Federal Deposit Insurance Co. v. Leggett
| Decision Date | 12 October 1942 |
| Docket Number | 4-6741 |
| Citation | 164 S.W.2d 882,204 Ark. 780 |
| Parties | FEDERAL DEPOSIT INSURANCE COMPANY v. LEGGETT, BANK COMMISSIONER |
| Court | Arkansas Supreme Court |
Appeal from Pope Chancery Court; J. B. Ward, Chancellor; reversed.
Decree reversed and cause remanded.
Francis C. Brown, John L. Cecil, Owens, Ehrman & McHaney and Herschell Bricker, for appellant.
Hays Wait & Williams and Henderson, Meek & Hall, for appellee.
This is an appeal from that part of the decree of the chancery court of Pope county holding that appellant, Federal Deposit Insurance Corporation, was subrogated under the law to the extent only of the amount paid by it to each insured depositor of the Merchants & Farmers Bank, Atkins Arkansas, insolvent, then in the course of liquidation, and was not entitled to recover interest on the amount it paid the depositors.
The facts are undisputed and are summarized in statements made by learned counsel for appellant and appellee in their respective statements of the case. We glean from their respective statements of the case that the Merchants & Farmers Bank, Atkins, Arkansas, was, on and prior to the 23rd day of March, 1939, "state nonmember" bank, an insured bank, within the meaning of § 264 (c), Title 12 U.S. C.A., and its depositors were insured by the appellant to the extent provided by law; that at the close of business on March 23, 1939, the Bank Commissioner of the State of Arkansas, pursuant to the provisions of act 113 of the Acts of the General Assembly of the State of Arkansas of 1913 and acts amendatory thereto, took charge of the property and assets of said bank; that at the time the bank was closed there were no outstanding liabilities against it other than liabilities to the depositors and to the stockholders; that the total deposits aggregated $ 188,561.96; that after all offsets and inventory adjustments were made there remained $ 169,120.32 of insured deposits and $ 19,441.60 of uninsured deposits; that appellant paid $ 169,120.32 to the insured depositors and received an assignment and subrogation agreement from each depositor transferring, setting over and assigning to the appellant all claims against said bank and its stockholders, arising out of such insured deposits; that the appellant filed claims with W. H. Bost, special bank commissioner in charge of the liquidation of said bank, in the total sum of $ 169,120.32 with such interest thereon as is allowed by law; that the principal amount advanced by appellant, to-wit: $ 169,120.32, was allowed and paid to appellant by the special deputy bank commissioner out of the assets of the bank; that the unsecured depositors and all expenses incident to the liquidation of the bank were paid in full leaving sufficient assets with which to pay appellant interest on the amounts it had advanced to pay the insured depositors unless said excess should be used to pay the preferred and capital stock owners before paying the interest to appellant on the amounts it had advanced.
On or about the 25th day of January, 1941, appellant made demand upon the receiver, or liquidating agent, for the payment of $ 3,685.67 which it claimed as interest upon the amounts paid out by it, calculated at six per cent. per annum from the date of the closing of said Merchants & Farmers Bank, on the 23rd day of March, 1939, until it received its full repayment; that appellant, when it took the assignment from each depositor to all claims against the bank and stockholders arising out of the insured deposits, paid no interest to the depositors.
Based upon the facts detailed above, in addition to denying appellant the interest claimed, the court declared the law to be, in the decree rendered by him, that depositors in a bank which suspends payment to its depositors, and is taken over for liquidation by the Bank Commissioner of the State of Arkansas, are entitled to interest on such deposits from the date of such...
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