The Waterbury Democrat., 1932-05-24

collateral the receiver would put up securities, first mortgages, col lateral loans and bills discounted, the interest from which would act to set off the cost of the loan. The loan was to be of three years dura- ton and if necessary an extension of time would be granted of two more years duration. Under no circumstances would the loan run over five years.
 The 20 lawyers who will be called upon to sign the stipulation agreement reserving the questions individuals who have filed claims against the Merchants Trust Co since its closing.
 After the Reconstruction Finance corporation notified the local re- ceiVer that 1t would have to have some authority for granting tho loan, 1t was decided by the receiv- CT that 1t would take up too much time to bring about results. How ever, when the New Haven firm was appointed to act as counsel for the Reconstruction Finance cor poration in Connecticut, Q repre-. sentative of that office explained that should the receiver cooperate in securing Q decision on the ques- tions, 1t would be very helpful to the corporation in acting on other questions. When this was explained to the court 1t was decided to CO., operate.
 The questions upon which the advice of the supreme court Is de-
 ASHas the superior court juris- S.A kA xRk 1a vtDn laA receiver of the Merchants Trust Co to borrow money from the Recon struction Finance corporation to pay a dividend to depositors in the Merchants Trust Co?
 s"Has the superior court jurls- diction and power to authorize the receiver for the Merchants Trust Co to borrow money from the Re- Finance corporation to provide funds for or to assist in the reorganization and reopen ing of the Merchants Trust Co for the conduct of It's normal banking
 "IIas the superior court jurls- diction and power to authorize the receiver of the Merchants Trust Co to pledge assets of tho Mcr- chants Trust Co as collateral se- curity for the repayment of loan made by the Reconstruction Finance corporation to the receiver of the Merchants Trust Co?
 If ( loan Is made to the re- ceiver of the Merchants Trust Co by the Reconstruction Finance corporation, will such loan be re- and expenses of settling the affairs af thnf M n k a tSt nrt.at COp
 If repayment of such q loan Is chargeable to the charges and expenses of settling the affairs of the Merchants Trust Go how shall such charges and expenses be ap- portioned as between the funds payable to savings depositors and commercial depositors respective
 If loan is made to the re- ceiver of the Merchants Trust Co by the Reconstruction Finance corporation and the proceeds of such a loan devoted solely to the repayment of a dividend to sav- ings depositors in the Merchants Trust Co and such q loan secured by collateral securities segregated as an asset in its savings depart ment, will the heTrepayment of such Q loan be repayakle by the receiv- CT as part of the charges and ex- penses of settling the affairs of the Merchants Trust Co and charge able solely against the Assets of It's savings department? %
 If a loan Is made to the rec ceiver of the Merchants Trust Co by the Reconstruction Finance corporation and the proceeds of such loan devoted solely to the payment of a dividend to savings depositors in the Merchants Trust Co and such loan secured by col lateral securities segregated As an asset of its savings department, will the repayment of such q loar be repayable by the recciver af part of tho charges and expenses of settling the affairs of the Mer- chants Trust Co in preference to any payment to be made td depos- itors of all cIessessv .