Yonkers v. Downey,
Annotate this Case
309 U.S. 590 (1940)
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U.S. Supreme Court
Yonkers v. Downey, 309 U.S. 590 (1940)
Yonkers v. Downey
Argued February 29, 1940
Decided April 22, 1940*
309 U.S. 590
1. Concurrent findings of two lower courts accepted here, to the effect that withdrawals of deposits from a national bank were made when there was reason to believe that the bank would be unable to repay its depositors in due course, and with intent to prefer. P. 309 U. S. 595.
2. National banks have no implied power to pledge assets as security for deposits. P. 309 U. S. 595.
3. Rescission by a national bank of an unauthorized pledge securing deposits is not conditioned upon return of the amounts deposited. P. 309 U. S. 595.
4. The Act of June 25, 1930, permits national banking associations to give security for deposits of public money of a State or any political subdivision thereof "of the same kind as is authorized by law of the State in which such an association is located in the case of other banking institutions in the State." Held, that such pledges are not "authorized" by the law of a State (New York) which forbids them as ultra vires, though it conditions rescission upon repayment of deposits made in reliance upon them. P. 309 U. S. 597.
106 F.2d 69 affirmed.
Certiorari, 308 U.S. 547, to review the affirmance of recoveries by a receiver of a national bank of deposits withdrawn from it while insolvent. The case was tried to the court without a jury. 23 F.Supp. 1018.