Valley Deposit & Trust Company (Belle Vernon, PA)

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BANKS ARE CLOSED

HARRISBURG, Pa., Oct. 23 The State Department of Banking today announced the closing of the Valley Deposit and Trust Company, Belle Vernon, and the McKean County Trust Company, Bradford. No figures as to the amounts involved were made public by the department

WILLIAMSVILLE, Y., Oct 23 open for business today Buffalo banks sent $500,000 to the Bank of Williamaville. the other financial institution here. to safeguard It after the Amherst Bank closed. There was no run on the no excitement among depositors here.

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Belle Vernon Closed Bank To Pay Dividend

First dividend payment by the Valley Deposit and Trust company bank of Belle Vernon was indicated Friday with the filing of the first and partial accounting of the bank by Receiver Arthur McCune. It was indicated that about per cent would be available to 6,000 depositors. The bank was closed October 1931.

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DISTRICT BASES PLEA ON

Belle Vernon Directors Raise Question With Respect to Board as Preferred Depositor

DECISION FAR REACHING

Exceptions to the first and partial account of the Valley Deposit and Trust Company of Belle Vernon have been filed by the school district of Belle Vernon, raising one of the most unusual questions yet presented before the Fayette County courts and one which concerns practically every school district the county. The exceptions, as presented by Matthews Lewellyn, counfor the river school district assert that the receiver and the state secretary banking failed to make the district which had on deposit in the bank at the time of Its closure, preferred creditor and that now seeks to distribute the assets of the bank the school district at same pro rata the remainder of the creditors. common This cannot be done under the old Common as established by the King's Crown, back in the days of England, and under which the Commonwealth of Pennsylvania now operates together with the statutory laws of the state. school district is a part of an branch of the sovereignty the of Pennsylvania, vested with all of its rights and prerogatives," the exceptants point out. Under the old common law the funds_ of the state and all of its various branches "are preferred Henors and its funds must be protected R8 against all other funds, asserted. The school fund must be paid in full before any can be made to the depositors, 18 specifled. In addition to that It set forth that school district had borrowed note at the time of the closure the sum of $13,109 which the bank authorities hypothecated along with other valuable stocks and bonds and placed with the First National Bank of Pittsburgh to secure loan which Pittsburgh institution made. Al the best this can only regarded to the bank deposit, since such certificates not negotiable could not be transferred to the Pittsburgh bank without legal authorclaimed. The exceptants also claim that the (Continued on Page Thirteen)

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BANK RECEIVER TO TAKE BONDS, COURT'S RULING

Mortgages May Be Exchanged By Belle Vernon Trust Co. For Home Loan Bonds

Judge D. W. Henderson today approved an application of Receiver Arthur McCune of the Valley Deposit and Trust company. of Belle Vernon, to accept bonds of the Home Owners Loan Corporation in exchange for mortgages held on a dozen or more properties. thus reverting the homes back to their original owners The more is the first to have been made by defunct banks of the county since the Home Owners Loan act was passed by Congress in October and should the practice become general it would mean the reversion of hundreds of properties from the banks asset lists back to owners. The petition was presented by Attorney H. George May. counsel for the receiver. and came at the instance of State Secretary of Banking William D Gordon, who indicated that he wished to co-operate in every way with the federal government to help in the program of business recovery which, "if effective will benefit all closed institutions." Mortgagors in each instance, and there were twelve listed in the petition, had made application for aid from the Home Owners Loan Corporation. With formal court approval of the bank receiver's petition. each of these twelve applicants will receive back their properties in exchange for the corporation's bonds. Attorney May explained that in each instance the mortgages were those owned outright by the bank.