North City Trust Company Case

Opinion by

Mr. Justice Barnes,

The question presented by this appeal is whether a claimant is entitled to a preference in the distribution of the proceeds of an insurance trust, which was held as collateral security by the North City Trust Company. The issue arises upon the audit of the account of the Secretary of Banking, as receiver for the institution mentioned. The only question before us is one of law, as the facts are not in dispute.

Frank H. Schrenk, the president of the trust cdmpany, by deed dated April 18, 1931, created an insurance trust, naming the trust company as trustee. He…