First & Security State Bank

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: *
Location: Crosby, North Dakota (48.914, -103.295)

Metadata

Model: gpt-5-mini
Short Digest: 2f925778

Response Measures

None

Description

Article (The Bismarck Tribune, 1926-06-11) reports that two banks had closed their doors on account of insolvency and a reorganization plan allowed the two banks to consolidate and reopen as one bank subject to conditions. No bank run is mentioned; the episode describes suspension/closure for insolvency followed by authorized reopening as a reorganized/consolidated bank.

Events (3)

1. * Other

Newspaper Excerpt: A reorganization plan was worked out whereby the two banks were authorized to consolidate and reopen as one bank, subject to certain conditions imposed by the state banking department and the guaranty fund commission, one of which was that all the depositors should agree to leave their money on deposit in the reorganized bank for certain stated periods of time, running from one to four years. The county commissioners ... entered into the proposed agreement on the condition ... that the sureties on the depository bonds become parties thereto. (paraphrase from article.)
Source: newspapers

2. * Reopening

Newspaper Excerpt: the two banks were authorized to consolidate and reopen as one bank, subject to certain conditions imposed by the state banking department and the guaranty fund commission.
Source: newspapers

3. * Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank(s) closed due to insolvency (financial failure), prompting reorganization conditions by state banking department and guaranty fund commission.
Newspaper Excerpt: Divide county had moneys on deposit in two banks which closed their doors on account of insolvency.
Source: newspapers

Newspaper Articles (1)

1. June 11, 1926 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, June 11, 1926

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Article Text

# SUPREME COURT From Stutsman County John P. Seiler, plaintiff and appellant, vs. A. C. Gelhar et al as district school board of Montpelier school district, Stutsman county, North Dakota, defendants and respondents. Syllabus: Chapter 118, S. L. 1921, relating to consolidated schools, which provides that "transportation may be furnsihed either by the use of public conveyances or by allowing each family as compensation" a sum of money dependent upon the distance to be traveled and the number of children in the family, is not violative of sections 147, 148 and 149 of the state constitution, as depriving children or their guardians of any constitutional rights, merely because the option whether transportation by public conveyance or compensation in lieu thereof shall be furnished, lies in the discretion of the school board or in the judgment of the people, through an election pursuant to subsection 3, chapter 113, supra. Appeal from the district court of Stutsman county, Hon. Fred Jansonius, district judge. Application to the district court for a writ of mandamus. The application was denied and the petition dismissed. Order affirmed. Opinion of the Court by Johnson, J. S. E. Ellsworth, Jamestown, N. D., attorney for plaintiff and appellant, Carr & Rittgers, Jamestown, N. D., attorneys for defendants and respondents. From Ward County Union National Bank of Minot, a corporation, plaintiff and respondent, vs. F. C. Lenton, H. M. Wilson, and E. H. Ray, defendants, F. C. Lenton and E. H. Ray, defendants and appellants. Syllabus: Following Thompson Yards, Inc., v. Richardson N. D. 199 N. W. 863, it is held, under the facts stated in the opinion, that the lien of a crop mortgage survives a discharge in bankruptcy, where such mortgage is executed in the fall, covering the next maturing crop. Appeal from the district court of Ward county, Hon. Jno. C. Lowe, judge. Affirmed. Opinion of the court by Birdzell, J. Halvor L. Halvorson, Minot, N. D., attorneys for appellants. Nestos, Herigstad & Stenersen, and B. H. Bradford, of counsel, Minot, N. D., attorneys for respondent. From Divide County R. W. Frazier, relator and respondent, vs. Carl Schultz et al as county commissioners of Divide county, North Dakota, respondents and appellants. First & Security State bank of Crosby, a corporation, et al, respondents and appellants. Syllabus: Divide county had moneys on deposit in two banks which closed their doors on account of insolvency. A reorganization plan was worked out whereby the two banks were authorized to consolidate and reopen as one bank, subject to certain conditions imposed by the state banking department and the guaranty fund commission, one of which was that all the depositors should agree to leave their money on deposit in the reorganized bank for certain stated periods of time, running from one to four years. The county commissioners, after fair and honest consideration, determined that owing to the then condition of the two insolvent banks, as well as the questionable financial responsibility of the securities on the depository bonds, it would be for the best interests of the county to enter into the proposed arrangement. They thereupon entered into the proposed agreement on the condition, however, that the sureties on the depository bonds become parties thereto. Held that the county commissioners did not exceed their authority in making such agreement.