Attorney General Ex Rel. State Banking Com'r v. Michigan Savings Bank

In 1932, the Michigan Savings Bank of Vassar, with capital of $25,000 and surplus of $12,500, closed its doors and a receiver for it was appointed. It had cash on hand and in solvent correspondent banks of $13,156.51.

Among its depositors were the village of Vassar, for $51,829.48, intervener school district No. 2, for $1,540.76, and 10 other municipalities for an aggregate of $7,577.16. No depository bonds had been given to secure these deposits as required by law, except that of the village of Vassar.

Section 1792, 1 Comp. Laws 1929, prohibits a village from depositing' in a bank an amount in…