Korbly v. Springfield Institution for Savings, 245 U.S. 330 (1917)

Korbly v. Springfield Institution for Savings

Nos. 26

, 27

Argued November 8, 1917
Decided December 10, 1917
245 U.S. 330

APPEALS FROM THE CIRCUIT COURT OF APPEALS

FOR THE FIRST CIRCUIT

Syllabus

Under the National Banking Act, the Comptroller has discretionary power to withdraw an assessment on shareholders before it is paid, or when partly paid.

Upon the evidence, held that certain sums paid by savings banks to the receiver of a national bank in which they held shares were intended to be applied against their liabilities under the National Banking Act, to enforce which an assessment, made by the Comptroller, was then outstanding. A second assessment, exceeding the differences between their statutory liabilities and the amounts so paid, was void.

In determining the effect of certain payments made by the trustees of savings banks, the court here assumes, in the absence of contrary evidence, that it was the purpose of the trustees to act within their powers, and heeds the settled rule that, when neither debtor nor creditor has applied payments before the controversy has arisen, the courts will apply them in a manner to accomplish the ends of justice.

218 F. 814 affirmed.

The cases are stated in the opinion.