Cocke v. . Hood, Comr. of Banks

170 S.E. 648, 205 N.C. 832, 1933 N.C. LEXIS 613

Opinion

Per OuriaM.

The facts found by the court without objection in this action are substantially the same as in Flack v. Hood, Cormr., 204 N. C., 337, 168 S. E., 520. The judgment is affirmed on the authority of the decision in that case.

If the effect of the decision in Flack v. Hood, Comr., is to give priority upon the assets of a banking corporation organized under the laws of this State, upon its insolvency, to claims arising out of transactions with its trust department, which is maintained under provisions of its charter, authorized by statute (N. C. Code of 1931, section 217(a), and the result is deemed unjust to depositors in its commercial or savings department, the remedy must be had by legislation. So long as a banking corporation organized under the laws of this State, maintains, as authorized by its charter, a commercial, a savings and a trust department, and does business in each department, the decision in Flack v. Hood, Comr., must remain the law of this State. That decision is in accord with the authorities, and with well settled principles of equity, as administered by courts exercising under constitutional provisions, equitable jurisdiction.

Affirmed.