12356. First State Bank (Jud, ND)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 6, 1924
Location
Jud, North Dakota (46.526, -98.896)

Metadata

Model
gpt-5-mini
Short Digest
dbf8ed3a

Response Measures

None

Description

Articles describe the First State Bank of Jud as a closed/insolvent bank under a receiver (L. R. Baird) with dividends being paid to depositors and the state pursuing liquidation; no run is mentioned. Supreme Court case (1925) discusses statutory authority to liquidate insolvent state banks. Classified as a suspension/closure with receivership (government-ordered liquidation).

Events (3)
1. June 6, 1924 Receivership
Newspaper Excerpt
will be continued during the summer months. Mr. Baird said today that dividends will be paid...by L. R. Baird, general receiver, will be continued during the summer months. ...ten to 15 percent in the case of the First State Bank of Jud, to the Guaranty Fund Commission, which had reimbursed depositors, and the non-secured creditors, as soon as proofs of claims are in.
Source
newspapers
2. June 6, 1924 Suspension
Cause
Government Action
Cause Details
Bank was closed and placed in receivership; state-appointed receiver administering liquidation and paying dividends to creditors
Newspaper Excerpt
Payment of dividends to depositors from funds of closed banks...and ten to 15 percent in the case of the First State Bank of Jud, to the Guaranty Fund Commission, which had reimbursed depositors
Source
newspapers
3. January 16, 1925 Other
Newspaper Excerpt
The State of North Dakota ... on behalf of all creditors of defendant banks ... vs. First State Bank of Jud ... Opinion of the court by Christianson, J. ... it is held that Chapter 137, Laws 1923 is constitutional; ... authorize the Attorney General ... to bring an action in the name of the state for the liquidation of such bank, or banks; vest the district court ... and appoint a receiver. Affirmed.
Source
newspapers

Newspaper Articles (2)
1. June 6, 1924 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, June 6, 1924

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Article Text

CLOSED BANK DIVIDENDS TO BE PAID SOON Expiration of Time For Notice of Payment to Bring Action by Receiver Payment of dividends to depositors from funds of closed banks, the first of which was made sometime ago in the case of a Leith bank by L. R. Baird, general receiver, will be continued during the summer months. Mr. Baird said today that dividends will be paid in the Farmers State Bank of Marmarth of five percent and ten to 15 percent in the case of the First State Bank of Jud, to the Guaranty Fund Commission, which had reimbursed depositors, and the non-secured creditors, as soon as proofs of claims are in. Dividends will be made in five other banks as soon as the expiration time of the notice given to creditors to file claims is reached, it being required under court order that four months notice be given to creditors to present claims.

2. January 16, 1925 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, January 16, 1925

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Article Text

SUPREME COURT From Burleigh County The State of North Dakota for itself and on behalf of all creditors of defendant banks, Plaintiff and Respondent, vs. First State Bank of Jud, Mohall State Bank and numerous other insolvent banking corporation, Defendants and Appellants. SYLLABUS: 1. Under the Constitution of this State all governmental power is vested in the legislature except such as is granted to the other departments of government, or expressly withheld from the legislature by constitutional restrictions. 2. The only test of the validity of an act regularly passed by the legislature is whether it violates any of the express or implied restrictions of the state or federal constitutions. 3. If the end be legitimate, all the means which are appropriate which are plainly adapted to that end. and which are not prohibited, may constitutionally be employed to carry it into effect. 4. A litigant can be heard to question the validity of a statute only when, and in so far as, it is applied to his disadvantage. 5. For reasons stated in the opinion it is held that Chapter 137, Laws 1923 is constitutional; that the legislature in the exercise of its constitutional powers as the lawmaking body of the state may prescribe the conditions under which a banking corporation organized under the laws of this state shall be deemed insolvent; authorize the Attorney General of the State to bring an action in the name of the state for the liquidation of such bank, or banks; vest the district court of Burleigh county with jurisdiction of such action, and require the supreme court, in the exercise of its supervisory jurisdiction over inferior courts, to designate a district judge to hear and determine such actions and appoint a receiver. Appeal from the district court of Burleigh County, Cooley, Special J. Defendant appeals from an order sustaining M demurrer to his answer. Affirmed. Opinion of the court by Christianson, J. Francis J. Murphy, of Fargo, At. torney for Appellants. Geo. F. Shafer, Attorney General and John Thorpe, Assistant Attorney General, Attorneys for Respondent.