North Carolina Corp. Commission v. Citizens Bank & Trust Co.

The appeal presents for review the ruling of the trial court on these two questions: 1. Under the principles of the common law has the State, by reason of its sovereignty, the prerogative right to prefer its claim over the claims of other like depositors, for its deposits made on open account in a bank which has become insolvent ? 2. If so, is the appellant, upon paying the amount due the State by the insolvent bank, entitled to be subrogated to the preferred rights of the State ? The second question need not be considered if the first is answered in the negative.

Since the right, if existent,…