BANKS AND BANKING - STOCKHOLDER\u27S STATUTORY LIABILITY FOR ADDITIONAL ASSESSMENT - STATUTE OF LIMITATIONS

The plaintiff, receiver of the Bank of Saginaw, a Michigan state bank, sought to collect an assessment of one hundred per cent on ninety-six shares of stock of the bank, held by the respondent as trustee for Gardner Grout Rose. On August 31, 1933, the Commissioner of the Michigan State Banking Department, with the approval of the Governor, ordered the then conservator to levy an assessment on stockholders of the bank. On October 31, 1933, the conservator was replaced by a receiver. On September 5, 1934, the Michigan State Banking Commissioner, also with the approval of the Governor, made an order to enforce the liability of the stockholders. The action in this suit was commenced September 3, 1937. Defendant moved for summary judgment on the ground that the cause of action did not accrue within three years next preceding the commencement of the action. Held, the New York three-year statute of limitations commenced to run on the date of the first order, and the action was barred. Bicknell v. Central Hanover Bank & Trust Co., 169 Misc. 7, 6 N. Y. S. (2d) 704 (1938)