Marion National Bank of Marion v. Van Buren Bank, No. 17078
| Court | United States Courts of Appeals. United States Court of Appeals (7th Circuit) |
| Writing for the Court | HASTINGS, Senior Circuit , and SWYGERT and FAIRCHILD, Circuit |
| Citation | 418 F.2d 121 |
| Parties | MARION NATIONAL BANK OF MARION and First National Bank in Marion, Plaintiffs-Appellees, v. The VAN BUREN BANK and William B. Camp, Comptroller of the Currency of the United States, Defendants-Appellants. |
| Docket Number | No. 17078,17114. |
| Decision Date | 06 January 1970 |
418 F.2d 121 (1969)
MARION NATIONAL BANK OF MARION and First National Bank in Marion, Plaintiffs-Appellees,
v.
The VAN BUREN BANK and William B. Camp, Comptroller of the Currency of the United States, Defendants-Appellants.
Nos. 17078, 17114.
United States Court of Appeals Seventh Circuit.
November 5, 1969.
Rehearing Denied January 6, 1970.
Morton Hollander, Chief, Appellate Section, Leonard Schaitman, Attorney, U. S. Department of Justice, Washington, D. C., J. A. Bruggeman, Fort Wayne, Ind., Wasson J. Wilson, Hammond, Ind., Alfred W. Moellering, U. S. Atty., Fort Wayne, Ind., Wilson, Benne, Feingold & Donnersberger, Hammond, Ind., Barrett, Barrett & McNagny, Fort Wayne, Ind., for Van Buren Bank.
George P. Osborn, David L. Kiley, Kiley, Osborn, Kiley & Harker, Marion, Ind., for First Nat. Bank in Marion.
William F. Welch, McHale, Cook & Welch, Indianapolis, Ind., for Marion Nat. Bank of Marion.
Before HASTINGS, Senior Circuit Judge, and SWYGERT and FAIRCHILD, Circuit Judges.
FAIRCHILD, Circuit Judge.
Action by two banks in Marion, Indiana to enjoin the Comptroller of the Currency of the United States from approving, and the Van Buren Bank from carrying out, a plan whereby the Van Buren Bank will open a banking facility in Marion as well as in Van Buren. The district court granted the injuction.1
Marion is a city of about 40,000, the county seat of Grant county. The town of Van Buren is in the same county, twelve miles from Marion. Van Buren has a population of about 1,000.
Van Buren Bank is a state bank and the only bank in Van Buren. It proposes to become a national bank, change its name, increase its capital, open a banking facility in Marion as its main office, and retain its facility in Van Buren as a branch.
On July 19, 1966, Van Buren Bank forwarded three applications to the comptroller and the appropriate regional administrator. They were accompanied and supplemented by a letter of transmittal.
One was an "Application to convert a state bank into a national banking association." It proposed a new name, an increased capital structure, and stated that the bank had no branches, but desired "to move its head office to Marion, Indiana, and retain present head office as branch."
The second was an "Application for a change in location of head office with the present head office to become a branch." It sought permission to change the location of the head office from an address in Van Buren to one in Marion.
The third was an "Application of converting bank for fiduciary powers." For the purpose of this case, this application may be disregarded.
Notice was given to plaintiffs, and objections made. Plaintiffs alleged that
On October 11, 1966 the deputy comptroller informed the Van Buren Bank that, subject to fulfilment of certain conditions, preliminary approval had been given to convert to a national bank under the title "Citizens National Bank of Grant County", to relocate the main office at Marion with a branch office at the present address, and to increase the capital.
Plaintiffs brought this action. The Van Buren Bank stipulated to their standing. The comptroller did not, but has not seriously contested it on appeal.
Such aspects of the transaction as conversion to a national bank, change of name, and change of capital structure present no issue. We can consider the matter as if Van Buren Bank were a national bank with sufficient capital to meet the requirements of having its head office in one community and a branch in the other.
As we see it, the issue is whether Indiana law would affirmatively permit a state bank to branch in like manner under like circumstances.
Relocation of a national bank is permitted in certain circumstances, and with the approval of the comptroller, by 12 U. S.C. § 30. The propriety of the move is not made to depend on state law.
Creation of a branch of a national bank must also have approval of the comptroller, but in addition the statute law of the particular state must specifically and affirmatively grant such authority to state banks. 12 U.S.C. § 36(c) provides:
"A national banking association may, with the approval of the Comptroller of the Currency, establish and operate new branches: * * * (2) at any point within the State in which said association is situated, if such establishment and operation are at the time authorized to state banks by the statute law of the State in question by language specifically granting such authority affirmatively and not merely by implication or recognition, and subject to the restrictions as to location imposed by the law of the State on state banks. * * *"
The history of the provision is outlined in First Nat. Bank of Logan, Utah v. Walker...
To continue reading
Request your trial
-
Marshall & Ilsley Corp. v. Heimann, 80-2251
...493, 62 L.Ed.2d 320 (1979); First Nat'l Bank of Crown Point v. Camp, 463 F.2d 595 (7th Cir. 1972); Marion Nat'l Bank v. Van Buren Bank, 418 F.2d 121, 123 (7th Cir. 1969). The Wisconsin emergency statute, however, provides on its face that the decision that a bank is failing and must be oper......
-
Synovus Financial Corp. v. Board of Governors of Federal Reserve System, 89-1394
...368 (8th Cir.1980) (§ 30 provision that OCC approve bank name changes preempts state law); Marion Nat'l Bank of Marion v. Van Buren Bank, 418 F.2d 121, 123 (7th Cir.1969) ("Relocation of a national bank is permitted in certain circumstances, and with the approval of the comptroller, by 12 U......
-
Ramapo Bank v. Camp, 18022 and 18117.
...We are aware that a contrary result was recently reached by the Seventh Circuit in Marion National Bank of Marion v. Van Buren Bank, 418 F.2d 121 (7 Cir., 1969). There the Court held there must be a conjunctive reading of Sections 30 and 36(c) with respect to an application for relocation o......
-
Citizens Nat. Bank of Grant County v. First Nat. Bank in Marion, 2--773A172
...decision was modified on appeal by the Seventh Circuit Court of Appeals. Marion National Bank of Marion v. Van Buren Bank (7th Cir. 1969), 418 F.2d 121. Both parties now assert that the appellate decision was a vindication of their respective positions. We need not concern ourselves with th......
-
Marshall & Ilsley Corp. v. Heimann, No. 80-2251
...493, 62 L.Ed.2d 320 (1979); First Nat'l Bank of Crown Point v. Camp, 463 F.2d 595 (7th Cir. 1972); Marion Nat'l Bank v. Van Buren Bank, 418 F.2d 121, 123 (7th Cir. 1969). The Wisconsin emergency statute, however, provides on its face that the decision that a bank is failing and must be oper......
-
Synovus Financial Corp. v. Board of Governors of Federal Reserve System, No. 89-1394
...368 (8th Cir.1980) (§ 30 provision that OCC approve bank name changes preempts state law); Marion Nat'l Bank of Marion v. Van Buren Bank, 418 F.2d 121, 123 (7th Cir.1969) ("Relocation of a national bank is permitted in certain circumstances, and with the approval of the comptroller, by 12 U......
-
Ramapo Bank v. Camp, No. 18022 and 18117.
...We are aware that a contrary result was recently reached by the Seventh Circuit in Marion National Bank of Marion v. Van Buren Bank, 418 F.2d 121 (7 Cir., 1969). There the Court held there must be a conjunctive reading of Sections 30 and 36(c) with respect to an application for relocation o......
-
Citizens Nat. Bank of Grant County v. First Nat. Bank in Marion, No. 2--773A172
...decision was modified on appeal by the Seventh Circuit Court of Appeals. Marion National Bank of Marion v. Van Buren Bank (7th Cir. 1969), 418 F.2d 121. Both parties now assert that the appellate decision was a vindication of their respective positions. We need not concern ourselves with th......