People v. Mechanics & Traders' Savings Institution
New York Court of Appeals
Appeal by William J. Best, receiver of The Mechanics and Traders’ Savings Institution, from so much of an order of the General Term of the Supreme Court, in the third judicial department, as reversed a portion of order of Special Term, and directed William J. Best, the receiver of said institution, to pay in full certain judgments rendered against him in favor of William H. Sistare.
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Appeal by William J. Best, receiver of The Mechanics and Traders’ Savings Institution, from so much of an order of the General Term of the Supreme Court, in the third judicial department, as reversed a portion of order of Special Term, and directed William J. Best, the receiver of said institution, to pay in full certain judgments rendered against him in favor of William H. Sistare. (Reported below, 28 Hun, 375.) This institution was incorporated as a savings bank by chapter 368, Laws of 1852. Mr. Sistare was a New York broker, and in 1872, the savings institution employed him as such broker…
1Opinion of the CourtAndrews, J.
The primary relation of a depositor in a savings bank, to the corporation, is that of creditor and not that of a beneficiary of a trust. The deposit when made becomes the property of the corporation. The depositor is a creditor for the amount of the deposit, which the corporation becomes liable to pay, according to the terms of the contract under which it is made. When payment is made, the claim of the depositor is extinguished^ and he has no further claim upon the funds or assets of the bank. Upon insolvency the assets and property of the corporation, as in the case of other corporations, is…
2Cited by30 opinions
- Fowler v. . Bowery Savings BankNew York Court of Appeals · 1889
- Lippitt v. Thames Loan & Trust Co.Supreme Court of Connecticut · 1914
- Jemison v. Citizens' Savings Bank of JeffersonNew York Court of Appeals · 1890
- In re the Judicial Settlement of the Accounts of EhlertAppellate Division of the Supreme Court of the State of New York · 1933
- Williams v. JohnsonMontana Supreme Court · 1914
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