United States Supreme Court Cases & Opinions

U.S. Supreme Court

American Surety Co. v. Bethlehem Nat'l Bank, 314 U.S. 314 (1941)

American Surety Company of New York

v. Bethlehem National Bank

No. 29

Argued November 12, 1941

Decided December 8, 1941

314 U.S. 314

Syllabus

1. In making the "ratable" distribution of assets of an insolvent National bank required by R.S. 5236, dividends must be declared proportionately upon the amounts of all claims as they stood on the date of insolvency. P. 314 U. S. 317.

2. Where a claim against an insolvent national bank secured by a surety bond is paid in part by collateral and by dividends from the estate and the remainder by the surety company, the surety is subrogated to the right of the creditor in future dividends, and its proportion of future dividends is to be calculated not upon the basis of what it paid, but upon the amount of the original claim. P. 314 U. S. 318.

116 F.2d 75 reversed.

Certiorari, 312 U.S. 677, to review the reversal of a judgment of the District Court fixing dividends in the winding up of an insolvent national bank.

Page 314 U. S. 315