The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-11-27
SUPREME COURT
From Divide County

FROM DIVIDE county
County of Divide, municipal cor
poration, Plaintiff and Respond
ent,
L. r. Baird, as receiver of the First
State Bank of Wildrose, (substi-
tutcd for said bank as q defend |
anti, Defendant and Appellant.
and +,
c. A. Christianson, ct al. Defendants
and Respondents.
Syllabus:
1. The business of banking is at
fectcd with public interest and the
legislature may prohibit it alto
gether, or may prescribe the condi-
tions under which 1t may be con-
Quoted.
2. "A bank has such powers - alc
expressly given it; these are express
powers. In addition, it may exercise
certain powers which are incidental
to those expressly given; but the
incidental powers are such only as
are necessary to carry on the busi-
ness of banking, that is. such a. are
incidental to the powers expressly
enumerated.
3. A banking corporation il crc-
ated for more limited and special
purpose than is . corporation organ
lied under the general statutory
charter, for the purpose Of conduct
ing ordinary business; it 10 the gram
/ tee of the exclusive privilege to do
j specified business In . manner cir
cum stanced by definite restrictions.
It is wholly the creature Of statute;
and it does business by legislative
grace.
j 4. The pledging of assets to Sc
cure q general deposit cannot be sus.
}: tai power, necessary to carry on the
business Of banking. An attempt to
pledge goes beyond the charter pow
crs Of the corporation and Is not An
incident to the privilege to receive
s. The legislature. has prescribed
the mode in which . bank may re-
ceive and . public corporation make
. deposit Of spublic funds. That
mode 10. BY peraonal Or surety
: bond a. security. This statute 10
part Of the corporate charter. inso..
: far a. it relates to the exercise q
) power by = bank. The power . cx,
press, not Incidental Or implied; and
when Legislative enactment pre-
scribes one mode Of exercising ~
!: express power or prlyiis9e' \, ,im n;ns.
power, IN any other way; 100. h,, +
.; lreeeiyable 10 wholly gratutk0us, ont
which the public board could not g.
. quirc or. the henh make, sven hae
!. the latter been -Sht6orixed, w The ID
s1 rectorS, such pledge II no part q IN
~ contract Of depoiit nor - Il a an
4 legal sense . part Of the considefa
II II I. The iesislssure has 81 al time
!, since statehood recognized . dtattnc
: ton between o loan and deposit g
Q money; and in the case ot the funo
LOT. public corporation 1oane have peet
i proh ibited while deposite ehereo
have been sanctioned. by, AN ron
! 1.-THE fact that a bank. May &eenfe !!
: loan, by pIedging ~ bills, recsly1ele
the Inference % not wertanted ~
. the legislature intsnaoa 81 ~
2 banks the power e plsdeo 1assi. !!
II sets to secure either = public or !
Drsiy ]. *. d ssss.s:,, es,d,sor. ~
dIare innocent .pArtie4 and h9ye 1q4l
~ ties which are superior - eno49sa
{. . county seeking TO enforce
LOT assets 70 seeurela nvnje
when the dsfaRse Of ultra ytres =
N interposed against the public 4s0l
leJ bofhtiou. Al between The .cre9ito{
D and depository ~ ~. tnpQt xe9k penl
lwhoSe cohtraetual IolaelQn !, -
Jcorporafion Va egeaf4 !e1U43E
y intyey vifes-and thespIetnesS1. 49,
n cpntract Of nledee ,Naae W. w
~ az the hank, the foxMers nps{ IL ~
,fI 4prred. and tblys ~ ], n9S 80 q
- 70 Asssrt the ycHs % sSH,s 4i I'M