An action against a National bank abates upon its dissolution by decree of
a competent court. National Bank v. Colby, 109.
1. Accommodation acceptance.] It is no defense to a suit against the acceptor of
a draft which has been discounted, and upon which money has been
advanced by the plaintiff, that the draft was accepted for the accommoda-
tion of the drawer. Davis v. Randall, 600.
2. Evidence.] Even if it is within the authority of the president of a National
bank to bind the bank by an agreement, with the acceptor of a draft which
is discounted by the bank, not to enforce the draft against him, yet oral
evidence of such an agreement is not competent, in defense of a suit by
the bank against the acceptor. Ib.
To embezzlement by bank officers.] See EMBEZZLEMENT AND LARCENY, 573.
ACCOMMODATION ACCEPTANCE.
See ACCEPTANCE, 600.
ACCOMMODATION NOTE.
See BANKING BUSINESS, 622.
1. By National banks.] Actions may be brought by National banks, as well
as against them under section 57 of the National Banking Act. Kennedy
v. Gibson, 17.
-] National banks may, by reason of their character as such, sue in the
Federal courts. First Nat. Bank v. County of Douglas, 267.
3. Where may be brought.] A National bank located in one State may bring
an action in the Circuit Court of the United States sitting within another
State against a citizen thereof. Manufacturers' Nat. Bank v. Baack, 161.
] In such action it will be presumed, so far as the question of juris-
diction is concerned, that the stockholders of such bank are citizens of
the State where the bank is located. Ib.
5. Right of bank to sue not controlled by Judiciary Act.] Held, that the plain-
tiff, a National bank, had the right to bring suit in the United States Cir-
cuit Court of the district where the bank was located, upon two notes
indorsed to it by the payee, who was also a citizen of the State and resi-
dent of the district. Commercial Bank of Cleveland v. Simmons, 294.
] That a National bank does not sue by virtue of any right con-
ferred by the Judiciary Act, but by virtue of the right conferred upon
it by the act of 1864, authorizing and creating it, and which constitutes
its charter, that having no right to sue under the Judiciary Act, the lim-
itation in the 11th section, as to suits on indorsed notes and choses in
action, does not apply. Ib.
7. Jurisdiction of State courts.] State courts have jurisdiction of actions by
National banks. First Nat. Bank v. Hubbard, 912.
8. Against National banks in Federal courts.] A National bank cannot be
sued in the district courts outside the district where it is located. Ser-
vice on the cashier, when found in another district, does not give jurisdic-
tion Main v. Second Nat. Bank, 200.
9. Against National banks in State courts.] An action against a National
bank may be brought in any State, county or municipal court having
jurisdiction of similar controversies in the county or city where the
bank is located.
Bank of Bethel v. Pahquioque Bank, 77.
-] An action lies in a State court against a National bank only in the
city or county where the bank is located. Crocker v. Marine Nat. Bank,
575.
-] A State court of New York has no jurisdiction of an action against
a National bank located in Alabama. Cadle v. Tracy, 230.
.] National banks can be sued only in the courts designated in the
National Banking Act. Ib.
13.] An action may be brought against a National bank in the courts of a
State other than that where it is located. Cooke v. State Nat. Bank, 698,
and note.
-.] Semble, that Congress has not the power to deprive State courts
of jurisdiction in such cases. Ib.
15. Against National banks and receivers of National banks.] National banks,
like any other corporations, and the receivers of them may sue and be
sued in the State courts of their domicile. Adams v. Daunis, 510.
-] The receiver of a National bank is amenable to the jurisdiction of a
State court in a parish other than that in which the bank was located
and in which he has his domicile. Ib.
17. Against National bank after it has gone into liquidation.] An action may
be prosecuted against a National bank, although it has resolved to go into
liquidation and has provided for the redemption of its circulating notes.
Ordway v. The Central Nat. Bank of Baltimore, 559.
18. After appointment of receiver.] An action may be brought against a
National bank after the appointment of a receiver. Bank of Bethel v.
Pahquioque Nat. Bank, 77; Security Bank v. Nat. Bank, 774; Green v.
Walkill Nat. Bank, 786.
19. Abatement on dissolution of corporation.] An action against a National
bank to collect a claim is abated by a decree dissolving the corporation and
forfeiting its rights and franchises. National Bank v. Colby, 109.
20. Receiver may be made party.] In an action on a claim against a National
bank which has suspended the receiver may be made a party defendant.
Turner v. First Nat. Bank, 454.
21. By receivers against stockholders.] The provision of the National Banking
Act that suits under it, in which officers or agents of the United States are
parties, shall be conducted by the district attorney, is directory only, and
the fact that private counsel is employed to conduct a suit by the receiver
of a National bank against the stockholders thereof is not a matter of
defense to the stockholders. Kennedy v. Gibson, 17.
22. Comptroller to determine when proceedings necessary.] It is the duty of
the Comptroller of the Currency to decide when proceedings are necessary
against the stockholders of a National bank to enforce their personal
liability, and to what extent such liability shall be enforced; and in an
action by a receiver to enforce such liability, such prior determination of
the Comptroller must be distinctly averred and proved. Ib.
23. Parties.] Where less than the entire liability of stockholders is sought
to be enforced, proceedings may be had in equity and an interlocutory
decree may be taken for contribution. Where contribution only is sought,
all the stockholders who can be reached by the process of the court may
be joined in the suit, and it will be no objection that there are others,
beyond the jurisdiction of the court who cannot, for that reason, be made
co-defendants. Ib.
-] Creditors of a National bank cannot proceed directly in their own
name against the stockholders or debtors of the bank, nor are they proper
parties to a suit by a receiver. Ib.
25. To recover interest on claims against bank.] Where on winding up a bank
there are found to be funds enough to pay all claims and leave a surplus,
the Comptroller should allow interest on the claims during the winding
up proceedings, and an action will lie against the bank to recover such
interest. Chemical Nat. Bank v. Bailey, 260.
26. Jurisdiction-estoppel.] A receiver of a National bank does not, by causing
himself to be substituted as defendant in an action against the bank,
estop himself from questioning the jurisdiction of the court. Cadle v.
Tracy, 230.
27. Decision of receiver as to validity of claim.] An action may be maintained
in a State court on a claim against a National bank, although the receiver
of the bank has disallowed the claim. Bank of Bethel v. Pahquioque
Nat. Bank, 77.
Against National banks for liabilities of State bank.] See NATIONAL BANKS, 846.
For penalty for usury, when barred.] See INTEREST, 360, 849, 872.
In State courts to recover penalties for taking unlawful interest.] See JURIS-
When bank can maintain, to enjoin tax on shares.] See TAXATION, 925.
To recover back taxes unlawfully assessed.] See TAXES, 727, and note.
For deposits.] See DEPOSITS, 260.
Will not lie for the interest forfeited for usury.] See INTEREST.
Removal of, from State to Federal courts.] See REMOVAL OF CAUSES.
Of bank officers, how far binding on bank.] The declarations and admissions
of bank officers not made by the express authority of the bank, or when
acting within the limit of their authority, or in respect to a business in
which they have authority to act for the bank, are not binding on the
bank. First Nat. Bank v. Ocean Nat. Bank, 728.
ASSESSMENT.
See TAXATION.
By National banks, when void.] See INSOLVENCY, 276, 285.
1. A National bank may attach the shares of a stockholder therein for his
debt due the bank. Hagar v. Union Nat. Bank, 523.
2. Cannot be issued by State courts.] The act of Congress providing that no
attachment, injunction or execution shall be issued against a National
bank, before final judgment, in any action in a State court, is constitu-
tional. The Chesapeake Bank v. The First Nat. Bank of Baltimore, 531.
3. Against non-resident National banks.] The provision of the National
Banking Act (prior to the Revised Statutes), that attachments, injunctions,
etc., shall not be issued by State courts against National banks before final
judgment, relates only to actions against banks where the action is brought
and not to cases where the action is against a non-resident corporation.
Southwick v. First Nat. Bank, 789.
4. Cannot be issued.] Under the provisions of the Revised Statutes of the
United States, an attachment cannot be issued from a State court against
a National bank before final judgment, whether such bank be located in
the State or not. Central Nat. Bank v. Richland Nat. Bank, 801.
5. National banks cannot be garnisheed.] A National bank holding funds
belonging to a bankrupt estate as depositary of a bankrupt court, cannot
be garnisheed in proceedings supplementary to execution. Havens v.
Nat. City Bank, 783.
6. Sale of attached property after appointment of receiver.] Attached prop-
erty of a National bank cannot be sold under the attachment after a
receiver has been appointed. National Bank v. Colby, 109.
See BANKING BUSINESS; DEPOSITS FOR SAFE-KEEPING.
1. A National bank may buy checks drawn on other banks, whether payable
to bearer or order. First Nat. Bank v. Harris, 590.
2. Right of National banks to purchase notes.] The purchase of a promissory
rote by a National bank for purposes of speculation is ultra vires, and
the bank acquires no title to and cannot recover on a note so purchased.
First National Bank of Rochester v. Pierson, 637, and note, 639.
3. Purchase of negotiable paper.] In the business of banking, the purchas-
ing and discounting of paper is only a mode of loaning money; and a
National bank is authorized thus to acquire notes and bills which are
perfect and available in the hands of the borrower, as well as his own
paper made directly to the bank. Smith v. Exchange Bank, 836.
4. May take notes and mortgages to secure debt.] Defendant being indebted
to a National bank on certain promissory notes made a new note and a
mortgage to secure it, which were, by an agreement with the bank and for
its use and benefit, executed and delivered to one S. without consideration
from him, who also, without consideration, transferred them to the bank,
and the old notes were thereupon delivered up and canceled. Held, (1)
that there was a sufficient consideration for the note and mortgage; (2)
that the bank had power to take notes and mortgages in such way and
form for the purpose of securing its claim. Shinkle v. First Nat. Bank,
824.
5. Right of National banks to exchange securities.] Where a National bank
received on deposit United States bonds of one class for the purpose of
converting the same into bonds of another class, held, (1) that the bank
was not a mere mandatory or bailee acting without compensation, but
was liable to the depositor for the value of the bonds on its refusal to
deliver them on demand; (2) that the business of receiving one class of
United States bonds, to be converted into another, is within the scope of
the powers conferred upon National banks by the act of Congress under
which they are organized; (3) that where a certificate of deposit is
inadmissible as evidence for want of a proper stamp, parol evidence is
admissible of the facts it recites. Leach v. Hale, 466.
6.] Semble that National banks can deal in and exchange government
securities. Van Leuven v. First Nat. Bank, 724.
7. Dealing in stocks.] While National banks cannot deal in stocks, they
may take stock to avoid loss on a debt. First Nat. Bank v. Exchange Nat.
Bank, 124.
8. Power of, to take collateral security — Deposits for safe-keeping — Measure of
damages on loss of bonds.] A National bank received from a customer
bonds as collateral security for a debt then existing, and for future obli
gations. Afterward, and after the customer had paid his indebtedness,
the bonds were stolen from the bank. Held, (1) that the bank was not a
gratuitous bailee of such bonds; (2) that it had power to take the bonds
as security for existing or future loans; (3 that it was liable if it failed
|