DocketNumber: Appeals, 17-19
Judges: Kephart, Schaerer, Maxey, Drew, Linn, Stern, Barnes
Filed Date: 1/26/1938
Status: Precedential
Modified Date: 11/13/2024
Plaintiffs appeal from a decree dismissing their bill on preliminary objections under Equity Rule 48. As sureties, with Lansdowne Bank and Trust Company1 as principal, they2 executed separate bonds to the defendant, the School District of the Borough of Yeadon, agreeing to indemnify the School District against loss on its deposits in the bank.
When the Secretary of Banking took possession December 18, 1931, the amount of the School District's deposit was $68,341.70. The three bonds given by the plaintiff sureties aggregated $38,000. The bank had assigned to the School District as collateral two mortgage bonds in the face amount of $10,000 each.3
On September 27, 1933, the receiver paid a dividend of 15% and on March 19, 1935, a dividend of 12%, making a total of $18,452.24 received by the School District from the receiver. The plaintiffs also aver that pursuant to the demand of the School District they paid to it the principal of each bond, a total of $38,000. They then aver that the School District has been paid the sum of $38,000 plus the dividends received by the receiver, $18,452.24, and that the two $10,000 mortgages received as collateral should be treated as payment, under *Page 371
the bankruptcy rule for distribution of insolvent estates (seeUnited Security Trust Co. Case,
The Act of 1923, with amendments, under which the Secretary took possession, provided for the filing of accounts and the adjudicating of claims. On that subject we said in Cameron v.Carnegie Trust Co.,
"The court shall grant to the party against whom the order is sought the right to appear, within ten days *Page 372 after notice is given, to show cause why the order should not be made. The court shall have the power, at the end of the ten-day period, ex parte if the other party does not appear to show cause, or upon the merits, if the party does appear, to issue the aforementioned order." Article X provides for proof of claims, accounting and distribution.
If the plaintiffs have any claims, the Act provides that they shall be presented when the receiver's account is filed.
The decrees are affirmed at appellants' costs.