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Writ Halts Payment Of Bank's Dividend $35,000 Liquidation Disbursement to Jeffersontown Depositors Held Up. CHECKS WERE MAILED Agent Acts As Order Entered, Then Time is Allowed for Appeal. A temporary injunction was issued by Judge Churchill Humphrey Monday restraining the Lincoln Bank & Trust Company from honoring dividend checks totaling $35,000, which were mailed by A. B. Wigginton, liquidating agent for the Jefferson County Bank, Jeffersontown, Saturday. The Lincoln Bank is a depository for the Jeffersontown bank. The checks, representing a 10 per cent payment to depositors of the closed Jeffersontown bank, were dated in April but had been withheld from depositors because of litigation instituted by a committee which is attempting to have the bank reorganized instead of liquidated. In a judgment handed down Saturday morning, Judge Humphrey ruled that the bank should be liquidated, so the checks were mailed immediately. But attorneys for the reorganization committee later obtained an order maintaining the status quo twenty days to allow time for appealing to the Court of Appeals. The injunction against the depository was not granted until after a deputy sheriff failed in two attempts to serve the status quo order on the liquidating agent. As some of the checks mailed Saturday were cashed Monday by merchants and other persons, some recipients faced the prospect of having their checks returned. Others will be compelled to hold checks pending a final decision by the appellate court. The case has been in court since shortly after the bank was closed three years ago. Three previous dividends—5 per cent each—have already been paid to depositors. The reorganization committee is represented by Huston Quin and J. Blakey Helm. Wallace A. McKay is attorney for the liquidating agent, and Robert Hagan is counsel for intervening petitioners who have sided with the liquidating agent.