Article Text
CHARGED WITH FAILING DUTY.
Receiver of Bank of Cowpens Seeks Recovery for Alleged Excessive Loans to Officers.
Spartanburg, Dec. Fant, state bank examiner, and his surety, the Fidelity and Deposit Company, of Maryland, are made joint defendants in $40,000 damage suit filed here in Tuesday connection with the failure of the Cowpens Security Bank, of Cowpens, April 30, 1929. complaint alleges that Mr. Fant "failed to perform duties, that he failed remedy or discontinue said illegal practices and, after the said bank became insolvent and the conduct the failed take and retain of the assets of said bank and place the affairs of the same in the hands The action brought by Harvey attorney, senting Claude R. Dunbar, receiver for the bank. Charge Failure to Act. The complaint alleges that Mr. Fant failed to act though he aware from his examinations that Brown's brothers, H. and Brown, had borrowed large sums excess the limit scribed by law and that some of pre- the loans improperly secured. further alleged that large loans were made to Directors Cash, Moore and Moseley and properly approved. That the capital and surplus the bank totally exhausted and the bank deposits tracted credit after insolvent known to the examiner, the complaint charges. Asks $40,000 Damages. The complaint alleges the depositors creditors of the bank been damaged by failure the Mr. Fant "to well and truly form his duties said office the sum of forty thousand dollars. The complaint, in part follows: defendant, Albert Fant, state bank examiner, did make, or caused to be made by his examinations the affairs the CowpensSecurity Bank from time to time until the said bank by the board of directors April 1929. the reports of said investigations and examinations the by examiner show repeated continued violations the laws and criminal statutes this state in the following parto-wit: Charge Improper Loans. "That Brown continuously in excess of the limit allowed by law; that such loans and credits never legally approved; that he served president of said bank without ing bond by the statutory laws of this State the close of said bank on April 30, President Brown's brother, H. Brown, continuously excess the limit prescribed and that such loans were adequately secured, being secured largely the endorsement President Brown. President Brown's brother. was continuously limit prescribed by and that such loans were not properly secured. "That loans various persons, including directors, excess of the legal limit were continuously "That large loans were repeatmade Cash, Moore and Moseley and were never propCash and Moore were allowed rectors without the prescribed amount stock. Credit Not Approved. no excessive line credit ever approved by the directors required by law. "That large. excessive and illegal overdrafts were habitually allowed. the capital and surplus of said bank totally exhausted and loss to creditors and depositors indicated many months before the bank was closed by resolution the board directors. "That the bank was insolvent by resolution of the board of directors on April "That the officers of said bank receive deposits and contract credits after the bank became solvent. the various illegalities repeatedly brought to the tention the directors said bank and that the same were not remedied Failed in Duty. "That the defendant. Albert Fant. bank examiner, has failed his duties. that he failed to remedy or discontinue said illegal practices after the said bank became insoland the dishonest conduct of bank failed take and retain the assets of said bank and place the
(Continued on page
