TICONIC BANK v. SPRAGUE

No. 374.

303 U.S. 406 (1938)

TICONIC NATIONAL BANK ET AL. v. SPRAGUE ET AL.

Supreme Court of United States.

Decided March 7, 1938.


Attorney(s) appearing for the Case

Mr. George P. Barse, with whom Messrs. F. Harold Dubord, Trevor V. Roberts, and James Louis Robertson were on the brief, for petitioners.

Mr. Harvey D. Eaton for respondents.

By leave of Court, Acting Solicitor General Bell, and Messrs. Russell L. Snodgrass and Frederick E. Baukhages, III, filed a brief on behalf of the Reconstruction Finance Corporation, as amicus curiae, in support of respondents.


MR. JUSTICE REED delivered the opinion of the Court.

The question for decision is whether or not a secured creditor of a national bank, holding a non-interest bearing claim, is entitled to interest for any period subsequent to the insolvency of the bank, when the assets on which he has a lien are sufficient to pay the principal and interest but the total assets of the bank are not sufficient to pay in full all creditors' claims as of the date of insolvency.

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