171 Ga. 434 | Ga. | 1930
Lead Opinion
G. A. Jackson is a Confederate veteran, and has been drawing a pension as such from the State. From time to time he saved from his pension the sum of $125, which he deposited, on November 16, 1927, in the First National Bank of Cook County,' taking therefor a time certificate, bearing interest. This deposit was made and the time certificate taken therefor upon the advice of the cashier of said bank, and the bank took the funds deposited knowing that they were the pension funds of Jackson.
Our Confederate pension law does not in any way define or restrict the uses which the pensioner can make of his pension money. He can do as he pleases with it. He can save it or spend it. He can invest it or keep it in specie. He can even give it away. He can make a general deposit of it.in a bank, subject to his check, or he can make a special deposit of it. He can deposit it and take therefor a time certificate, bearing interest. If
While we concede that the principle enunciated in the first headnote of the opinion of the Court of Appeals is correct, we do not think that it is applicable under the fact of this case. We further agree with the Court of Appeals that section 1495 of the Penal Code is to be given a liberal construction in favor of the pensioner. Giving to this provision such liberal construction, the pensions of Confederate soldiers and their widows are exempt from garnishment and all other legal process, no matter in whose hands the pension or pensions may be, and no matter whether the pension is in the form in which it was received, or whether it has been changed into some other form. So if this pension money had been deposited in the bank, subject to check, and the pensioner had received therefor only a deposit slip, such fund would be exempt from administration by a receiver of his property. Burgett v. Fancher, 35 Hun (N. Y.), 647. So such a fund would be exempt from seizure by a receiver of the depositor’s property, although the bank was to pay interest on the deposit. Stockwell v. National Bank, 36 Hun (N. Y.), 383. So where such fund is deposited in a bank by the’pensioner, and a certificate of deposit, bearing interest, is given
We do not agree with the Court of Appeals that where a bank receives a deposit with knowledge that it is pension money, the obligation of the bank to the pensioner is a substitute for the pension, impressed with the same character as the pension money so deposited; and that where the superintendent of banks subsequently takes possession of a bank for liquidation because of its insolvency, it is his duty, on demand of the pensioner, to restore to him from the general funds of the bank a sum equivalent to his deposit, as a fund not subject to administration. We can not agree with the ruling made by the Court of Appeals in the second headnote of its opinion'in this case, for the reasons hereinafter stated. Our exemption statute exempts the pensioner “from garnishment’ and all other legal process, no matter in whose hands the pension or
While it is true that where a bank receives a deposit with knowledge that it is pension money, the resulting obligation of the bank to the pensioner is substituted for the pension, it does not follow that where the superintendent of banks subsequently takes possession of a bank because of its insolvency, it is his duty on demand of the pensioner to restore to him the equivalent of his deposit as a fund not subject to administration. What the pensioner got in place of his pension money is the obligation of the bank, represented by its certificate, to pay him the amount of money represented therein. The pensioner got the time certificate in place of the pension money. This money when deposited in the bank became the property of the bank. The fund deposited was no longer impressed with the character of the pension. The obligation of the bank stood in place of the pension. The conversion of the pension money into a time certificate of the bank, bearing interest, was not a wrongful conversion of the pension funds. The pensioner could make such investment in order to earn money on his saved pension money. It does not logically follow that because of such investment the pensioner would be entitled to payment, from the general funds of the bank over the preferred claims specified in section 19 of the act of August 26, 1925 (Ga. L. 1925, pp. 119, 129). The deposit of the money and the taking from the bank of the time certificate therefor, bearing interest, put the obligation of the bank represented by such certificate in the place of the pension money, and the money due on such obligation could
Judgment reversed.
Dissenting Opinion
dissenting. For the reasons given by the Court of Appeals,. and the authorities cited, I dissent from the decision rendered in this case by the majority of the court. The Penal Code (1910), § 1495, which exempts pensions of confederate soldiers and their widows “from garnishment and' all other legal process [italics mine], no matter in whose hands the pension or pensions may be/5 etc., would be useless if a bank can receive such pension money on deposit with the knowledge that it is such, and, on failure of the bank, have the superintendent of banks distribute this pension money along with other assets of the bank to the general depositors of the bank, without giving the pensioner the protection accorded him by a proper construction of the statute.