Norwich bulletin., 1914-04-30

course of business before the insol- vency may be set off. The balance only is an asset of the insolvent
 To this general rule there are cer- tain limitations which do not con- cern us in this case. One of these Is that set off cannot be allowed when it will destroy the order or equality of distribution of the insolvent estate provided by statute.
 Ruling on Notes.
 Against the nine notes. upon some or all of which Norwich Overall and Shirt Co.,, Davidson, Rosenberg Jacob Gordon and David Gordon are mak- CTS, may be set off pro rata the deposit in the commercial department Of Nor wich Overall and Shirt company
 Gordon has the right to set off his deposit in the commercial department against his loans of s700 and $500.
 The estate of Turner may set off the deposit of Turner in the commercial department against his loan of S2.000 from it.
 We are also asked whether the bor- rower from the commercial depart ment may set off against his loan his deposit in the savings department. At the beginning of the opinion we adopt ed the view that the savings depositor is a creditor of the company for the whole of his deposit. and that he is additionally protected by the statute which provides that the investments of the savings department shall be first used to pay savings depcsitorS. These conclusions might suggest a re- suit that the depositor in the savings department should first exhaust his deposit and then set off merely the balance remaining due him against his debt in the commercial depart ment,
 Only Practicable Rule.
 But the only practicable and work -r11A fhA off ,f savings deposit against the loan from the commercial department. Such a rule may benefit the savings depositor by increasing his proportion in tine savings assets although diminishing his dividend from the assets of the commercial department. Likewise 1t may benefit this borrower and deplcte the assets of the commercial depart ment. But this result to the borrow CT and to the commercial department is what will happen where the de- posit of a borrower in the commercial denartment is set off against his loan.
 If the rule should be adopted that the set off allowed should only be the amount of the balance due after re- Ceipt of the dividend from the savings collect such loans until all the savings investments were liquidated and paid over. This would prejudice the bor- rower as the interest upon his loan would continue. And It would de'ay the settlement of the estate add to -he administration, and accounting bur 6ens of the receiver, and by deferring the payment of dividends to the de- [ ositors in all likelihood lose the gain to them from the adoption of this rule in place of that adopted by us
 Simple and Easy Way.
 The rule we adopt is far simpler end better adapted to the purposes oe business. The simpler the rules of .aw affecting business relations can be made the better for bus asss.
 We can see no adequate roaSnn Tor creating out of this situation an eG- ce rt!on to the ordinar" rnie pesrnit- t:r the set off unless t be he'd that the savings department ard the eon- ntei cial department were. in faeF. sHH- araie and Independent inyti-'ttiuns.
 In some respects th5 relation De- tween these depositers -s he. unlike tha. Of depositors in seJ tsA'e ihstisu- tions. The law required the funds from the savings department 70 be kert separate, and invested in invest ments required by law for savines hank deposits and required the eoni- rany to pay the same tax as paid by savings banks but did not require It to maintain the same statutory reserve as they were required t.
 In other features sulGar1entaI dii-