6009. Lakeville State Bank (Lakeville, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
March 31, 1932
Location
Lakeville, Indiana (41.524, -86.273)

Metadata

Model
gpt-5-mini
Short Digest
4f3bfe5a

Response Measures

None

Description

The Lakeville State Bank is described throughout as a defunct/closed institution with a receiver (Citizens Trust & Savings Bank, receiver). Articles discuss receivership, distributions of a 10% dividend and legal disputes over priority of public funds. There is no mention of a depositor run; the bank is in liquidation under a receiver, so this is classified as a suspension leading to closure/receivership.

Events (3)
1. March 31, 1932 Receivership
Newspaper Excerpt
Citizens Trust & Savings bank of South Bend, receiver for the Lakeville bank, to investigate further the $1 951.37 debt on its books credited against the North Liberty bank.
Source
newspapers
2. June 29, 1932 Other
Newspaper Excerpt
Judge Pyle's decision today was made ... authorized $5,000 for depositors ... distribution, which will be made within the next few days ... about 400 depositors will receive checks in the distribution.
Source
newspapers
3. * Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank had failed/closed and entered liquidation; receiver appointed and assets being liquidated to pay depositors.
Newspaper Excerpt
defunct Lakeville State bank ... the Citizens' Trust Savings bank, receiver for the Lakeville State bank, is in a position to make a 10 per cent distribution on all deposits
Source
newspapers

Newspaper Articles (7)
1. March 31, 1932 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, March 31, 1932

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Article Text

PYLE ADJOURNS BANK DEBT SUIT After hearing considerable testimony Wednesday, which failed to clear up the mystery of mutual debts between the Lakeville State bank and the North Liberty State bank, Circuit Judge Dan Pyle adjourned the hearing to allow the Citizens Trust & Savings bank of South Bend, receiver for the Lakeville bank, to investigate further the $1 951.37 debt on its books credited against the North Liberty bank. When suit was filed by the receiver for the Lakeville bank against John G. Schurz, receiver for the North Liberty bank. Mr. Schurz filed a cross-complaint against the Lakeville bank receiver for $380.56, which he found owing the North Liberty bank by the Lakeville bank.

2. April 1, 1932 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, April 1, 1932

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Article Text

ARGUE PRIORITY OF CLAIMS Three Closed Institutions in County are Now Awaiting Ruling. A third St. Joseph county bank was added to the list of closed banks which are awaiting an important decision by the Indiana supreme court before paying dividends to depositors whose funds have been tied up in the institutions for several months. The petition by the Citizens Trust Savings bank, receiver for the Lakeville State bank. for permission to make blanket distribution of 10 cent, was blocked by objection by Union township and the town of Lakeville, whose total municipal funds make up two-fifths of the entire amount of deposits in the bank. Attorney Roland Obenchain, representing the and town, told Circuit Judge Dan Pyle that while the need their funds as well as the individual depositors, It was their decision await the supreme court's ruling concerning the priority of claims against closed He stated that the municipal funds in the bank total about $20.000 and that the entire deposits tal about $50,000. There is more than $5,000 ready for distribution by the receiver, which would release approximately $2,000 to the LWO government units and $3,000 would divided among the several hundred Due to this state of affairs and additional moving factor in the depreciation of the bank's assets, Mr. said, the municipalities are forced to oppose the pres. ent distribution and await the highor court's ruling. Receivers for the Franklin Trust company of South Bend and the North Liberty State bank signified some time ago that they are ready to make distributions of considerable amounts when the supreme court rules, Miss Ethel Weaver, receiver for the Franklin bank. stated that blanket distribution of 10 per could be made once should the supreme court that public funds do not hold priority over individual depositors. Should the municipal funds be given priority, Miss Weaver said. 20 per cent may be paid. St. Joseph county has about $44.000 tied up in the Franklin bank, while several townships also have smaller amounts in the closed bank. John G. Schurs, receiver for the North Liberty bank, said some time ago that sizeable distribution is ready to be made to depositors. but the Liberty township funds held in the bank make necessary await the supreme court's ruling. The matter has been before the high court for more than year and despite the fact that many receivers for closed banks throughout the state are awaiting ruling before releasing funds, the court justices have failed to make a decision.

3. June 13, 1932 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, June 13, 1932

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Article Text

DELAY IN COURT TO TIE UP FUNDS Lakeville Bank Receiver Ready to Distribute 10 Per Cent. Distribution of funds from another closed bank in St. Joseph county probably will be blocked because of the delay on the part of the Indiana supreme court to rule on the question as to whether public funds are to be considered prefe: ed claims. The Citizens Trust & Savings bank, receiver for the Lakeville State bank, is in a position to make a 10 per cent distribution on all deposits, it was revealed in intervening petitions filed in court today by Trustee Delbert Neddo of Union township and officials of the town of The petitions ask that the court restrain the receiver from making any distribution of funds until the court is set and that both the township and town judgments received recently in circuit court, be paid in full before any other general claims. It was explained that the order was necessary to place the governmental units in a secured position pending the supreme court's action. The bank receiver has on hand approximately $5,000 to distribute to the depositors, who had $50,000, in the institution when closed. The supreme court has been in possession of ppeals from other sections of the state on this question of priority. it was explained today, and fails to render an immediate decision. Many banks throughout the state are affected by the delay, while three banks in St. Joseph county are withholding ready Hearing on the petitions will be held- Saturday at 11:30.

4. June 26, 1932 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, June 26, 1932

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Article Text

STATE COURT'S DELAY IN BANK RULING SCORED "Pathetic," Says One Receiver; "Dilatory" Second Charges. AFFECTED Public Funds Held Up; Also Prevents Distribution of $20,000 in County. More than $20,000 is lying dormant in St. Joseph county bank vaults awaiting decision by the Indiana supreme court that will provide for the distribution of the money by receivers for three defunct banks in the county. The same decision will directly effect nearly $1,000,000 in public funds tied up in three other closed South Bend which are now in the liquidation. Definite action by the higher court has been for nearly since the test case was transferred to that court from the Indiana court, where on file nearly two years before justices of that court disagreed decision. Since the Cound its way to the supreme court, several similar appeals have been taken from every section of the state. estimated that throughout the state effected by court's delay in handing down ruling. Calls Delay Attorney Orie Parker, who represents Miss Ethel receivfor the Franklin Trust company, declared: pathetic the way the court delays action on an important issue of that kind.' Schurz, receiver for the North Liberty State bank said: supreme court has the reputation being dilatory. or years making decision and, from past experiences, another five years before the ruling is made. The Franklin company has about $8,000 for the question the priority claims on public funds blocks the payment the money to depositThis question must be setin the higher Mr. Schurz said today that he could distribute about $8,000 if the priority claim dispute was The blocking the payment $5,000 ready the hands of Citizens' Trust Savings bank. receiver for Lakeville State bank Three Banks Affected. Three other large South Bend closed and in the process liquidation, are also hampered by the dispute to priority. They are Union Trust company half million dollars being held in public funds. The bank about $100,000 public funds tied up, of which $85,000 belongs to Bend school Over $100,000 school funds being held the American Trust comSeveral townships also have pany. funds in the closed South Bend banks. was pointed out that suits against surety bond signers coverthe money these banks have ing but determination been priority claims would exonerate the bond signers in event the public funds are given priority. Only recently the Union ship the town of this county, awarded in superior court No. against bond covering in Lakeville State the amounting to bank, $20,000. Will Be Appealed. This decision to be appealed the supreme court Attorney Walter Arnold, was said Saturday. petition by the receiver of the following the judgment, distribute blocked by town and until the higher court rules on the claims. The Washington State bank has one payment of 10 per but time that sufficient addithe tional funds were available to meet claims in the event the priority court ruled their favor. higher Continued Page Six. Column

5. June 29, 1932 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, June 29, 1932

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AUTHORIZES $5,000 FOR DEPOSITORS Continued from Page One, Column Five. closed banks in St. Joseph county for many the supreme court's delay in making the ruling. Judge Pyle said. in making the decision, that he certain the supreme court could rule no other way than public funds are common deposits. or municipal depositors are common depositors Obenchain Backs Move. Roland Obenchain. attorney for Union township and the town of Lakeville. said that it was generally felt the higher court's ruling would be in harmony with that of Judge Pyle and added that if were not adjustments would be later to conform with the decision of the supreme court. Judge Pyle's decision today was made the protest of Township Trustee Delbert Neddo and officials of the town of Lakeville, who had total public fund deposits in the bank of $20,000. Their 00jection was technical and matter of form to keep the court records clear pending the supreme court's ruling. Both governmental units today agreed to the distribution and approved stipulation that in the event the higher court finds public funds are preferred claims, adjustments will be made later. Through the distribution. which will be made within the next few days. Union township will receive about $1,400 on deposits of $14,000 and the town of Lakeville will be given $600 on deposits of $6,000 These will be deducted from the judgments for the full amount of the deposits granted both units in suits against former officials and directors of the bank who signed personal bonds as surety for the funds. Superior Judge Elmer Peak made the ruling several days ago. 400 Will Get Funds. Lenn J. Oare, attorney, representing the bank's receiver, said today that about 400 depositors will receive checks in the distribution. There were about 500 depositors in the bank, of which 100, Mr. Oare said, had very small accounts. peculiar condition arose when Mr. Oare was asked who would pay the new tax on the checks to be issued to the depositors. He said it would probably be charged to the receivership. The tax will amount to about $8. Attorney Orie Parker. representing Miss Ethel Weaver, receiver for the Franklin Trust company, said today that the position of the funds ready for distribution in that institution is entirely different from that of the Lakeville bank and probably would not be effected by the ruling. He pointed out that the receivership has already made payment to public fund depositors, but can not make further distribution until fina. determination is made on the question of priority claims. The Franklin Trust company receiver has about $8,000 on hand awaiting distribution. It was felt, however, that similar sum being held by John G. Schurz, receiver for the North Liberty State bank, may ultimately be affected by the court's decision.

6. August 9, 1932 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, August 9, 1932

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Checks Held Bank by Depositors Half of the 10 per cent dividend checks ordered issued to depositors of the defunct Lakeville State bank on June 29 have not been called according to H. Rausch, president treasurer the Citizens Trust Savings bank receiver for the closed bank. The checks, however, do not represent half of the $5,500 distribution. Mr. said, the larger checks called for livered for the most part. The dit vidend payments are available for those depositors who call the bank. Circuit Judge Dan Pyle ordered payment of dividend despite legal question status public funds closed banks, which now before the state supreme court for the event higher public funds preferred claims, an agreement has been made whereby the Union township Lakeville town accounts be full. One Cent Checks Taxed. Union township obtained approximately the settlement. Lakeville about which represented 10 per cent the money in the accounts the time the bank closed. situation arose in making dividend payments. There were number checks made for cent, which the receiver was forced federal tax. Since the court ruled that the cost of would include about $3 will fall on the depositors. Many Were Forgotten. It was explained that in most cases where the checks were for but was cent, the accounts deposit balances cents. of these have Mr. said. were about 500 the bank prior closing, but 100 these very many being less than $1.

7. August 30, 1932 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, August 30, 1932

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85 PER OF DIVIDEND PAID About 85 of the out of per cent dividend checks positors of the defunct Lakeville Levan State bank has dividend two months ago, Rausch, presi- ing dent and the and Citizens' Trust Savings said today. The Citizens' is receiver cated. the closed bank and dividend on order of Circuit Judge ler, Dan Pyle despite legal question on the status public funds in ing closed banks, proposition morrow. awaiting action the state supreme After court. Dividends were paid Rogers, public deposits as on was vidual accounts, last Although the amount of money already paid out amounts 85 banditry, the dividend Joseph about cent the checks will been called Mr. Rausch posting This many checks small he Found explained. possession