247 Mass. 73 | Mass. | 1923
When the bank commissioner, Joseph C. Allen, took possession of the Cosmopolitan Trust Company under the liquidation statute, he found among the assets of the savings department a note of the plaintiff for $9,000 dated September 7, 1920, and payable to the order of said trust company. WThen this note became due, on January 7, 1921, the plaintiff had on deposit in the commer
The note being an asset of the savings department, admittedly the plaintiff did not have a right to apply its deposit in the commercial department as a set-off, G. L. c. 172, § 62. Bachrach v. Commissioner of Banks, 239 Mass. 272. Bailey v. Commissioner of Banks, 244 Mass. 499. Nor did its tender of a check on an insolvent bank in liquidation constitute payment. Cosmopolitan Trust Co. v. Lyons, 244 Mass. 115. Cosmopolitan Trust Co. v. S. Vorenberg Co. 245 Mass. 317. Its contention that the note should be transferred to the commercial department is based on the fact that the original note of February 5, 1920, for $9,500 was given as security for money borrowed from that department, and that it was turned over to the savings department without its knowledge or consent. But this note, with others, was so transferred in exchange for other notes of the savings department and cash on February 28, 1920. When it fell due on May 5, the plaintiff paid $500, and a new note for $9,000 was issued and invested in the savings department; and this was renewed September 7, 1920, in that same department. The fact, that the plaintiff did not have actual knowledge that the outstanding loan made to it was from the funds of the savings department, is immaterial, and cannot affect the rights of the savings depositors to the investments made with their deposits. Kelly v. Commissioner of Banks, 239 Mass. 298. Nor is this result affected by the fact that the note may have been an investment that was illegal for the savings department. Cosmopolitan Trust Co. v. Rosenbush, 239 Mass. 305. It is difficult to see how
Decree affirmed, with costs.