United States Fidelity & Guaranty Co. v. Hood

The question: Has the plaintiff, as assignee of Durham County, a secured depositor creditor of the Merchants -Bank of Durham, North Carolina, the right to receive dividends on $43,950.48, the total amount of its claim as it stood, at the time the bank was closed because of insolvency? We think not, under the facts and circumstances of this case.

N. C. Code, 1931 (Michie), sec. 1334(70), in part, is as follows: “The board of commissioners is hereby authorized and empowered to select and designate annually, by recorded resolution, some bank or banks or trust company in this State as an official…