Hardy v. People's State Bank of Lancaster

This action was brought by the plaintiff to foreclose a mortgage executed to him as trustee by the State Bank of Lancaster just a few days before the state banking commissioner took possession of the bank as an insolvent institution. The resources of the bank had been seriously impaired by embezzlement on the part of the active officers of the bank, the cashier and the vice-president. On May 27 or 28, 1923, in an effort to raise money, Pugh, the cashier, went to Chicago and called upon William Hardy, an old business associate, and implored him to negotiate a loan on behalf of the bank in the…