20048. Cowpens Security Bank (Cowpens, SC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 1, 1931*
Location
Cowpens, South Carolina (35.017, -81.804)

Metadata

Model
gpt-5-mini
Short Digest
f25f967b

Response Measures

None

Description

Articles report Cowpens Security Bank was closed in April 1931 and a receiver (Claude R. Dunbar) was appointed; lawsuits allege many irregularities and insider loans. No mention of depositor runs; this appears to be a suspension/closure with receivership due to bank-specific problems.

Events (3)
1. April 1, 1931* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed amid allegations of 'repeated and constant violation of banking laws' and many irregular insider loans and excess credit to officers/directors.
Newspaper Excerpt
receiver of the Cowpens Security bank, which was closed April
Source
newspapers
2. June 12, 1931 Receivership
Newspaper Excerpt
permitting the withdrawal of petition for receiver for M Moseley, Cowpens merchant and former president of the Cowpens Security bank, now defunct. The petition was filed ... representing receivers of American State Bank of Gaffney ... subsequent to that decision Mr. Hall asked that he be permitted to withdraw the petition which request was granted in the order.
Source
newspapers
3. December 9, 1931 Receivership
Newspaper Excerpt
Claude R. Dunbar, receiver of the Cowpens Security bank, which was closed April today filed suit ... seeking $40,000 alleging neglect of duty by state examiner ... complaint points out ... examinations of the bank ... show repeated and constant violation of banking laws and statutes of this state.
Source
newspapers

Newspaper Articles (2)
1. June 12, 1931 The Greenville News Greenville, SC
Article from The Greenville News, June 12, 1931

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Article Text

Petition Withdrawn For Bank Receiver SPARTANBURG June Judge Ramage. sitting in Union. med an order which has been on file in office of clerk of court here. permitting the withdrawal of petition for receiver for M Moseley. Cowpens merchant and former president of the Cowpens Security bank. now defunct The petition was filed with the court by W. Hall. representing receivers of American State Bank of Gaffney and argued before Judge Ramage who refused the motion on the grounds that he found nothing for the receiver to take but the premises, which are under mortgage and the cost of the receivership would have to come out of the proceeds of the foreclosure. Subsequent to that decision. Mr. Hall asked that he be permitted to withdraw the petition which request was granted in the order.

2. December 9, 1931 The Greenville News Greenville, SC
Article from The Greenville News, December 9, 1931

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Article Text

Albert S. Fant Sued In Closing Of Cowpens Bank Receiver Seeks $40,000 leging Neglect Of Duty By State Examiner MANY IRREGULARITIES SPARTANBURG, Dec Claude R. Dunbar, receiver of the Cowpens Security bank, which was closed April today filed suit with the clerk of court here against Albert Fant, state bank examiner, and the Fidelity and Deposit company of Maryland for the sum of $40,000. The complaint filed by Harvey W. Johnson, attorney for the plaintiffs, points out that Fant through the Fidelity company for $15,000. pledging faithful performance of his duty. The bank was at The complaint alleges that the bank examiner "did himself caused to be made by his associates, examinations of the bank and that the report of said investigations show repeated and constant violation of banking laws and statutes this state." Twelve particulars were alleged They That President Brown was excess of the limit allowed by law and such loans credit never legally proved. ident and that he served as pres- apof the bank without giving bond required by law until up the close the said bank That President Brown's broth. Brown, was continuously excess limits prescribed by law and cured loans were invalidly That President Brown's Brown, was limits by law secured that such loans were not properly That loans to various including directors. in persons the legal limit were allowed (Continued on Page Col.