City of Marion v. Sneeden - 291 U.S. 262 (1934)
U.S. Supreme Court
City of Marion v. Sneeden, 291 U.S. 262 (1934)
City of Marion v. Sneeden
Argued December 7, 8, 1933
Decided February 5, 1934
291 U.S. 262
1. Under the national banking laws, a national bank has no power to pledge its assets to secure a deposit of public money of a state, or of a subdivision of a state, unless it is located in a state in which state banks are so authorized. Act of June 25, 1930. P. 291 U. S. 268.
2. The State of Illinois has not conferred upon its banks the power to pledge assets to secure deposits of political subdivisions of the state. P. 291 U. S. 269.
3. Where a national bank, before becoming insolvent, made an ultra vires pledge of bonds to secure a deposit, its receiver was entitled to recover them unconditionally for the benefit of the general creditors of the bank. Texas & Pacific Ry. Co. v. Pottorff, ante, p. 291 U. S. 245. P. 291 U. S. 272.
64 F.2d 721 affirmed.
Certiorari, 290 U.S. 617, to review a decree which reversed a decree of the District Court, 58 F.2d 341, dismissing a bill brought by the receiver of an insolvent national bank to obtain possession of bonds which the bank had pledged as collateral security for a deposit of public moneys by a city.