Source: https://supreme.justia.com/cases/federal/us/324/200/
Timestamp: 2019-04-23 04:02:28+00:00

Document:
The double liability imposed on stockholders of national banks by § 23 of the Act of December 23, 1913, held enforceable against one who sold his shares within sixty days of the closing of the bank while insolvent, even though the sale was made in good faith and though the bank's closing was voluntary. P. 324 U. S. 202.
Certiorari, 323 U.S. 701, to review the affirmance of a judgment against the petitioner here in an action to enforce a national bank stockholders' liability.
We are called upon to determine the application in the circumstances of this case of Sec. 23 of the Act of Dec. 23, 1913, [Footnote 1] which imposes liability upon stockholders of a closed national bank.
which recited that it contemplated "disposing of its current business and thereafter going into voluntary liquidation," sold its business and transferred its assets to the First National Bank of the same city in consideration of the payment of $350,000 and the assumption of its liabilities as disclosed by its books. The purchasing bank retained $110,000 to guarantee the collection of negotiable paper taken over and to cover certain real estate temporarily retained by the seller. American closed its business and promptly distributed the $240,000 cash received ratably amongst its stockholders.
"The stockholders in any national banking association who shall have transferred their shares or registered the transfer thereof within sixty days next before the date of the failure of such association to meet its obligations, or with knowledge of such impending failure, shall be liable to the same extent as if they had made no such transfer."
We are of opinion that the petitioner is within the plain terms of the law. On its face, the Act grants no exemption due to the facts that the sale was made for consideration and in good faith, that, at the time, American was believed to be solvent, or that the existence of the claim ultimately established by the respondents was then not known to the respondents or to the petitioner.
C. 6, 38 Stat. 251, 273, 12 U.S.C. § 64.
American National Bank of Enid v. Crews, 191 Okl. 53, 126 P.2d 733.
Hoehn v. Crews, 144 F.2d 665.
Crescent City Nat. Bank v. Case, 99 U. S. 628; Bowden v. Johnson, 107 U. S. 251; Whitney v. Butler, 118 U. S. 655; Stuart v. Hayden, 169 U. S. 1; Earle v. Carson, 188 U. S. 42; McDonald v. Dewey, 202 U. S. 510.
Fletcher v. Porter, 20 F.2d 23, and Collins v. Caldwell, 29 F.2d 329, are in accord with the decision of the Circuit Court of Appeals in the instant case.
Compare Richmond v. Irons, 121 U. S. 27, 121 U. S. 48, 50.

References: § 23
 § 64
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