First State Bank of Paris v. Collier

LEVY, J. The statement of the case sufficiently appears in the certified questions to the Supreme Court. Answer was made to certified ✓ question No. 6 because such question and the affirmative answer thereto were determined to be decisive of the suit. The answer bo the question was based upon the conclusion reached by the court that the appellee and his assignors elected to pursue their claims as creditors of the bank as a bond security bank and not as a bank under the guaranty fund plan, and therefore their conduct amounted to an election on their part to choose the bond security plan whether the bank rightfully or wrongfully had changed to that plan, 'and they were thereby concluded from having the balance of their claims classified and made payable out of the depositors’ guaranty fund. These creditors were paid out of the proceeds of the sale of the pledged United States bonds 26-81 per cent, of their claims against the bank, and after deducting that amount sought to have the balance due paid out of the depositors’ guaranty fund. The outstanding facts of the case are that the United States bonds pledged by the bank to secure its creditors were purely assets of the bank, “purchased by the bank with its bills receivable,” and at the date such bond assets were deposited with the banking commissioner the bank was, as found by the jury, “insolvent,” and no assets in any amount were placed in the bank in the place and stead of the bonds. In keeping with the answer made to the certified question, though not in view of acquiescence, we reverse the judgment of the district court, and here render judgment in favor of the appellants that the appellee take nothing by his suit and pay all costs of the trial court and of this appeal.