Standard Acc. Ins. Co. v. Luther Williams Bank & Trust Co.

• Decision Date: 14 October 1932
• Docket Number: 22151.
• Citation: 166 S.E. 260,45 Ga.App. 831
• Parties: STANDARD ACC. INS. CO. v. LUTHER WILLIAMS BANK & TRUST CO.
• Court: Georgia Court of Appeals

166 S.E. 260

45 Ga.App. 831

STANDARD ACC. INS. CO. v. LUTHER WILLIAMS BANK & TRUST CO.

No. 22151.

Court of Appeals of Georgia, Second Division

October 14, 1932

Syllabus by Editorial Staff.

State has lien on state depository's property for amount of depository's bond from execution thereof, which extends to all property, including choses in action (Civ. Code 1910 §§ 218, 1252).

State's statutory lien under state depository bond held valid, regardless whether banking act relinquished state's common-law right to priority of payment in liquidation of bank's assets (Civ. Code 1910, §§ 218, 1252; Laws 1919, p. 159, § 19, as amended by Laws 1927, p 199, § 5).

It must be presumed that defunct state depository bank had executed bond required by law (Civ. Code 1910, § 1252).

Error from Superior Court, Bibb County; Louis L. Brown, Judge.

Suit by the Standard Accident Insurance Company against Luther Williams Bank & Trust Company. General demurrer to plaintiff's petition was sustained, and plaintiff brings error.

Reversed.

Park & Strozier, of Macon, for defendant in error.

Syllabus OPINION.

JENKINS P.J.

1. Under Civil Code 1910, § 1252, state depository banks are required to give bond "for the faithful performance of all such duties as shall be required of them by the General Assembly or the laws of this State," and such bonds "have the same binding force and effect as the bond required by law to be given by State treasurers."

2. Under Civil Code 1910, § 218, a lien is created in favor of the state, upon the property of the state treasurer, in the amount of the bond required to be given by that official, and upon the property of each of the securities upon his bond, to the amount for which they may be severally liable, from the date of the execution of the bond.

3. Under the foregoing sections of the Civil Code, "from the date of the execution of the bond of a state depository the state has a lien on its property for the amount thereof," and "the lien of the state is not limited to such property of the depository as may be reached by levy and sale, but extends to all the property, including choses in action." Seay v. Bank of Rome, 66 Ga. 609 (2); Simpson & Ledbetter v. Mathis, 79 Ga. 159 (1), 161, 3 S.E. 646.

4. Under the Banking Act of 1919 (Ga. Laws 1919, pp. 135, 159, § 19), the state asserted its common-law sovereign right of priority in the liquidation of the assets of any and all insolvent banks. The act of 1927 (Ga. L. 1927, pp. 195, 199 § 5), omits the provision asserting such common-law sovereign right of the state to priority of payment in the liquidation of insolvent banks. Whether or not, under the rule announced in Cook County National Bank v. U.S. , 107 U.S. 445, 2 S.Ct. 561, 27 L.Ed. 537, such omission, when construed in connection with what might be taken as a complete and comprehensive code of laws governing the entire subject-matter of banking,...