Henderson v. Henderson

Transfers of secured loans and parts thereof between banks resulted in a claim by one of them to a portion of the proceeds of the security. The court below upheld the claim to the extent of $75,276.76. Review of the judgment to that effect is here sought.

At the times material herein, one Wing-field was president and majority stockholder of each of eleven different banks in Nevada. One Sheehan was vice-president of most of such banks and with Wing-field controlled the operations of such banks. In the group were the First National Bank of Winnemucca, hereafter called the Winnemucca bank, and the Reno National Bank, hereafter called the Reno bank. The Winnemucca bank had opportunities to make loans in excess 'of the amount legally possible to one borrower, and the practice of transferring the excess of the loan over the legal limit to the Reno bank was followed. The Reno bank would credit the account of the Winne-mucca bank upon receipt of notes representing such excess. ' The Winnemucca bank would endorse the notes “without recourse” on it. Some of the notes, in turn, were transferred by the Reno bank to other banks in the group.

*865 Mortgages were taken to secure the notes,…