Bank Commissioners v. Bank of Buffalo
New York Court of Chancery
These cases came before the court upon the petitions of the bank commissioners for injunctions, and for the appointment of receivers of the property and effects of the defendants, under the provisions of the 18th section of the safety fund act and of the article of the revised statutes relative to proceedings against corporations in equity.
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These cases came before the court upon the petitions of the bank commissioners for injunctions, and for the appointment of receivers of the property and effects of the defendants, under the provisions of the 18th section of the safety fund act and of the article of the revised statutes relative to proceedings against corporations in equity. One specific ground of complaint stated in the petition against each corporation was, that the bank had violated its charter and subjected itself to this proceeding by making loans and discounts to its directors, to an amount exceeding one third of its…
1Opinion of the Court
The Chancellor.
It is not denied by the counsel for the Bank of Buffalo that there has, as to that bank, been an actual violation of the provision of the revised statutes which prohibits the directors of a monied corporation from making loans or discounts to the directors of the corporation, or upon paper on which they or any of them are responsible, to an amount exceeding in the aggregate one third of the capital stock of the company. (1 R. S. 590, § 1, sub. 9.) It is insisted, however, in behalf of all these banks, that this is not such a violation by the corporation of its act of…
2Cases cited1 opinion
- Bronson v. MannNew York Supreme Court · 1816
3Cited by18 opinions
- Folger v. Columbian InsuranceMassachusetts Supreme Judicial Court · 1868
- Petrogradsky Mejdunarodny Kommerchesky Bank v. National City BankNew York Court of Appeals · 1930
- People v. . KnappNew York Court of Appeals · 1912
- Kincaid v. . DwinelleNew York Court of Appeals · 1875
- People ex rel. Attorney-General v. Dashaway Ass'nCalifornia Supreme Court · 1890
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