Franklin Nat’l Bank v. New York, 347 U.S. 373 (1954)

Franklin National Bank of Franklin Square v. New York


No. 427


Argued March 9-10, 1954
Decided April 5, 1954
347 U.S. 373

APPEAL FROM THE COURT OF APPEALS OF NEW YORK

Syllabus

Insofar as it forbids national banks to use the word "saving" or "savings" in their business or advertising, the New York statute here involved is invalid, because it conflicts with federal laws expressly authorizing national banks to receive savings deposits and to exercise incidental powers. Pp. 374-379.

(a) The provision of § 24 of the Federal Reserve Act authorizing national banks to "continue hereafter as heretofore to receive time and savings deposits" is declaratory of the right of national banks to enter into or remain in that type of business, and their authority to receive savings deposits is not limited or qualified by the expression "continue hereafter as heretofore." P. 377.

(b) Nor are national banks precluded from advertising for the savings deposits which they are expressly authorized to accept. Pp. 377-378.

(c) Congress did not intend to make this phase of national banking subject to local restrictions because of the special significance attached to the word "savings" in some states. P. 378.

305 N.Y. 453, 113 N.E.2d 796, reversed.