Penney v. Haugan

The plaintiff, assignee of the American Exchange Bank under the insolvent law of 1881, brought this action to recover some $17,000 of promissory notes transferred June 24, 1893, by the insolvent bank to the defendant as collateral security for the payment of $12,415 due him as a depositor of the bank. The ground upon which the assignee sought to recover was that the transfer was made for the purpose of giving the defendant an unlawful preference over the other creditors of the bank. The city of Minneapolis intervened, claiming that the money deposited by defendant with the bank belonged to it.