Court Opinion

ID: 9829686
Source: CourtListenerOpinion
Date Created: 2023-09-01 19:32:13.767643+00
Date Added: 2024-06-11T07:43:04.277928
License: Public Domain

On Motion for Rehearing.
The motion recites as follows: “The evidence in this case shows that at the time the bank reduced its capital stock it was owing about a million dollars, and that at the time it failed practically all of this indebtedness existed and was unpaid. The evidence further shows that the bank had been fully liquidated and that the funds derived from the liquidation, together with the previous assessment levied upon the $100,000.00 capital stock of the bank, were insufficient to pay such indebtedness. It is upon this state of facts that we base our contention that the cancelled stock was liable to assessment to pay the debts of the bank existing at the time it reduced its capital stock.” We are asked to make findings on the aboye facts. Such facts appear in the agreed statement of facts, and are here adopted.
In the original opinion we determined, and do here now do.so, that, by agreement made during the trial of the case, “the issue of insolvency at the time of the reduction of the capital stock is withdrawn from this case,” and also the effect of the evidence was agreed upon that the statements of liabilities and resources of the bank were “not to be considered for the purpose of tending to show insolvency of the bank at the time of reduction of capital stock.” In the face of the agreement, presumed insolvency at the time of reduction may not be indulged in the evidence from the bare fact that a month after the reduction the bank was placed in the hands of the banking commissioner, and its assets after liquidation failed to discharge its indebtedness. Consequently the mere fact of reduction would not afford ground of liability for assessment, in the absence of insolvency of the bank at the time of the reduction, liability against the appellee may not be predicated upon the independent equitable ground of having acted in fraud upon creditors by the act of reducing the capital stock, because, as stated in the original opinion, the rights of creditors were not violated or infringed upon. The facts admittedly show, and there is no contention otherwise, that the surplus capital remaining, after the reduction to the amount of $100,000, was not withdrawn or distributed among the stockholders at the time of reduction or after-wards. Such surplus remained in the bank, and was appropriated as assets in the liquidation of the bank. Hence, the rights of creditors were not in anywise impaired by actual withdrawal or loss of such amount of capital. It was paid over to them in full amount.
The motion is overruled.