85 Misc. 594 | N.Y. Sup. Ct. | 1914
At the time when the Northern Bank was put in the possession of the superintendent of banks the city of New York had on deposit in the bank about $200,000. The funds on deposit were derived from taxes, water rents, assessments and arrears collected by the city. On April 14, 1913, the city of New York made a written demand on the superintendent of banks for the preferential payment of its deposit. This claim of preference was based upon the decision of the Court of Appeals in Matter of Carnegie Trust Co., 206 N. Y. 390, decided November 19, 1912, in which it was held that the state succeeded to the right which the crown had at common law to preference in the payment of debts and that where it has funds on deposit with an insolvent banking corporation it is entitled to preference in ‘ ‘ payment over other depositors and creditors not having a prior specific lien on the assets.” The superintendent of banks on April 14, 1913, rejected the city’s claim to a preference, and the city on or about March 26, 1914, initiated these proceedings to establish its claims. The superintendent of banks urges as a preliminary objection that the city has, by various proceedings heretofore taken
Motion denied, without costs.