In re Liquidation of Bank of Pender

• Decision Date: 08 February 1933
• Docket Number: 284.
• Citation: 167 S.E. 561,204 N.C. 143
• Parties: In re LIQUIDATION OF BANK OF PENDER.
• Court: North Carolina Supreme Court

167 S.E. 561

204 N.C. 143

In re LIQUIDATION OF BANK OF PENDER.

No. 284.

Supreme Court of North Carolina

February 8, 1933

Appeal from Superior Court, Pender County; Grady, Judge.

Proceedings in the matter of the liquidation of the Bank of Pender. From a judgment denying the claim of Fitzhugh Lee as a preferred claim, the claimant appeals.

Judgment affirmed.

The parties waived a jury trial and the judge found the facts. These facts are substantially as follows: The Bank of Pender closed its doors on January 6, 1932, and its assets were thereby vested in the commissioner of banks. Prior to December 29, 1931, Fitzhugh Lee had on deposit in the savings department the sum of $3,714.26, and on said date he drew a check for said sum payable to his wife, Mrs. Fitzhugh Lee. Mrs. Lee thereupon requested the bank to issue to her a cashier's check for said sum of money and told the president of the bank "that she was withdrawing the money for the purpose of buying Liberty Bonds." Branch informed her that he would buy bonds for her, and on December 30, 1931, he wrote a letter to Fitzhugh Lee requesting that he mail cashier's check to the bank. On January 4, 1932 Mrs. Lee indorsed the cashier's check and Fitzhugh Lee took the same in person to Branch, president of the bank, and delivered said cashier's check to said president properly indorsed by him, and at the same time Fitzhugh Lee delivered to the said C. C. Branch, president, the sum of $2,460 in currency. "He requested Branch to place $74.26 of said amount to his credit and to purchase for him $6,100.00 in Liberty Bonds with the balance. Said cashier's check was marked paid on January 5, 1932, by said Bank of Pender, and thereupon C. C. Branch, president directed Miss Maude Paddison, assistant cashier of said bank to make a draft on the North Carolina Bank & Trust Company of Wilmington for $3,600.00, and another draft on the American Bank & Trust Company of Richmond for $2,500.00, both in favor of Frederick E. Nolting, of Richmond, Virginia, which said two drafts were accordingly drawn and forwarded to said Nolting by C. C. Branch, president of said Bank of Pender." Accompanying the draft was a letter directed to Nolting, requesting the purchase of $6,100 of Liberty Bonds. Fitzhugh Lee received $2,500 in Liberty Bonds from Nolting & Co., purchased with the draft on the Richmond Bank "which cleared in due course, but the Bank of Pender closed its doors on January 6, 1932, and the draft on the North Carolina Bank & Trust Company of Wilmington did not clear in the meantime, and was never paid." Said draft for $3,600 was held by ...