149 F.2d 199 | 5th Cir. | 1945
The Benjamin State Bank of Benjamin, Texas, became financially involved in 1934.
The bank was taken into receivership for liquidation by the Banking Commissioner of Texas in 1936. The Federal Deposit Insurance Corporation, which had insured deposits as provided by 12 U.S.C.A. § 264, thereupon paid to all insured depositors the principal of their deposits in the sum of $96,532.15, and received from each such depositor an assignment subrogating the F. D. I. C. to all the depositor’s rights against the bank arising out of the insured deposit. In due course, the assets of the bank were fully liquidated, except those determined to be valueless by the Receiver, and a sum was realized sufficient to repay the F. D. I. C. the full amount that it had paid to depositors. The cash and other assets remaining in the hands of the Receiver, as the parties concede, did not aggregate in value a sum sufficient to pay in full the principal of the claim of the R. F. C., upon which no payment had been made.
The F. D. I. C. then filed an additional claim, in the sum of $6,996.08, for interest on its aggregate principal claim against the bank. The Receiver disallowed this claim, and the F. D. I. C. brought this suit to enforce its payment. The court below gave judgment for the F. D. I. G, and the Receiver appealed. The only question for decision is whether, under the stated facts, the F. D. I. G is entitled to be paid its claim for interest prior to the payment of the claim of the R. F. C. for the principal of its claim.
The general rule is that where the assets of an insolvent bank in receivership are more than sufficient to pay all debts, then the creditors are allowed dividends to pay the interest due from the debtor bank, but where the assets are not sufficient to pay the principal of all debts, interest on general claims will not be computed for the period after the receiver took control.
The application of the law to the facts is not Sifficult. Since the R. F. C. is a creditor of the insolvent bank, and the Receiver does not have sufficient assets to pay its claim in full, this is a case wherein the assets of the insolvent are insufficient to defray the principal of all debts owing. The rights of the depositors are therefore limited to a recovery of the principal of the deposits only, and the rights of the F. D. I. C. are no greater. These sums having been paid in full, the terms of the subordination agreement have been satisfied. The R. F. C. is now entitled to have the remaining assets applied to the payment of its indebtedness.
The judgment appealed from is reversed, and the cause remanded to the district court with direction to dismiss the suit.
Ticonic National Bank v. Sprague, 303 U.S. 406, 58 S.Ct. 612, 82 L.Ed. 926; Chemical National Bank v. Armstrong, 6 Cir., 59 F. 372, 28 L.R.A. 231; 7 Am. Jur. 536; Zollmann’s Banks and Banking, Sec. 3510.
Chemical National Bank v. Armstrong, 6 Cir., 59 F. 372, 28 L.R.A. 231.
White v. Knox, 111 U.S. 784, 4 S. Ct. 686, 28 L.Ed. 603; Thomas v. Western Car Co., 149 U.S. 95, 13 S.Ct. 824, 37 L.Ed. 663; Thomas v. Minot, 10 Gray, Mass., 263.
First National Bank of Houston v. Campbell, 52 Tex.Civ.App. 445, 114 S. W. 887; Cases cited in First State Bank of Eastland v. Phelps, Tex.Civ.App., 67 S.W.2d 900; 25 Texas Jurisprudence, 26.
Federal Deposit Ins. Corporation v. Department of Financial Institutions, 113 Ind.App. 14, 44 N.E.2d 992.