Money & Banking Cites

[dashboy]

Even assuming that national banks are not authorized under the law to go into the market and buy promissory notes from those who are selling them only as a commodity, and therefore that such purpose is ultra vires, yet such transaction being an ordinary contract, and not made penal nor expressly forbidden by law, the maker or indorser cannot defend on the ground that the bank obtained no title. National Pemberton Bank v. Porter, 1878, 125 Mass. 333, 28 Am.Rep. 235. See, also, > Prescott Nat. Bank v. Butler, 1893, 157 Mass. 548, 32 N.E. 909; Trenton First Nat. Bank v. Gillilan, 1880, 72 Mo. 77; Atlas Nat. Bank v. Savery, 1879, 128 Mass. 75.

It has been held that the right to discount and negotiate notes, etc., goes no further than to authorize the taking of them in return for a loan of money made on the strength of the promises contained in them, and does not contemplate a purchase in the market. Lazear v. National Union Bank, Md.1879, 52 Md. 78, 36 Am.Rep. 355. See, also, Rochester First Nat. Bank v. Pierson, 1877, 24 Minn. 140, 31 Am.Rep. 341.

A national bank cannot acquire title to a note by purchase. Ridgway v. National Bank of New Castle, 1890, 12 Ky.Law Rep. 216.

> 115. Certification of checks

A bank had no power to certify an instrument by which the drawers agreed to pay their surety any amount the surety might be legally required to pay by virtue of such suretyship, not exceeding $10,159, the check to be void in the absence of such liability; such instrument not being a commercial check, drawn in the ordinary course of banking business. > Fidelity & Deposit Co. of Md. v. National Bank of Commerce of Dallas, Tex.Civ.App.1907, 106 S.W. 782, 48 Tex.Civ.App. 301, error refused.

[dashboy]

> 116. Collection of checks and notes

A national bank may engage in the business of collecting notes, checks, bills of exchange, and other evidence of debt as an incident of the banking business, although the authority is not expressly mentioned in this section; and it is liable for negligence therein to the same extent as other banks and collecting agents. > Logan County Nat. Bank v. Townsend, U.S.Ky.1891, 11 S.Ct. 496, 139 U.S. 67, 35 L.Ed. 107. See, also, > Taylor, etc., Co. v. National Bank, D.C.Ohio 1919, 262 F. 168; > Hanson v. Heard, 1897, 69 N.H. 190, 38 A. 788; > Mound City Paint, etc., Co. v. Commercial Nat. Bank, 1886, 4 Utah 353, 9 P. 709; Keyes v. Hardin Bank, 1893, 52 Mo.App. 323; White v. Cincinnati Third Nat. Bank, Super.1879, 7 Ohio Dec.(Reprint) 666, 4 Cinc.Law Bul. 791; Yerkes v. National Bank, 1877, 69 N.Y. 382, 25 Am.Rep. 208.

Bank's right to charge back to depositor's account dishonored paper is well settled, in view of custom. > Bryant v. Williams, D.C.N.C.1926, 16 F.2d 159.

Even if a guaranty of checks from one national bank to another for clearinghouse purposes is ultra vires, this fact will not avail the drawers of a check who are not parties to the guaranty when charged with liability to the bank, which in compliance with such guaranty had paid the checks and become an assignee thereof after the drawee became insolvent. > Voltz v. National Bank of Illinois, Ill.1895, 42 N.E. 69, 158 Ill. 532.

A national bank receiving for custody, care, and collection a note and mortgage of its customer and thereafter forwarding the same for collection, is acting intra vires and liable for breach of its duty. > Brandenburg v. First Nat. Bank of Casselton, N.D.1921, 183 N.W. 643, 48 N.D. 176.


A national bank may make a valid conditional acceptance of a check by promising to pay it whenever a draft left with the bank for collection by the drawer, and sufficient in amount for the purpose, shall have been paid. Merchants' Nat. Bank of Wheeling v. First Nat. Bank of Wheeling, W.Va.1874, 7 W.Va. 544.

> 117. Interest

An authority to discount or make discounts, from the very force of the terms, necessarily includes an authority to take interest in advance. > Cooper v. National Bank of Savannah, Ga.App.1917, 94 S.E. 611, 21 Ga.App. 356, certiorari granted > 38 S.Ct. 423, 246 U.S. 670, 62 L.Ed. 931, affirmed > 40 S.Ct. 58, 251 U.S. 108, 64 L.Ed. 171.

> 118. Mortgages

Sale of mortgages and other evidences of debt, acquired by way of loan or discount, with a view to reinvestment, held within recognized limits of incidental power of national banks, in view of this section and § 371 of this title. > First Nat. Bank v. City of Hartford, U.S.Wis.1927, 47 S.Ct. 462, 273 U.S. 548, 71 L.Ed. 767.

National bank selling real estate mortgage may not contract to repurchase it. > Greene v. First Nat. Bank, Minn.1927, 215 N.W. 213, 172 Minn. 310.

> 141. Generally

A national bank has not power to lend its credit by becoming surety, indorser, or guarantor for another. > People's Bank v. Manufacturers' Nat. Bank, U.S.Ill.1879, 101 U.S. 181, 11 Otto 181, 25 L.Ed. 907. See, also, People's Nat. Bank v. Southern States Finance Co., 1926, 133 S.E. 415, 192 N.C. 269.

A national bank may not lend its credit. > Federal Intermediate Credit Bank of Omaha v. L'Herisson, C.C.A.8 (S.D.) 1929, 33 F.2d 841.

National bank has no power to guarantee, merely for accommodation of another, performance of obligations in which it has no interest and from which it derives no benefit. > C.E. Healey & Son v. Stewardson Nat. Bank, Ill.App.1936, 1 N.E.2d 858, 285 Ill.App. 290.

A national bank has no power to lend its credit by becoming security for the performance of a contract by anotherh. > Thilmany v. Iowa Paper-Bag Co., Iowa 1899, 79 N.W. 68, 108 Iowa 333. See also, > Knickerbocker v. Wilcox, 1890, 83 Mich. 200, 47 N.W. 123, 21 Am.St.Rep. 595; Norton v. Derry Nat. Bank, 1882, 61 N.H. 589, 60 Am.Rep. 334; Bushnell v. Chautauqua County Nat. Bank, 1878, 74 N.Y. 290.


A guarantee or direct primary obligation of national bank to pay speculative amounts is "ultra vires" when depositors or stockholders of the bank will be held liable. > Berylwood Inv. Co. v. Graham, Cal.App. 1 Dist.1941, 111 P.2d 467, 43 Cal.App.2d 659.

National bank's guaranty of other's negotiable paper for their benefit is ultra vires and void. > Consolidated Nat. Bank of Tucson v. Anglo & London Paris Nat. Bank of San Francisco, Ariz.1928, 269 P. 68, 34 Ariz. 160, certiorari dismissed > 50 S.Ct. 87, 280 U.S. 526, 74 L.Ed. 593. See, also, > McQueen v. First Nat. Bank of Mesa City, 1929, 283 P. 273, 36 Ariz. 74.

Agreement of national bank to satisfy debt without receiving benefit held ultra vires covenant to make gift of capital assets and void. Colley v. Chowchilla Nat. Bank, Cal.1927, 255 P. 188, 200 Cal. 760.

A national bank, under federal law being limited in its powers and capacity, cannot lend its credit by guaranteeing the debt of another, and all such contracts entered into by its officers are ultra vires and not binding on the corporation. > Howard & Foster Co. v. Citizens' Nat. Bank of Union, S.C.1925, 130 S.E. 758, 133 S.C. 202.

[dashboy]

An agreement of a national bank to guarantee an obligation of another person for his sole benefit, though founded upon a valuable consideration, is ultra vires and does not bind the bank, unless the circumstances are such as work an estoppel. > Farmers' & Merchants' Bank of Reedsville v. Kingwood Nat. Bank, W.Va.1920, 101 S.E. 734, 85 W.Va. 371.

Under this section a national bank cannot guarantee payment of obligations of others for their benefit. That a national bank was a creditor of a debtor company, and interested in its securing money or merchandise, did not make bank's guaranty binding, nor would such guaranty be valid because plaintiff extended credit because of it. > Rice & Hutchins Atlanta Co. v. Commercial Nat. Bank of Macon, Ga.App.1916, 88 S.E. 999, 18 Ga.App. 151.

Contracts by which national bank paid seller for stock in insurance company and looked to subscribers for reimbursement out of installment payments made on the notes given by subscribers to bank, giving the subscribers right to rescind purchases and withdraw all amounts paid, thereby in effect agreeing to hold purchasers harmless from loss by reason of their purchases, was void, under this section as amended in 1927. > Brown v. Fourth & First Nat. Bank, Tenn.1937, 103 S.W.2d 327, 171 Tenn. 371.

Under this section, a national bank is without power to make an agreement with a depositor that the bank will guarantee payment of loans by depositor to third parties made through an officer of the bank. > City Nat. Bank of Wellington v. Morgan, Tex.Civ.App.1924, 258 S.W. 572.


A national bank cannot lend its credit or become the guarantor of the obligation of another unless it owns or has an interest in the obligation guaranteed especially where it receives no benefits therefrom. > Citizens' Nat. Bank of Cameron v. Good Roads Gravel Co., Tex.Civ.App.1921, 236 S.W. 153, dismissed w.o.j.

In view of this section the cashier of a national bank held not authorized gratuitously to guarantee the payment of drafts thereafter to be drawn on one of its customers. > Alex Woldert Co. v. Citizens' Bank of Ft. Valley, Ga., Tex.Civ.App.1921, 234 S.W. 124, error dismissed.

A national bank has no power to guarantee the performance of a contract made for the sole benefit of another. > First Nat. Bank v. Crespi & Co., Tex.Civ.App.1920, 217 S.W. 705, dismissed w.o.j.

In action by one national bank against another on contract created by telegrams guaranteeing payment of certain drafts, evidence showed that plaintiff had full knowledge that such contract was one of guaranty, for accommodation of primary obligor, that defendant had no interest therein and derived no benefit therefrom, and that such contract was beyond power of defendant, under its charter, to make. First Nat. Bank v. National Produce Bank of Chicago, 1926, 239 Ill.App. 376.

A national bank has no power or authority to become a mere accommodation indorser or guarantor of the payment of a debt for another, without benefit to the bank. Barnwell Bank v. Philadelphia Sixth Nat. Bank, 1905, 28 Pa.Super.Ct. 413. See, also, > Maryland Fidelity, etc., Co. v. National Bank of Commerce, 1908, 48 Tex.Civ.App. 301, 106 S.W. 782.

[dashboy]

> 150. Other banks

An agreement by two national and two state banks in a city to assume the liabilities of an insolvent state bank in such city, and to pay any deficiency in its assets, was illegal and ultra vires, under this section. > Board of Com'rs of Lake County v. Citizens' Trust & Savings Bank, Ind.App.1919, 123 N.E. 130, 73 Ind.App. 76.

National bank's contract of suretyship for another bank held ultra vires. > Board of Com'rs of Brunswick County v. Bank of Southport, N.C.1928, 145 S.E. 227, 196 N.C. 198.

Where a bank, on the faith of a guaranty by another bank of payment for a carload of melons, permitted the seller thereof to withdraw guaranteed sum from the bank, the guaranteeing bank could not plead that the contract of guaranty was beyond its charter powers. > El Paso Bank & Trust Co. v. First State Bank of Eustis, Tex.Civ.App.1918, 202 S.W. 522.

The procurement of a signature to a note for another bank, in order that it may lend money to a third person, and a representation that the signature is genuine, are not within the powers of a national bank, and it is not liable where the note turns out to be a forgery. > Commercial Nat. Bank v. First Nat. Bank, Tex.1904, 80 S.W. 601, 97 Tex. 536, 104 Am.St.Rep. 879.

> 174. Mortgages

A national bank receiving the proceeds of a customer's note and mortgage with authority to pay out the same upon a first mortgage lien upon real estate is acting intra vires and liable for breach of its duty. > Brandenburg v. First Nat. Bank of Casselton, N.D.1921, 183 N.W. 643, 48 N.D. 176.

> 205. Dealing in its own shares

A national bank cannot purchase its own stock except to prevent loss upon debt previously contracted; nor can it borrow money for use in the purchase of its stock to be parceled out among its employees as a benefit fund. > Commonwealth Trust Co. of Pittsburgh v. First-Second Nat. Bank of Pittsburgh, Pa.1918, 103 A. 598, 260 Pa. 223, certiorari denied > 38 S.Ct. 425, 246 U.S. 675, 62 L.Ed. 933.

> 243. Broker or agent

A contract made by a national bank as broker for a client to sell stock of another corporation is ultra vires, and the purchaser cannot recover damages for its breach. > Hotchkin v. Third Nat. Bank of Syracuse, N. Y., Mass.1914, 106 N.E. 974, 219 Mass. 234.

National bank, whose officers undertook to act as agent, is liable for failure to comply with instructions concerning delivery of bill of sale. > Bock v. First Nat. Bank, Kan.1927, 255 P. 68, 123 Kan. 304.

National banks have no power to negotiate loans for others. > Pollock v. Lumbermen's Nat. Bank of Portland, Or.1917, 168 P. 616, 86 Or. 324.

A national bank cannot act as broker in lending its depositors' money to third persons. > Byron v. First Nat. Bank of Roseburg, Or.1915, 146 P. 516, 75 Or. 296.

A national bank may intrust to its agents such authority as is required to meet the legitimate demands of its authorized business and to conduct its affairs within the scope of its charter. > Ricker Nat. Bank v. Stone, Okla.1908, 97 P. 577, 21 Okla. 833.

A national bank is not authorized to act as a broker in loaning the money of others. > Grow v. ****rill, Ark.1897, 39 S.W. 60, 63 Ark. 418. See, also, Keyser v. Hitz, Dist.Col.1883, 2 Mackey, 513.

[dashboy]

> 285. ---- Contracts

An officer of a national bank cannot bind it by contracts or acts which are not within the scope of the business which the bank is authorized to transact. > Stockmen's Nat. Bank v. First Nat. Bank, Idaho 1923, 221 P. 150, 38 Idaho 395.

> 301. Fidelity bond

Conduct of director of national bank, in connection with purchase of real estate notes in violation of this chapter, who acted in interest of beneficial owners of bank, in conflict with interest of bank, when he accepted notes knowing that they comptroller of currency, misrepresented to comptroller of currency, misrepresented to bank's president that notes had been checked by attorney, and signed purchaser's statement knowing that one recipient of funds paid for notes was front for the beneficial owners, was "dishonest and fraudulent," within fidelity bonds issued to bank. > Federal Deposit Ins. Corp. v. Aetna Cas. & Sur. Co., C.A.5 (Tex.) 1970, 426 F.2d 729.

Where a fidelity bond confines liability to acts constituting embezzlement, there can be no recovery except for acts constituting that crime under § 592 of this title. > U. S. Fidelity & Guaranty Co. of Baltimore, Md. v. Hughes, C.C.A.10 (Okla.) 1930, 40 F.2d 34.

It is no defense to an action on the bond of a national bank officer, on the theory that the principal, who was an officer of both the bank and the corporation, had made a note of $3,000 without authority for a corporation, that the receiver of the bank sued the corporation on the note, on the theory that the principal had authority to make it. > Rankin v. Tygard, C.C.A.8 (Mo.) 1912, 198 F. 795, 119 C.C.A. 591.

Directors of a national bank left its management for more than three years almost wholly to its cashier, who had but little property, and of whom they required no bond. Held that the directors were personally liable for losses caused by the fraud and defalcations of the cashier. > Robinson v. Hall, C.C.A.4 (N.C.) 1894, 63 F. 222, 12 C.C.A. 674.

The sureties on a cashier's bond are not released from liability for a default of the cashier because such default was permitted by the negligence and misconduct of the president and directors. > Phillips v. Bossard, D.C.S.C.1888, 35 F. 99.

Surety on fidelity bond insuring bank against loss by reason of cashier's fraud, dishonesty, or abstraction of funds was not liable by reason of cashier's transactions in securing loan from bank to make up his contribution as director to cover depreciation in securities of bank and allegedly misrepresenting realty given as security, where directors' contribution amounted to gift and transactions simply effected transfer of funds of bank from one account to another; all money represented thereby remaining in possession of bank. > Calistoga Nat. Bank v. Fidelity & Deposit Co. of Maryland, Cal.App. 3 Dist.1935, 42 P.2d 1051, 5 Cal.App.2d 248.

> 302. Fiduciary duty

Officers of national bank in handling its funds are acting in a fiduciary capacity, and cannot make loans and furnish money contrary to law or in such improvident manner as to imperil its funds. > First Nat. Bank v. Humphreys, Okla.1917, 168 P. 410, 66 Okla. 186.

[dashboy]

> 303. Personal liability of officers

When a loss has been caused to a national bank by the appropriation of its funds to a purpose unauthorized by law, or by culpable negligence or conversion of its funds, the officers who participated in or consented to the act are jointly and severally liable for the entire amount. > Cooper v. Hill, C.C.A.8 (Colo.) 1899, 94 F. 582, 36 C.C.A. 402.

> 376. Fraudulent representations

Representations made by bank president to proposed surety as to borrower's assets, in connection with proposed loan by bank, held binding on bank. > Young v. Goetting, C.C.A.5 (Tex.) 1926, 16 F.2d 248.

Bank is liable for its vice president's participation in scheme to defraud depositor by facilitating prompt withdrawal of his money. > National City Bank v. Carter, C.C.A.6 (Tenn.) 1926, 14 F.2d 940.

A national bank was liable for deceit, where its president, who transacted its business, purporting to act for the bank, sold to plaintiff a note and real estate mortgage, and received payment by drafts payable to him as president, when in fact the bank did not own the note and mortgage, and did not deliver them, although it did not receive the purchase money, and although plaintiff knew it had no authority to make such loans, either for itself or as broker, where he had previously during several years purchased such loans from it, through its president, in the same manner. Smith v. First Nat. Bank of Casselton, N.D., C.C.A.8 (> N.D.) 1920, 268 F. 780, certiorari denied > 41 S.Ct. 218, 254 U.S. 655, 65 L.Ed. 460.

Regarding the liability for fraudulent representations of the president of a bank in selling stock belonging to Y., the president was acting for the bank, his purpose being to comply with directions of Comptroller of Currency for reduction of Y.'s indebtedness. > Salter v. Williams, C.C.A.3 (N.J.) 1917, 244 F. 126, 156 C.C.A. 554, appeal dismissed > 40 S.Ct. 53, 250 U.S. 653, 63 L.Ed. 1191.

The president of a national bank discounted his note with a correspondent bank under an agreement by which the latter placed the proceeds to the credit of his own bank in a special account which was not subject to check, but was to be held to meet the note at its maturity. The books of his bank showed the amount as a deposit in its general account with the correspondent, the purpose being to deceive the examiner. On the failure of his bank the correspondent charged the note to the special account in accordance with the agreement. Held, that the amount to the credit of the insolvent bank in such amount did not in fact belong to it, but remained the property of the pretended lender; the whole transaction being merely a subterfuge, and that its application to the payment of the note was not a conversion. Cherry v. City > Nat. Bank of Kansas City, C.C.A.8 (Mo.) 1906, 144 F. 587, 75 C.C.A. 343, affirmed > 28 S.Ct. 346, 208 U.S. 541, 52 L.Ed. 610.

National bank was chargeable with knowledge of president's agreement to use borrower's stock as collateral for loan from bank, and with president's knowledge of fraud whereby stock was used for other purposes. > Satterwhite v. Harriman Nat. Bank & Trust Co. of City of New York, S.D.N.Y.1935, 13 F.Supp. 489.

Where the president of a national bank, pretending to act as such, fraudulently and deceitfully made representations to the customer of the bank concerning the character of a pretended first mortgage lien, and thereby occasioned the proceeds realized upon a note belonging to the bank's customer to be paid and invested in a worthless mortgage, the bank is liable for the fraud and deceit practiced, although it received no benefit, and its officer's acts were ultra vires. > Brandenburg v. First Nat. Bank of Casselton, N.D.1921, 183 N.W. 643, 48 N.D. 176.

In action against bank for deceit, based on letter concerning corporation whose stock plaintiff bought, lack of evidence that bank authorized letter written by its president held to render judgment sustaining demurrer to plaintiff's evidence proper. > Shriver v. Fourth Nat. Bank, Kan.1926, 247 P. 443, 121 Kan. 388.

> 407. Fraudulent representations

Cashier who acting as its representative made false reports to state auditor as to state of county treasurer's account was liable personally for fraud. > U S Fidelity & Guaranty Co v. Citizens' Nat Bank, D.C.N.M.1924, 13 F.2d 213.

A national bank is liable for fraudulent representations by its cashier to another bank as to the financial responsibility of a customer. > Nevada Bank of San Francisco v. Portland Nat. Bank, C.C.D.Or.1893, 59 F. 338.

[dashboy]

> 411. Lending of money

National bank cannot be liable for act of cashier in lending money for depositor, nor is it liable on guarantee of payment of such loan. > First Nat. Bank v. Stringfield, Idaho 1925, 235 P. 897, 40 Idaho 587.

The cashier of a national bank has no power as such to enter into an agreement to loan out the money of a depositor, and his acts in so doing do not bind the bank. > Holmes v. Uvalde Nat. Bank, Tex.Civ.App.1920, 222 S.W. 640, error refused.

> 412. Misappropriation or theft

A national bank was liable for the wrongful act of the cashier in transferring to his own name, and hypothecating for his own debt, stocks which plaintiff, according to the previous course of business of the bank, and with the consent of the president, had intrusted to the cashier, in his capacity as such, to sell, and place the proceeds to plaintiff's credit. Williamson v. Mason, N.Y.Sup.1877, 12 Hun 97.

National bank was liable for fraudulent misappropriation by cashier, if cashier, in transferring depositors' money to his account, under guise of making loan thereof, had present intention to misappropriate. Wasmann v. City Nat. Bank of Knoxville, Tenn., C.C.A.6 (> Tenn.) 1931, 52 F.2d 705.

On sale of stolen bond by draft drawn to national bank, signed by cashier, with bond attested by cashier attached to draft, bank was liable to purchaser without notice. > First Nat. Bank v. Mee, Okla.1927, 259 P. 523, 126 Okla. 265.

Neither the cashier of a national bank nor a member of the discount board owning a majority of the stock, nor the two conspiring together, can give away the funds of the bank, nor use them to pay their individual debts, and if they conspire to pay the stockholder's debt by the entry of credits on the bank books in favor of his creditor based on fictitious notes, and the creditor checks out the amount of the credit without the sanction of the directors, the creditor is liable to the bank for the money so drawn, though he may have had no knowledge of the fraud of the officers. > Cobe v. Coughlin Hardware Co., Kan.1910, 112 P. 115, 83 Kan. 522.

Where a cashier of a national bank bought and sold stocks for customers in the name of the bank, with the knowledge of the directors, the bank is liable for stocks embezzled by the cashier, though the bank was unauthorized to deal in stock. Searle v. First Nat. Bank, Pa.Com.Pl.1885, 2 Walk. 395.

The rule that payment to an agent acting within the scope of his authority is payment to the principal, and that the principal thereby becomes responsible for the default of his agent, applied in case of a payment to a cashier of a national bank; and therefore the person paying the money cannot sue the cashier for a misappropriation of the money. Wilson v. Rogers, Wyo.1872, 1 Wyo. 51.

The loss of a special deposit through the theft of the cashier or clerks of a bank, does not render the bank liable, in the absence of evidence of negligence in the selection of such cashier or clerks, or in permitting them to be retained after notice of unfitness. Smith v. First Nat. Bank, 1868, 99 Mass. 605, 47 Am.Dec. 59.

[dashboy]

> 413. Real property transactions

Cashier of national bank had authority to execute affidavit of consideration for chattel mortgage without specific recitals of authority. > Stark v. Flemington Nat. Bank & Trust Co., N.J.Super.Ch.1955, 118 A.2d 114, 38 N.J.Super. 58.

The cashier of a national bank, who is its active executive officer and is intrusted with the duty of selling lands acquired by the bank in satisfaction of debts, and who has authority to employ a broker to sell such lands, acts within the scope of his authority in designating to the broker the lands to be offered for sale, and a mistake in such designation is likewise within the scope of his authority, and is in effect the act of the bank, for which it is responsible. > Arnold v. National Bank of Waupaca, Wis.1905, 105 N.W. 828, 126 Wis. 362.

Where the directors allowed the cashier, who was the principal stockholder and thereafter became president, to assume complete control over a bank, the bank is bound by his acts in acquiring land for its benefit. > First Nat. Bank v. Conway, Wash.1915, 151 P. 1129, 87 Wash. 506.

In contemplation of law, the leasing of property belonging to a national banking association is not within the ordinary powers and duties of the cashier of the bank. > Spongberg v. First Nat. Bank, Idaho 1910, 110 P. 716, 18 Idaho 524, Am.Ann.Cas. 1912A,95.

Cashier of national bank could purchase property at mortgage foreclosure sale without formal authorization by directors, where mortgagor had given second mortgage to sureties on his note to bank. > Commonwealth Life Ins. Co. v. Combs, Ky.1933, 65 S.W.2d 696, 251 Ky. 540.

Where directors expressly ordered cashier of national bank to sell collateral and charge off any remainder of debt, there could arise no implied authority on cashier's part to take over realty and assume incumbrance thereon. > Carpenter v. Ferris Nat. Bank, Tex.Civ.App.1933, 60 S.W.2d 495.

[dashboy]

Perhaps one of the most important Acts you can and should read on banking is the Monetary Control Act of 1980.

Attached!

dashboy~

[weishaupt1776]

He's unstoppable, I tell ya. The man is on a rampage !!!