Capital Savings & Loan Ass'n v. Olympia Nat. Bank

The appellants brought a suit in equity against the appellees to recover collateral securities alleged to have been unlawfully pledged to the appellee state treasurer for the deposit of state funds in the appellee -bank. In the alternative, the bill prayed for the recovery of the cash proceeds received by the state treasurer, in the event that the collateral securities had been sold by him. The appellants also asked, for an injunction to restrain further payments of dividends by the appellee bank receiver to the state treasurer until the common creditors of the bank received dividends equal to those already paid to the state treasurer.

*563 Succinctly stated, the allegations of the bill of complaint are as follows:

On January 22, 1932, the Comptroller of the Currency of the United States took over the affairs of the appellee bank for liquidation, and a receiver was appointed. The appellants were depositors in the bank, and brought the suit on behalf of themselves and other depositors similarly situated, as common creditors, whose deposits aggregate approximately $600,000.

On January 21, 1932, “and for some days prior thereto,” the treasurer of the state of Washington had a…