trial resulted in a finding and judgment allowing the claim as against the…