Court Opinion

ID: 9419095
Source: CourtListenerOpinion
Date Created: 2023-08-02 22:45:51.268383+00
Date Added: 2024-06-11T13:55:36.309540
License: Public Domain

*529Mr. Justice Frankfurter
delivered the opinion of. the Court.
This is a companion case to Inland Waterways Corp. v. Young, ante, p. 517. The District National Bank pledged some of its assets to secure deposits made by the Secretary of War on behalf of the Panama Canal Zone. The Bank became insolvent in 1933, and the pledged assets were sold. Respondent, the Bank’s! receiver, brought this action to recover that part of the proceeds which represented an amount in excess of dividends paid to the ordinary depositors. The District Court held that the pledges were ultra vires and gave judgment for the respondent. The Court of Appeals affirmed. 69 App. D. C. 280; 100 F. 2d 690.
For the reasons stated in. Inland Waterways Corp. v. Young, ante, we are of opinion that the pledges given by the Bank were valid, and- that the .judgment below should be

Reversed.