Kansas State Bank v. Wheeler Kelly Hagny Trust Co.

The opinion of the court was delivered by

Dawson, C. J.:

This is an appeal from a declaratory judgment construing certain agreements between various parties interested in the affairs of an insolvent bank. Incidental thereto was the question whether a certain deed executed pursuant to those agreements was a mortgage entitling the grantor to have it foreclosed with the usual period of redemption.

It appears that in 1931 the Peoples State Bank of Wichita was in financial difficulties. The Merchants Reserve State Bank of the same city was disposed to take over its assets and liabilities and to…