12 U.S.C. § 91 — Transfers by bank and other acts in contemplation of insolvency

submitted date unrecorded by Congress to r/title-12-BANKS-AND-BANKING · 166 words · no verdicts yet

in plain englishAI-generated · not legal advice

Transfers a failing bank makes to favor one creditor over others are void. This covers debt transfers, mortgage assignments, deposits, and payments made after or in expectation of insolvency. Courts also cannot attach, enjoin, or execute against the bank or its property before a final judgment.

If a national banking association transfers its notes, bonds, bills of exchange, or other evidence of debt owed to it, or transfers deposits credited to it; assigns mortgages, real estate securities, judgments, or decrees in its favor; deposits money, bullion, or other valuables for its own use or for a shareholder's or creditor's use; or makes any payment — and this happens after the bank committed an act of insolvency, or while expecting to, with the goal of keeping its assets from being applied the way chapter 4 of title 62 of the Revised Statutes requires, or with the goal of favoring one creditor over another — that transfer, assignment, deposit, or payment is completely null and void. This does not apply to payments made on the bank's circulating notes. Also, no court may issue an attachment, injunction, or execution against the association or its property before a final judgment in any lawsuit, in any state, county, or municipal court.

the actual law source: uscode.house.gov ↗public domain

All transfers of the notes, bonds, bills of exchange, or other evidences of debt owing to any national banking association, or of deposits to its credit; all assignments of mortgages, sureties on real estate, or of judgments or decrees in its favor; all deposits of money, bullion, or other valuable thing for its use, or for the use of any of its shareholders or creditors; and all payments of money to either, made after the commission of an act of insolvency, or in contemplation thereof, made with a view to prevent the application of its assets in the manner prescribed by chapter 4 of title 62 of the Revised Statutes, or with a view to the preference of one creditor to another, except in payment of its circulating notes, shall be utterly null and void; and no attachment, injunction, or execution, shall be issued against such association or its property before final judgment in any suit, action, or proceeding, in any State, county, or municipal court.

Source credit: (R.S. § 5242.)

history & why it existsrecord from the source credit

A history note hasn’t been published yet.

all 0 arguments · sorted by: best

no arguments yet — make the first case