Article Text
UPSTATE BANK SHUT South Glens Falls, N. Y., May 23 (P).-The First National Bank closed its doors today.
16963. First National Bank (South Glens Falls, NY)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- national
- Bank ID
- 5851
- Charter Number
- 5851
- Start Date
- May 23, 1932
- Location
- South Glens Falls, New York (43.299, -73.635)
Metadata
- Model
- gpt-5-mini
- Short Digest
416810b5
Response Measures
None
Receivership Details
- Depositor recovery rate
- 84.9%
- Date receivership started
- 1932-05-24
- Date receivership terminated
- 1937-02-11
- Share of assets assessed as good
- 27.4%
- Share of assets assessed as doubtful
- 58.9%
- Share of assets assessed as worthless
- 13.6%
Description
The First National Bank of South Glens Falls was closed by the Comptroller of the Currency on May 23, 1932 for insolvency; a receiver (Frank M. Maryott) was appointed. No article mentions a depositor run prior to closure, so this is classified as a suspension (government action) leading to permanent closure/receivership.
Events (4)
1.
June 6, 1901
Chartered
- Source
- historical_nic
2.
May 23, 1932
Receivership
- Newspaper Excerpt
- The bank was closed by the comptroller of the currency on account of insolvency on May 23, 1932, and Maryott was appointed receiver.
- Source
- newspapers
3.
May 23, 1932
Suspension
- Cause
- Government Action
- Cause Details
- Closed by the Comptroller of the Currency on account of insolvency (May 23, 1932).
- Newspaper Excerpt
- The First National Bank closed its doors today.
- Source
- newspapers
4.
May 24, 1932
Receivership
- Source
- historical_nic
Newspaper Articles (4)
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Article Text
UPSTATE BANK SHUT South Glens Falls, N. Y., May 23 (P).-The First National Bank closed its doors today.
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Article Text
UPSTATE BANK SHUT South Glens Falls, N. Y., May 23 (P).-The First National Bank closed its doors today.
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Article Text
Judge Cooper Sustains Claim of Town of Moreau gainst Bank ASSIGNMENT OF BONDS HELD TO BE SECURITY FOR $16,000 DEPOSIT Receiver of Defunct First National Bank of South Glens Falls Said to Take Title Subject to Rights of Town DISTRICT COURT DECISION GIVEN The claim of the town of Moreau, Saratoga county, against the defunct First National bank of South Glens Falls and Frank M. Maryott, receiver, for $16,075.58 deposited by the town in that bank, is sustained in a decision handed down yesterday by Frank Cooper, judge of the United States district court. The decision directs judgment in favor of the town. Judge Cooper wrote 14-page opinion accompanying his decision. John W. Nichols and William E. Bennett represented the town and Brackett and Eddy, the bank and receiver On January 27, 1932, the late Austin L. Reynolds, then supervisor of the town of Moreau, had about $21,000 of highway monies of the town in his possession, which he wanted to deposit in the South Glens Falls bank He required, however, that to protect the town the bank should secure the deposit, and the bank, wishing to accept the deposit, gave security by an assignment of bonds of corporations which the bank owned. The assignment was evidenced by writ. ten paper signed and executed on that day and which stated that the purpose of the was to at all times adequately secure the deposit and that the bonds were to stand as collateral security and so remain during the term of the deposit. The deposit was made on the same day that the agreement was made. Bonds Not Delivered The bonds were not delivered, however, to the supervisor, but were allowed to remain in the custody of the bank. Selleck J. Varney, president of the bank, after execution of the agreement assigning the bonds, put rubber band about them and they were placed in safety deposit box which the bank had in the Glens Falls National bank, in which it kept certain of its securities. The bonds stayed there with the band around them and were found by the receiver on his appointment. One of the conditions of the agreement assigning the bonds was that the bank should have the right to withdraw any of them at any time should the deposit decrease, and that it should have the right to substitute from time to time other bonds in place of those assigned, if the market value of the substituted bonds should equal or exceed the ones withdrawn. The agreement also stated that the purpose was at all times adequately to secure the deposit, but in no manner to restrict the bank in the use of the bonds pledged. so long as sufficient collateral remained to cover the deposit. The bank was closed by the comptroller of the currency on account of insolvency on May 23, 1932, and Maryctt was appointed received When the bank closed there was on deposit with it, of town funds, $16,745.48 which was later reduced by an offset of $669.90 due from the town to the bank, leaving balance of $16,075.58 when the suit was brought. Receiver Co-defendant The receiver refused to recognize the validity of the assignment or that the town had security by reason of the assignment, and claimed that the security which the assignment purported to give was void because the bonds were allowed to remain in the custody Counsel for the town claimed that the delivery was not necessary and that the town acquired good and valid lien on the bonds and had security for the deposit by reason of the assignment of the bonds, and by the agreement made when the deposit was taken. The receiver also refused to recognize that the claim of the town was preferred. The town brought suit against the bank and the receiver. The case was submitted to Judge Cooper on February 4, and Judge Cooper has now handed down the decision supporting the town in its claim. The case is an interesting one, legal authorities say, as it involves the validity of an agreement assigning the bonds as security, when the bonds were allowed to remain in custody of the bank. The case also involved the rights the receiver and his the Judge Cooper held that there being no fraud and no subsequent purchaser, pledgees, mortgagees in good faith, and no execution attachment creditors, that the assignment of the bonds was valid as the receiver and that he took title subject to the rights of the town acquired by the agreement assigning the bonds as security for the deposit at the time the deposit was made.