Ticonic National Bank v. Sprague, 303 U.S. 406 (1938)

Please note: this case begins in mid-page. It therefore shares a citation with the last page of the previous case. If you are attempting to follow a link to the last page of 303 U.S. 391, click here.

Ticonic National Bank v. Sprague


No. 374


Argued February 2, 3, 1938
Decided March 7, 1938
303 U.S. 406

CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE FIRST CIRCUIT

Syllabus

1. As an incident to the right to recover the amount of a bank deposit, the depositor is entitled to interest as damages for the failure to pay upon demand. P. 410.

2. The obligation of a national bank to pay interest as damages for detention of a debt is not cut off by suspension of its business and appointment of a receiver. P. 410.

3. The rule that, in pro rata distribution to creditors of an insolvent national bank, interest on claims is limited to interest accrued prior to insolvency does not apply to the claim of a secured creditor against the assets covered by his lien. The secured creditor may enforce his lien against his security to satisfy both principal and interest. P. 411.

90 F.2d 641 affirmed.

Certiorari, 302 U.S. 675, to review the affirmance of a decree of the District Court, 14 F.Supp. 900, ordering the receiver of a national bank to make payment to the present respondents of a sum constituting a trust fund, with interest.