The Laws of the State of New York Relating to Banks, Banking, Trust, Investment, Safe Deposit, Personal Loan Companies and Brokers, Private Bankers, Savings and Loan Associations, Credit Unions and the Land Bank, Together with the Acts
This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1914 edition. Excerpt: ...A trustee of the savings bank, who may be a stockholder in the company in which the property is insured upon which the bank has a mortgage, receives no benefit, direct or indirect, from the bank. The contract is not with the bank, and is not necessarily made with a corporation designated by the bank. The profits derived by the insurance company do not come from the bank, but from the owner of the property by whom the premiums are paid. "Third question. The section under consideration forbids a trustee of a savings bank, either for himself or as agent or partner of others, from borrowing any of its funds or deposits. Is a deposit in a discount bank or trust company of which one of the trustees is a director or stockholder, such a borrowing as is meant by the statute? There is a well-recognized legal distinction between a loan or 'borrowing and a deposit; and the rights and responsibilities of parties under these different species of contract are quite different. '"Receiving deposits, ' said the vice-chancellor, in Leavitt -. Yates (4 Edw. Ch. 165), 'as understood in the practice of banking, is different from borrowing money in the ordinary acceptation of that term, and agreeing to allow interest on moneys deposited with a bank, and giving notes or certificates or any other evidence of debt therefor does not constitute the doing so an act of borrowing.' See, also, to same effect, Payne v. Gardiner, 29 N. Y. 146. "I think the word 'borrowing, ' as used in the section, was intended to be employed in its ordinary legal signification, and does not include deposits of money with banks of discount, and that when a savings bank deposits its funds with said discount bank the latter cannot be said to be a borrower; and the fact of one of the directors...
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