Oakland County v. Allen

On May 8,1931, plaintiff had $128,000 on deposit in the Birmingham Savings Bank. Defendants, being directors of the bank, were sureties on a $65,000 bond given by the bank to secure repayment of plaintiff’s deposit of public funds as required by statute. 1 Comp. Laws 1929, §§ 1193-1202 (Stat. Ann. §§ 5.531-5.540). On December 16, 1931, the Birmingham Savings Bank entered into an agreement for the liquidation of its affairs by the First National Bank of Birmingham. Notice of this transaction was sent to all the Savings Bank depositors ; and on December 28, 1931, the transaction between the two…