TRANSFER OF STOCK - Continued.
been intrusted by the directors with the duty of transferring the stock of
the bank, his refusal was imputable to the bank; (3) the court below had
power to order the receiver to pay the claim, or certify it to the Comp-
troller. Case, receiver of Crescent City Nat. Bank, v. Citizens' Bank of
Louisiana, 47.
3. As security for loan.] The transfer to a National bank, as security for a
loan, of stock of a corporation whose property is solely real estate, is not
invalid within the National Banking Act, as a loan upon a mortgage se-
curity. Baldwin v. State Nat. Bank of Minneapolis, 278.
Colorable.] See STOCKHOLDER, 25.
1. Exemption from personal liability, how to appear.] A trustee, holding shares
in a National bank, cannot avail himself of his exemption from personal
liability for debts of the bank, unless his trusteeship appears on the books
of the bank. Davis v. Essex Baptist Society, 110.
2. Religious society holding stock bought with bequest.] With a bequest of
money a religious society purchased, and held in its own name, shares in
a National bank. The society had other donations otherwise invested.
Held, that the society was not a trustee, but an ordinary stockholder, and
liable to assessment for debts of the insolvent bank. Id.
1. Bank acting as warehouseman estoppel.] A National bank, which has
wrongfully converted to its own use the property of another, is estopped
from denying its liability to account therefor upon the ground that it re-
ceived and held the property in carrying on the business of a warehouse-
man outside the powers conferred by its charter. German National Bank
v. Meadowcroft, 462.
-] Forfeiture of the privileges and powers of a National bank must
be determined, by a suit brought by the Comptroller of the Currency and
until determined, it may do business; and no person, by a conspiracy to
evade its regulations, may escape liability for borrowed money loaned by
it, upon personal security in the manner authorized. Stephens v. Monon-
gahela National Bank, 398.
3. Lending credit.] Where a party knowingly takes as collateral security
drafts of a National bank, drawn for the accommodation of a customer,
he cannot recover in a suit against the bank in the hands of a receiver.
Johnston v. Charlottesville National Bank, 199.
4. Purchase by bank of its own stock.] A National bank purchased some of its
own stock, and divided it among some of its directors. One of the direct-
ors took some of the stock, giving his note for it, the bank retaining the
certificate, but the stock being transferred to him on the bank books, and
he receiving dividends on it. This director becoming bankrupt, he trans-
ferred the stock to the bank teller, the bank retaining his note. In an
action by the assignee to set aside the transfer as a preference, held, that
the bank had no power to purchase or convey the stock, and no title to it
passed. Meyers v. Valley National Bank, 156.
1. Interest on overdrafts.] A National bank, by charging usurious interest on
overdrafts upon it, loses the right to any interest. Third National Bank
of Philadelphia v. Miller, 378.
2. Note held as collateral for overdrafts.] Where a note is held by a National
bank as collateral for overdrafts upon it, and a suit is brought upon the
note, the action, though nominally upon the note, is actually to recover
those overdrafts as against the makers of the note as sureties. Such
sureties are entitled, in case usurious interest has been charged, to defal-
cate all the interest charged as against the total amount of overdraft
claimed. Ib.
-] The fact that the bank from whom an overdraft was due charged
its customers usurious interest in the same transactions in which it agreed
to pay usurious interest to the plaintiff, does not preclude a defense of
usury by sureties for an overdraft, Ib.
4. Fraud on creditors.] Neither under the National Banking Act nor the
Pennsylvania Usury Act of 1858 is the taking of more than six per cent
interest a fraud upon creditors in itself. Appeal of Second National
Bank of Titusville, 364.
5. General rate regulates right.] The general rate of interest allowed in
Pennsylvania to be taken by State banks is only six per cent. The estab-
lishment of a few banks authorized by special acts of assembly to take
more than this amount is not sufficient to authorize National banks to take
usurious interest under that clause of the National Bank Act allowing
them to charge interest at the same rate as banks of issue organized under
the laws of the State wherein the National bank is situate. Gruber v.
First National Bank of Clarion, 382.
6. State banks of issue.] There are no State banks of issue in Pennsylvania
authorized to charge interest at a greater rate than six per cent. A Na-
tional bank cannot, therefore, claim such privilege. First National Bank
of Clarion v. Gruber, 395.
7. What is purging — extent of forfeiture.] The knowingly taking or receiving,
by a National bank, of a greater rate of interest than is lawful in the State
where it is located is usurious under the National Banking Act, and the
entire interest is forfeited, and the usury is not purged by settlements and
renewal notes without additional usury. Pickett v. Merchants' National
Bank of Memphis, 209.
8. Interest after maturity.] The receipt by a National bank of an usurious
rate of interest upon the discount of a note works a forfeiture of inter-
est accruing after the maturity of the note as well as before maturity.
First National Bank of Uniontown v. Stauffer, 178.
9. Discounting business paper.] A National bank, discounting business paper
at a greater rate than seven per cent, is liable to the forfeiture of double
the excess over seven per cent imposed by the National Banking Act,
although the transaction is not usurious under the State law. Johnson
v. National Bank of Gloversville, 302.
10. Effect of, on guaranty.] A guaranty of negotiable paper discounted by a
National bank is not rendered void by the fact that the bank demanded
and received usurious interest upon the notes. Lazear v. National Union
Bank of Baltimore, 261.
11. Who may recover.] No one can recover usurious interest paid to a National
bank but the party who paid it, and it cannot be set off or recouped by
another party to the paper. Ib.
12. How recovered.] Where illegal interest has been paid to a National bank
upon the discount of negotiable paper, it cannot, in an action upon such
paper, be applied by way of set-off or payment, nor can double the amount
of such interest be allowed upon a counter-claim, but the party is re-
stricted to his penal remedy. Barnet v. Muncie National Bank of Muncie,
Indiana, 18.
-] In no way, either by set-off or original action, can interest over the
legal rate paid to a National bank be recovered, except by way of penalty,
within two years, as prescribed by the National Bank Act. First Na-
tional Bank of Clarion v. Gruber, 395.
14. Bill to recover.] A bill in equity will not lie to recover usury from a Na-
tional bank. Hambright v. National Bank, 419.
15. When a defense.] Where a National bank lends money upon a usurious
contract, and attempts to enforce such contract in a State court, the de-
fendant may insist upon such usury as a defense. National Bank of
Winterset v. Eyre, 234.
16. Jurisdiction of State courts to recover.] State courts have jurisdiction in an
action against a National bank to recover double the amount of usurious
interest paid thereto. Gruber v. First Nat. Bank of Clarion, 382.
-] State courts have jurisdiction of actions against National banks
for penalties and forfeiture prescribed by act of Congress for exacting
usurious interest. Hade, receiver, v. McVay, 353.
-] State courts have jurisdiction of suits against National banks to
recover money paid as usury. Dow v. Irasburgh National Bank of Or-
leans, 421.
-] State courts have jurisdiction of suits to recover such penalty.
First National Bank of Clarion v. Gruber, 395.
20. Set-off — accommodation indorser.] Under the National Bank Act, in an
action upon a note usuriously discounted by a National bank, the amount
of the usury may be set off by an accommodation indorser, although the
note does not carry interest on its face. National Bank of Auburn v.
Lewis, 305.
21. Renewals.] Where there has been a series of renewals for the same loan,
in a suit by the bank upon the last note, the borrower is entitled to a credit
for all the interest paid on the loan from the beginning and not merely the
excess above the lawful rate. Stephens v. Monongahela Nat. Bank, 398.
] In rendering judgment on a promissory note given to a Na-
tional bank, in renewal, into which note illegal interest on the original
note was incorporated, the whole interest of both notes will be disallowed.
Bank of Cadiz v. Slemmons, 361.
estoppel.] Where a National bank makes to one of its
directors a loan of money, which in amount and in the rate of interest is
in contravention of the National Banking Act, the borrower is not estopped
to defend against a recovery of interest. Ib.
24. Payment.] Payments made generally on a promissory note to a National
bank, which note embraces illegal interest, will be applied in satisfaction
of the principal. lb.
See BANKRUPTCY, 138; JURISDICTION, 366; STATUTORY CONSTRUCTION,
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