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LAW INTELLIGENCE. CONDITIONS UPON WHICH STOCKHOLDERS ARE LIABLE FOR THE DEBTS or 4 BANK. We lay before our readers the following importabt decision of Judge Manierre, delivered Dec. 13:h. In the Circuit Court-In Chancery-Before Judge Masierre. John Denniston If. James II. Woodworth and others. Stockholders of the Merchands' and Mechanics' Bank of Chicago. The bill of complaint alleges that the Merchants' and Mechanics' Bank of thicago was organized under the provisions of the general banking law of this State in 1551. That an account was opened by the M. & M. Bank with the Sandy River Bank of Maine, and that the complianant together with several others made their bond of indemnity to the Sundy River Bank to make good any balance that might become due to it from the M. $ M. Bank previous 10 Nov. 28. 1854. A Jadgment was afterwards recovered against these obligors for upwards of $3,000. by the Saudy River Bank, being the balance found due from the M. & M. Bank, which judgment was subsequently paid by the obligors. The bill further alleges that the M. & M. Bank is insolvent: that all its assets have been applied in liquidation of its other Indebtedneed; and that the defendants were stockholders In that Bank and liable to the extent of their stock for the payment of its debts. A demarrer was interposed to the bill by defendants, and the cause was argued some time -ince, and taken under advisement. The following is the substance of the opinion deliverd by Judge Manierre: Our statute, adopting the words of the State Constitution, declares that the stockholders of all corporations organized under the General Banking Law for the issuing of bills to circulate as money, shall be responsible to the amount of their stock for all the debts of the corporation, of every de"cription. The stockholder, however, is not made liable for such debts, by the provisions of the visiute, in the first instance. Before that liability be comes fixed so that a creditor may proceed against the private property of a stockholder, the corporstion must have been pat in liquidation by the appointment of a Receiver. and its entire assets applied in the payment of Its indebtedness. [190] And when the assets shall have been exhausted and there shall remain any unpaid debts, the perFOR holding the same shall have remedy against the stockholders for the amount due. by the institution of a enit against the corporation. and if jud :ment shall be recovered against it, then as isaue shall be made for the purpose of ascertaining the extent of the liability of each stockholder, and a judgment shall be entered abgainst him for the amount. 1933.1. These proceedings against the stockbolder are all contingent upon the failure of the bank to pay any of its bills upon demand, and upon that alone, No bank can be put in liquida-