Third Nat. Bank in Nashville v. Impac Limited, Inc.

A federal statute enacted in 1873 provides that certain *313prejudgment writs shall not be issued against national banks by state courts.1 The question presented by this case is whether that prohibition applies to a preliminary injunction restraining a national bank from holding a private foreclosure sale, pending adjudication of the mortgagor’s claim that the loan is not in default. We conclude that the prohibition does not apply.

Only the essentials of the rather complex three-party transaction giving rise to this dispute need be stated. Respondents borrowed $700,000 from petitioner, a national…