(DOWNLOAD) "Superintendent Banks State New York V." by Supreme Judicial Court of Massachusetts # eBook PDF Kindle ePub Free
eBook details
- Title: Superintendent Banks State New York V.
- Author : Supreme Judicial Court of Massachusetts
- Release Date : January 02, 1936
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 72 KB
Description
LUMMUS, Justice. Carrying out the provisions of article 8, § 7, of the Constitution of New York, adopted in 1894, its Banking Law (Laws of 1914, c. 369 [Consol.Laws N.Y. c. 2]), § 120 provides: 'The stockholders of every bank shall be individually responsible, equally and ratably and not one for another, for all contracts, debts and engagements of the bank, to the extent of the amount of their stock therein, at the par value thereof, in addition to the amount invested in such shares.' The Bank of United States is a banking corporation formed under the laws of New York. The defendants, are partners in a stock brokerage business in Boston, and are residents of Massachusetts. In February and March, 1930, they bought one hundred thirty shares of the stock of said bank and resold them to residents of Rhode Island, who still own them. For the convenience of the purchasers, in case of possible trading, the shares were transferred from the former owners into the name of the defendant firm, which therefore on December 11, 1930, appeared on the books of the bank to be the owner of one hundred thirty shares having an aggregate par value of $3,250, although in fact it owned none. On December 11, 1930, the bank had a total authorized and issued capital stock of $25,250,000, represented by one million, ten thousand shares of the par value of $25 each. On that day, it appearing to the then superintendent of banks that the bank could not 'with safety and expediency continue business,' he took possession of the business and property of the bank and engaged in the liquidation thereof, under the authority of section 57 of the Banking Law (Laws of 1914, c. 369, § 57 [Consol.Laws N.Y. c. 2]). Under section 72 he duly notified the creditors to present claims on or before June 30, 1931. Subsequently he determined that the excess of liabilities over assets amounted to more than $30,000,000. Thereafter, pursuant to section 80, on July 1, 1932, he determined to enforce the liability of stockholders to the full extent of the par value of their stock. He made demand in writing upon the stockholders, including the defendants, for payment of the assessment, fixing August 8, 1932, as the date for payment. No assessment or demand was ever made upon the real owners of the stock in Rhode Island. The defendants failed to pay the assessment, and this action of contract was begun to collect it.