Vanneck v. City Bank Farmers Trust Co.

This proceeding involves the constitutional validity of and the construction to he given to subdivision 2 of section 100-b of the Banking Law.

In 1928, respondent loaned $3,400,000 on the security of a first mortgage upon the premises at the southwest corner of Fifth Avenue and 52d Street, Manhattan. Pursuant to the provisions of what was then subdivision 7 of section 188 of the Banking Law (since superseded by subdivision 2 of section 100-b), the entire beneficial interest in the bond and mortgage was from time to time apportioned to various accounts with respect to which respondent was…