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The very recent ease of W e e f e v» Pearson, ?3 (2d) 673f whlefe
was decided on Leeember 1, 1034 by the Circuit Court of Appeals for the
Circuit, aid not involve it holding company but involved a trustee
similar to that involved in the Katloaal Peak of Kentucky
ease* (£eyes v* American Life * Accident In*« Co., 1 F» Supp. 612, #nd
Leurent v. Anderson, 70 F# {$&) 319)•
The «to@k of the Federal Trust Ctmp&ny, vhleb was later converted
into the Federal NfttioBuRl Beak of Saatoa, was delivered to ft trustee in
return for trust certifleetes* the trustee urns to hold the chares for
the holders of such trust certificates, to pay over all eftjrcinfs to themf
and to deliver the sharei t© the® upon terwin«itioii of the trust* The
holders of the trust certificates retained the right to vote the shares*
Moreover, the trust agreeae&t contained the following specific provision
wherebj the holders of the trust certificates undertook to pay any assess*
nent levied upon the shareholders of the bankt
n
ln the event of any assessment being m d e or ordered
upon the stockholders of the Federal Trust Company eaeh
registered holder of a trust certificate hereby agrees
f&r himself, his heirs, emeeutors, administrators and assigna to forthwith fay sueh assessment as any be smde upoa
or agaiiut th© stoek of the Federal Trust Cosapaay held by
the Pepeeltary wader this agreement and refflresented by the
trust eertif ieate held by him at the time 8»©h assessaient
Is made or ordered, and while such assessment in unpaid,
no trust oertifioate shall
be transferred or vam eertifi»
oate Issued therefor*9
In aooordane« with the wall established rule that assessments
levied on «toekholdere of national banks are colleetible from the real
crnners of the shares rather than the nominal or fietitleut owners, the
Comrt held that the holders of the trust ©ertifieatea n«r» liabl© for
Thi» @ft«« i» •tally aiitinguishable from the ettse of ft corporation otming bank stoek, becauf* It la veil settled that pro^«rty of the
eorporation belong» to It and not to lt« stooViiold«rB«
State Mlalag Cowpaxiy, £30 Fae.
St«infeld T.
@FedFRASER