Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

United Towns Building & Loan Association v. Schmid

Decided: November 10, 1952.

UNITED TOWNS BUILDING & LOAN ASSOCIATION, LIQUIDATING CORPORATION, PLAINTIFF,
v.
JOSEPH A. SCHMID, JOSEPH R. POWELL AND CHARLES R. YOUNG, SR., TRUSTEES, ETC., DEFENDANTS



Haneman, J.s.c.

Haneman

Plaintiff herein filed its complaint alleging that it was the holder of certain participation certificates issued by the defendant trustees, a part of which certificates read as follows:

"This certificate is issued pursuant to all the terms and conditions of:

1. An agreement entered into by the unsecured depositors and creditors of THE CLEMENTON NATIONAL BANK OF CLEMENTON, N.J. under the terms of Section 207, of the Bank Conservation Act, passed by Congress, March 9, 1933, whereby in order to rehabilitate said bank, and permit it to be returned to its Board of Directors in order that they may negotiate and execute a sale of its assets to the National Bank of Clementon, the unsecured depositors and creditors waived and released unto the Bank a proportion of their respective claims against said bank.

2. An agreement of trust entered into on the fifteenth day of February, 1934 between the Bank and the Trustees whereby the Bank conveyed to the Trustees, in trust for the unsecured depositors and creditors of the Bank, certain assets which were eliminated from the Bank on the occasion of its reorganization, and reopening, on the sixteenth day of February, 1934, to be liquidated by the Trustees, and the proceeds thereof distributed ratably among the unsecured creditors and depositors."

Under the terms of the plan of reorganization, and more particularly on February 15, 1934, after the approval of the requisite number of persons, the Clementon National Bank entered into a certain agreement with the trustees in furtherance and in implementation of the reorganization plan. Under the terms of said agreement the defendants were obliged to liquidate the assets of the said Clementon National Bank and make pro rata distribution to its various creditors.

Paragraph 8 of said agreement provided, in part, as follows:

"8. -- Upon the completion of any sale of the residue of the Trusteed Assets and the distribution of the proceeds thereof, the TRUSTEES shall render their final account showing all receipts and disbursements and shall file the same at the main office of the BANK for inspection by all parties directly affected by the terms of this instrument."

Plaintiff seeks to set aside a release allegedly signed by its treasurer asserting that said treasurer had no authority to sign the same, and to force defendants to account in this court. Said release provides as follows:

"Receipt is hereby acknowledged of the foregoing dividends paid to me/us and in consideration thereof I/we herewith surrender this certificate and release and discharge Joseph A. Schmid, John H. McCulley and Joseph R. Powell, Horace J. Norcross and Charles E. Young, Sr. or any of them, as trustees under the Trust Agreement dated February 15, 1934 between The Clementon National Bank of Clementon, N.J. and said Trustees from all claims and demands which I/we had or could have against them or any of them as said trustees, or individually, for any act performed by them or any of them in connection with said trust.

Date

(Sign here) H. Newell Parker, Treas.

Depositor or Payee"


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.