Norwich bulletin., 1914-04-30


 there is no suggestion in the charter that other parts of this statute are affected by the charter; So that claims against the estate must be mar shaiieo In accordance with it's terms. So far as concerns the questions sub mftted to us, there is no inconsistency between the charter and Section 34S2. Both may and should be given com plete effect
 All classes of deposits in the dis tf1bution Of the availS in the hands of the receiver would have shared ratably had not the distributions been affected by P. A. 1907, Chapter S5, Section 1. which provides: All banks and trust companies maintaining a savings department or soliciting or receiving deposits as savings. shall in vest all such deposits hereafter so re- cetved according to the requirements of the statute laws of this state con- corning the investment of deposits in savings banks; and said investments shall be for the exclusive protection of the depositors in said savings de- partment and shall not be liable for or used to pay any other obligation or liability of said bank or trust com pany until after the payment of all or the deposits in said savings depart ment."
 Safeguard for Savings.
 Obviously this provision was in tended to safeguard the savings de- partment deposits of a bank or trust company by requiring, CD that the investment of all such deposits shall be in the investments by law permit ted deposits in savings banks CD that the investments Of such deposits shall be for the exclusive protection Of the depositors In the savings de- partment, and (3) that these invest ments shall be used to pay the sav- ings department deposits before they nt Iioh hi fx- or the bank or trust company
 The purpose of the statute was to add to the protection of the savings department depositor and not to di- m1nish that which he already had. He had by the charter a prior lien upon all of the assets of the company. He had the right to share ratably in the avails in the hands of the receiver in certain order. Neither privilege was taken from him by this statute. Another protectory privilege was add ed to these. If the investments in the savings department should not suffice to pay the savings department de- positor in full the unpaid balance of his deposit was placed on a parity With all other depositors and entitled on distribution to share ratably in the order prescribed by Section 34S2 The certificate of deposit creates the re- lation of debtor and creditor between 1t and the Thames company. It stood in precisely the position of other de- posits in its right to share in the dis tribution of the avails.
 All Savings DePositors on a Parity.
 It follows from what we have said that: All depositors in the several say- ings departments are on a parity; that the said assets "set aside for say 1ngs depoSitorS" are to be applied to the payment ratably of all deposits In the several savings departments af- ter paying the expenses of adminis- tration and taxes: that the avails re- maining In the hands of the receiver are to be appropriated ratably to the payment of the balance of the savings departments after paying the expenses of administration and taxes: that the avails remaining in the hands of the receiver are to be appropriated ratably to the payment of the balance of the savings department deposits and all other deposits; that the balance if any is to be distributed in accordance with Section S4S2; that the $S1035.66 is to be included with the commercial deposits and is not to be treated s included in investments set aside for savings depositors, and that the Doane certificates of deposit are to be included among the commercial de- posits.
 Relating to Setoffs.
 Let us now take up the many oues- tions relating to setoffs
 The Thames company in it's savings department was in reality operating a savings bank.
 The depositors in this department were the equitable owners of the say ings assets set apart in this deDart ment and had made the company their agents to receive. care for and invest their moneys. Each depositor had an equal right to his proportional share of all the funds of this department Any debt he owed to the department was owed to all of its depositors Upon dissolution or insolvency he was en- titled to share in it's assets ratably with other depositors.
 If depositor who was a borrower could set off his deposit at it's face value against his debt. he might se- cure full payment of his deposit and a greater share of the assets than his fellow depositors. This would destroy the rule Of equality and give a great CT share of the assets to the borrow ing than to the non-borrowing depos- itor.
 For these reasons we have held that the depositor in savings bank on the insolvency of the bank cannot set off his deposit against his debt
 Osborne V. Byrne. 42 Conn. 1859. As to Borrowers from Savinqs Dept.
 The same rule must hold in the case Of borrowers from the savings depart uIicHL oI LHe InalneS company. The deposits of Case and of Mrs Turner in the savings department cannot be set off against their loans from it Nor is the situation changed and the rule of equality to be departed from because the borrower in the savings department holds a. deposit in the commercial department.
 If the commercial depositor may set off his deposit against his loan from the savings department, this may diminish the assets of that depart- ment and give this borrower a larger share than other depositors The com mercial deposit of Gordon and of Mrs. Turner cannot be set off against their loans from the savings department. The deposit of Mrs Turner as guar dian Of her minor son in the home de- partment is a savings department de- posit and it cannot be set off against her own loan from that department because set off is not applicable to savings deposits and further, the debt owed by Mrs. Turner is owed in a. different relation from that owed by the savings department to her as guardian.
 She could not. for the reasons stated. set off the deposits now belonging to clal or savings department against her debt due the savings department
 And further her husbands estate has not yet been administered, and so far as appears she does not own either these deposits.
 Copamercial Department Borrower.
 The commercial department borrow CT, unlike the savings department bor- at aff hi alo