Fox-Woodsum Lumber Co. v. Bank of America National Trust & Savings Ass'n

A hearing was granted in this cause after decision in the District Court of Appeal, Second Appellate District, Division Two, not because of any dissatisfaction with the conclusion there announced but because we were unable to subscribe to all of the reasons advanced in support thereof. The circumstances giving rise to the litigation are adequately stated in the opinion of that court and we therefore adopt its recitation of the facts as follows:

At all times material to the disposition of this cause section 2 of the Corporate Securities Act read in part as follows: “ . . . The following words have in this act the signification attached to -them in this section, unless otherwise apparent from the context: . . .

The final clause of subsection c, which excepts or exempts from the operation of the act banking corporations organized under the laws of this state only when issuing their own securities against their own assets, and thus expressly subjecting such banking corporations to the provisions of the act when issuing other securities, was added in 1923. Thus, it was in 1923 that for the first time banking corporations of any kind were brought within the purview of and subjected to…