Parmly v. Tenth Ward Bank
New York Court of Chancery
Motion for a receiver of the property and effects of the Tenth Ward Bank, an association for banking purposes under the act “ to authorize the business of banking,” passed April 18, 1838. The principal grounds, on which the motion was founded, were : 1. Alleged insolvency by non-payment of rent and a note for five hundred dollars held by the petitioner ; 2. Re- ^ fusal to pay debts ; 3. A violation of the then general act, in not having twelve and an half per cent, of specie…
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Motion for a receiver of the property and effects of the Tenth Ward Bank, an association for banking purposes under the act “ to authorize the business of banking,” passed April 18, 1838. The principal grounds, on which the motion was founded, were : 1. Alleged insolvency by non-payment of rent and a note for five hundred dollars held by the petitioner ; 2. Re- ^ fusal to pay debts ; 3. A violation of the then general act, in not having twelve and an half per cent, of specie on hand; and, 4. Danger to the property of the association from want of character in its officers and directors.…
1Opinion of the Court
The Vice-Chancellor :
Although the note held by the petitioner for five hundred dollars is not a note which this banking association could lawfully issue for circulation as money, yet it is prima facie evidence of an indebtedness which it was competent for-the bank to contract for some purpose incidental to the banking business ; and until it-is shown to have beén issued not for the benefit or on account of the bank, but for the private or individual benefit of the officers or persons who have put their names to the note in fraud of the banking association, it must be deemed and taken to be…
2Cited by1 opinion
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