Farmers State Bank - Havelock, ND

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 1, 1920*
Location: Havelock, North Dakota (46.475, -102.744)

Metadata

Model: gpt-5-mini
Short Digest: c74398fc

Response Measures

None

Description

Article (Bismarck Tribune, 1923-06-07) describes Farmers State Bank of Havelock as one of the first banks declared insolvent/closed when the wave of closings began about three years earlier (around 1920). The piece discusses a 1923 suit by a depositor against the Guaranty Fund Commission to reimburse depositors of that closed bank. No run is mentioned; the bank is described as closed/insolvent.

Events (1)

1. January 1, 1920* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank was declared insolvent/closed around 1920 as part of a series of bank failures; depositors are suing the Guaranty Fund for reimbursement.
Newspaper Excerpt: Similar suit has been instituted by Peter Lux in behalf of himself and other depositors of the Farmers State Bank of Havelock.... the Farmers State Bank of Havelock were the first banks to be declared insolvent of the closings which began about three years ago
Source: newspapers

Newspaper Articles (1)

1. June 7, 1923 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, June 7, 1923

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Article Text

ASK GUARANTY FUND PAY OFF DEPOSITORS Suit Begun to Force Payment To Depositors in First Closed Bank TO TEST THE LAW Will Determine if Depositors Must Be Paid in Order of Bank Closings Dickinson, N. D., June T.-Suit to determine whether or not the Guaranty Fund Commission must reimburse depositors of closed banks ill the order of the banks' closing, and when, has been instituted in the Sixth district court by A. J. Wirtz in behalf of himself and other depositors of the closed Security State Bank of New England. Similar suit has been instituted by Peter Lux in behalf of himself and other depositors of the Farmers State Bank of Havelock. The Guaranty Fund Commission, it is understood, has taken the position that with numerous banks closed the commission is not obligated to pay the depositors of the first closed bank first. but that an equal liability is created. Wirtz states that when the Security State Bank of New England closed Nov. 17, 1920 he had on deposit $8,059.00, that the total of unsecured deposits is about $200,000 and that the Guaranty Fund Commission has about $400,000 in its fund at present. The Security State Bank of England, since a Tolley bank has reopened, and the Farmers State Bank of Havelock were the first banks to be declared inolvent of the closings which began about three years ago, the petition says. It holds the depositors are entitled to receive their deposits in full out of the commission funds. The court is asked to: 1. Order the Guaranty Fund Com. mission to pay the receiver of the Security State Bank of New England sufficient money to pay the claims in full. 2. That in event there is not sufficient money to pay all unsecured deposits to issue certificates of indebtedness against the Guaranty fund in payment in full. 3. Decide that unsecured depositors of the Security State Bank of New England are prior and superior to the unsecured deposits of all other banks becoming insolvent subsequent to the insolvency of the Security State. The petition in the suit instituted by Peter Lux is identical. Attorneys for plaintiffs are Crawford and Burnett of Dickinson and Chas. J. Simon and H. J. Miller, New England.