Cliffside Park National Bank (Cliffside Park, NJ)

Article Text

NAME TRIO AS TRUSTEES

Rouan, Leuders, Jacoby To Liquidate Park National Assets

Councilman James Rouan, August Leuders Cashier Jacoby named trustees to liquidate the included the the Cliffside Park National Bank meeting last conservator These on vote of the up the time the assets turned over which the date that United Na. tional Bank Cliffside Park opens for business. This bank the of acceptable assets and depositors in that amount deposits. After that the trustees are subject the the Court Chancery may changed by formal depositor group that court. headed Engineer Roscoe McClave, submit tentative list directors for the bank National Examiner Roberts today. list subject to his approval examination the Currency. The own stock the and officers of any of the closed banks.

Article Text

Charges Cliffside Park Bank Trustees Violate Agreement

Charging the liquidating trustees of the defunct Cliffside Park National Bank have violated their trust agreement and are liquidating assets in their hands without regard to the rights of creditors, Louis Korb, of Cliffside Park, a creditor and depositor of the bank, has filed a petition in Chancery Court asking for the appointment of new trustees. Vice-Chancellor Charles M. Egan will hear argument on the matter on June 17.

The Cliffside Park National Bank suspended business on March 9, 1933 during the banking holiday and subsequently under a depositors and creditors agreement James J. Rouan, August H. Lueders and Fred W. Jacoby were appointed trustees in liquidation. It was also agreed that a new bank should be organized with all the liquid assets of the old bank, and the non-liquid and depreciated assets were to be held by the liquidating trustees for the benefit of all creditors bound by the agreement and these assets were to be held in trust and distributed pro rata as they were liquidated. Trustees were to serve without charge except reimbursement for reasonable expenses.

It was also provided that the new bank, known as the United National Bank, should have the right within six months after its opening to substitute loans and discounts bought

Article Text

Charges Cliffside Park Bank Trustees Violate Agreement

Charging the liquidating trustees of the defunct Cliffside Park National Bank have violated their trust agreement and are liquidating assets in their hands without regard to the rights of creditors, Louis Korb, of Cliffside Park, a creditor and depositor of the bank, has filed a petition in Chancery Court asking for the appointment of new trustees. Vice-Chancellor Charles M. Egan will hear argument on the matter on June 17.

The Cliffside Park National Bank suspended business on March 9, 1933 during the banking holiday and subsequently under a depositors and creditors agreement James J. Rouan, August H. Lueders and Fred W. Jacoby were appointed trustees in liquidation. It was also agreed that a new bank should be organized with all the liquid assets of the old bank, and the non-liquid and depreciated assets were to be held by the liquidating trustees for the benefit of all creditors bound by the agreement and these assets were to be held in trust and distributed pro rata as they were liquidated. Trustees were to serve without charge except reimbursement for reasonable expenses.

It was also provided that the new bank, known as the United National Bank, should have the right within six months after its opening to substitute loans and discounts bought

Article Text

RAPS LIQUIDATION

(Special to the Bergen Evening Record)

Jersey City, June 6 — Charging that the liquidating trustees of the defunct Cliffside Park National Bank have violated their trust agreement and are liquidating assets in their hands without regard to the rights of creditors, Louis Korb of Cliffside Park, a creditor and depositor of the bank, has filed a petition in Chancery Court asking for the appointment of new trustees. Vice-Chancellor Charles M. Egan will hear argument on the matter on June 17.

The Cliffside Park National Bank suspended business March 9, 1933, during the banking holiday and subsequently under a depositors and creditors agreement James J. Rouan, August H. Lueders and Fred W. Jacoby were appointed trustees in liquidation. It was also agreed that a new bank should be organized with all the liquid assets of the old bank, and the non-liquid and depreciated assets were to be held by the liquidating trustees for the benefit of all creditors bound by the agreement and these assets were to be held in trust and distributed pro rata as they were liquidated. Trustees were to serve without charge except reimbursement for reasonable expenses.

It was also provided that the new bank, known as the United National Bank should have the right within six months after its opening to substitute loans and discounts bought for any assets in the hands of the trustees on a dollar for dollar basis. The new bank agreed to pay creditors the difference between the amount due from the old bank and the amount they waived in signing the agreements.

On Nov. 23, 1934, it is charged, the day before the expiration of the six months within which the assets could be substituted, the new bank demanded an exchange of assets aggregating $95,928.78. Instead of substituting assets for assets as provided in the agreement, the complainant charges the trustees sold Home Owners Loan Corporation bonds and Class B Foreign Bonds at reduced rates and then borrowed an additional $20,000 from the new bank to pay the new bank in cash for the substituted assets. To secure the $20,000 loan, it is said, the trustees pledged the $95,928.78 in substituted assets.

Besides this irregularity, it is further charged, Jacoby resigned as a liquidating trustee and accepted the position of liquidating agent at a large salary and with an assistant. It is contended that Jacoby is doing the work which the trustees agreed to do without charge.

The complainant asks an accounting of the assets in the hands of the trustees as well as of any losses incurred.

Counselor James A. Breslin appears as solicitor for Korb.

Article Text

KORB ASKS NEW BANK TRUSTEES

Holds Present Body Violated Cliffside Pact

(Special to the Bergen Evening Record) Jersey City, June 6 — Charging that the liquidating trustees of the defunct Cliffside Park National Bank have violated their trust agreement and are liquidating assets in their hands without regard to the rights of creditors, Louis Korb of Cliffside Park, a creditor and depositor of the bank, has filed a petition in Chancery Court asking for the appointment of new trustees. Vice-Chancellor Charles M. Egan will hear argument on the matter on June 17.

The Cliffside Park National Bank suspended business March 9, 1933, during the banking holiday and subsequently under a depositors and creditors agreement James J. Rouan, August H. Lueders and Fred W. Jacoby were appointed trustees in liquidation. It was also agreed that a new bank should be organized with all the liquid assets of the old bank, and the non-liquid and depreciated assets were to be held by the liquidating trustees for the benefit of all creditors bound by the agreement and these assets were to be held in trust and distributed pro rata as they were liquidated. Trustees were to serve without charge except reimbursement for reasonable expenses.

It was also provided that the new bank, known as the United National Bank should have the right within six months after its opening to substitute loans and discounts bought for any assets in the hands of the trustees on a dollar for dollar basis. The new bank agreed to pay creditors the difference between the amount due from the old bank and the amount they waived in signing the agreements.

On Nov. 23, 1934, it is charged, the day before the expiration of the six months within which the assets could be substituted, the new bank demanded an exchange of assets aggregating $95,928.78. Instead of substituting assets for assets as provided in the agreement, the complainant charges the trustees sold Home Owners Loan Corporation bonds and Class B Foreign Bonds at reduced rates and then borrowed an additional $20,000 from the new bank to pay the new bank in cash for the substituted assets. To secure the $20,000 loan, it is said, the trustees pledged the $95,928.78 in substituted assets.

Besides this irregularity, it is further charged, Jacoby resigned as a liquidating trustee and accepted the position of liquidating agent at a large salary and with an assistant. It is contended that Jacoby is doing the work which the trustees agreed to do without charge.

The complainant asks an accounting of the assets in the hands of the trustees as well as of any losses incurred.

Counselor James A. Breslin appears as solicitor for Korb.