City of New York Insurance v. Mobley

1. The decision of this court in While County Bank v. Clermont State Bank, 37 Ga. App. 268 (140 S. E. 767), is to the effect that the prohibition contained in the banking laws of Georgia (Ga. L. 1919, p. 199, art. 19, sec. 18; Park’s Code Supp. 1922, § 2280 (a) ), against a bank issuing “any certificate of deposit except in exchange for lawful money of the United States, or for checks, drafts, or bills of exchange which are the actual equivalent of such money,” is designed to prevent a bank from pledging its credit and increasing its liability to depositors by trading its certificates of…