First National Bank v. Clements

The receivers instituted a suit in equity against the First National Bank, the purpose of which was to have the court declare illegal and void a certain loan of $20,000 made by the First National Bank to the Chatham Savings Bank because, as the receivers claimed, the loan was made in violation of section 4149(50) of the Code. The court by its decree sustained the contention of the receivers and held the loan invalid, but permitted the First National Bank to offset against said $20,000 the sum of $6,561.83, the amount the Chatham Savings Bank had on deposit in the First National Bank at the…