In Re Bank of San Pedro

11 Cal.2d 313 (1938) In the Matter of the BANK OF SAN PEDRO (a Banking Corporation), in Liquidation. FRIEND W. RICHARDSON, as Superintendent of Banks, etc., Appellant,

v.

ROY P. HARPER, Respondent.

L. A. No. 15775. Supreme Court of California. In Bank.

May 25, 1938. Clock, McWhinney & Clock, Merritt D. Jergens and John G. Clock for Appellant.

Sullivan, Roche & Johnson, as Amici Curiae, on Behalf of Appellant.

Loucks & Phister for Respondent.

THE COURT.

For the reason that with respect to the issue herein involved, in similar situations, a diversity of opinion appeared as between or among several respective jurisdictions, a hearing of the appeal in the instant case was ordered to be had in this court, after decision of the original appeal by the District Court of Appeal. After careful consideration of the facts of the case and the law applicable thereto, this court is satisfied with, and hereby adopts as its own, the opinion and decision that was prepared by Mr. Justice Sturtevant of the Second Division of the District Court of Appeal, First District. It is as follows:

"This is an appeal from an order authorizing and directing Friend W. Richardson, as superintendent of banks, to allow a set-off and to accept payment of the balance due and owing on a promissory note held by an insolvent bank now being liquidated by said superintendent."

"The order was made and based on an agreed statement of facts. Heretofore the Bank of San Pedro was organized to conduct and was conducting a banking business consisting of a commercial department, and a savings department under the Bank Act. (Act No. 652, Deering's General Laws.) The petitioner, Roy P. Harper, borrowed from the commercial department several thousand dollars on a collateral note secured by certificates of shares of prior preferred stock of the Van Camp Sea Food Company. About the same time he opened a savings account in the savings department of said bank. Large sums having been paid on the note, later a new [315]