Smith v. Texley

On March 30, 1926, Farmers’ Exchange Bank of Toronto suspended business and was taken over by the superintendent of banks for the purpose of liquidation. A plan of reorganization and agreement was adopted by depositors representing more than 80 per cent of the deposits at the date of suspension, and, upon a petition setting forth the facts, the superintendent of banks applied to the circuit court for an order to show cause why the bank should not be reinstated as a solvent corporation under the reorganization plan and agreement, and why all other depositors should not be held subject to the…