Texas & Pacific Railway Co. v. Pottorff, 291 U.S. 245 (1934)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Texas & Pacific Railway Co. v. Pottorff, 291 U.S. 245 (1934)
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Texas & Pacific Railway Co. v. Pottorff No. 12 Argued December 7, 1933 Decided February 5, 1934 291 U.S. 245
CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE FIFTH CIRCUIT
Syllabus
l. A national bank has no power to pledge its assets to secure private deposit. P. 253.
2. Such pledges are neither customary nor necessary in the business of such banks, and are inconsistent with provisions of the National Banking Act designed to secure uniform treatment of depositors and ratable distribution of assets in case of disaster. Pp. 254-255.
3. The Acts of Congress authorizing national banks to give security for deposits of specified public funds do not impart or imply power to pledge assets to secure private deposits. P. 257.
4. The contention that, since the relation of bank to depositor is that of debtor and creditor, and since a national bank may borrow money upon a pledge of assets, it my likewise pledge assets to secure private deposit is untenable. The difference between deposits and loans is fundamental and far-reaching. P. 259.
5. A national bank is not estopped to deny the legality of an ultra vires pledge of assets by which it obtained deposits; still less is its receiver when the bank has become insolvent. P. 260.
6. The fact that a general deposit was obtained by the bank on the faith of an ultra vires pledge of its assets does not create a constructive trust or confer upon the depositor a preference over other creditors in the event of the bank’s insolvency. P. 261.
63 F.2d 1 affirmed.
Certiorari, 290 U.S. 609, to review the affirmance of a decree dismissing a bill brought by the Railway against the receiver of a national bank, and granting relief to the receiver on a cross-bill.
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Chicago: U.S. Supreme Court, "Syllabus," Texas & Pacific Railway Co. v. Pottorff, 291 U.S. 245 (1934) in 291 U.S. 245 291 U.S. 246–291 U.S. 251. Original Sources, accessed November 22, 2024, http://originalsources.com/Document.aspx?DocID=JRCVXEMHVZKDX89.
MLA: U.S. Supreme Court. "Syllabus." Texas & Pacific Railway Co. v. Pottorff, 291 U.S. 245 (1934), in 291 U.S. 245, pp. 291 U.S. 246–291 U.S. 251. Original Sources. 22 Nov. 2024. http://originalsources.com/Document.aspx?DocID=JRCVXEMHVZKDX89.
Harvard: U.S. Supreme Court, 'Syllabus' in Texas & Pacific Railway Co. v. Pottorff, 291 U.S. 245 (1934). cited in 1934, 291 U.S. 245, pp.291 U.S. 246–291 U.S. 251. Original Sources, retrieved 22 November 2024, from http://originalsources.com/Document.aspx?DocID=JRCVXEMHVZKDX89.
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