Andrew v. Odebolt Sav. Bank of Odebolt
| Decision Date | 01 July 1927 |
| Docket Number | 37986 |
| Parties | L. A. ANDREW, State Superintendent of Banking, Appellant, v. ODEBOLT SAVINGS BANK et al., Appellees |
| Court | Iowa Supreme Court |
Appeal from Sac District Court.--R. L. MCCORD, Judge.
Plaintiff appeals from a judgment overruling motion to dismiss in an action to set aside a transfer of promissory notes by a savings bank to the county treasurer, made as security for payment of a public deposit.
Affirmed.
Ben J Gibson and Malcolm Currie, for appellant.
A. B Walter and W. A. Helsell, for appellees.
This is an action in equity, to set aside the transfer and assignment of two promissory notes for $ 5,000 each, together with a mortgage upon certain real estate in Sac County, to W. A Cobb, county treasurer, by the Odebolt Savings Bank, as security for a deposit of the public funds of Sac County. The case was disposed of in the district court on a demurrer to the answer. Prior to the deposit by the county treasurer of public funds in the Odebolt Savings Bank, the board of supervisors of Sac County passed an appropriate resolution authorizing such deposit, and requiring the execution of a bond in the sum of $ 20,000. A bond was executed on the 10th day of January, 1925, duly filed in the office of the county auditor, and approved by the proper officers. Prior to the 10th day of January, 1925, the date of the assignment and transfer of the notes and mortgage, the board of supervisors of Sac County and the county treasurer demanded additional security of the Odebolt Savings Bank. Instead of giving an additional bond, the bank assigned and transferred the notes and mortgage to the county treasurer, as already stated, who received the same and caused the same to be recorded in the office of the county recorder and duly filed in the office of the county auditor. The bank closed its doors January 12, 1925, and its affairs were immediately taken over by the superintendent of banking, as receiver. This action is prosecuted by the superintendent of banking, for the purpose of having the transfer and assignment of the funds and mortgage set aside, and for the recovery thereof for the use and benefit of the depositors of the bank.
The sole contention of appellant is that the officers of the Odebolt Savings Bank were without power or authority to assign or transfer any of the assets of the bank as additional security for public money deposited therewith.
Section 7404 of the Code of 1924, and succeeding sections, make it the duty of the county treasurer to deposit public funds in banks designated by himself and the board of supervisors, by appropriate resolution entered of record, upon the execution and filing of a bond in an amount to be fixed by the board, with sureties to be approved by them. An appropriate resolution was passed by the board of supervisors of Sac County, designating the Odebolt Savings Bank as a public depositary, and requiring it to execute a bond in the penal sum of $ 20,000, with sureties as required by law. A bond in the sum of $ 20,000 was...
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