In an extra cross-claim registered by the Organization on twenty-eight, 1948, it so-called one to in making the newest developments out-of told you $6,three hundred,100000 to help you Ammann as the purported Conservator getting Connection, San francisco Lender or other mix-defendants «were using entirely or perhaps in region, currency, funds, and you will possessions, that they know was owned by, the house from, and of the Government Home loan Financial from La [otherwise owned by its stockholders] and that said money, financing and you can property was acquired because of the mix-defendants by deceptive and you may malicious seizure and confiscation off said Los Angeles Bank * * *.»
Next white was shed toward individuals states because of the a quarrel off counsel having Los angeles produced in judge in the main case for the July 30, 1948. The guy stated:
An official holding of Judge was that shareholders regarding Connection (Mallonee) was basically estopped, because Connection might be, off difficult the fresh terms of your Operate, Domestic Owners’ Financing Work off 1933, hence authorized brand new Board so you can recommend the conditions and terms below and therefore a conservator ed, 332 You
«We [La Bank] are asserting claims to the latest $6,three hundred,one hundred thousand value of notes into put about registry of your court, carried out by the Ammann just like the Conservator, and is also our very own claim that the cash regularly create such fund, from inside the highest area, was in fact financing of your La Bank.»
It said that during the several months when you’re Ammann was a student in charges off Organization because the Conservator, Connection borrowed regarding Financial off San francisco figures surpassing $six,300,one hundred thousand hence figures had been all the time secure as required less than the fresh terms of the Government Financial Lender Operate and statutes and you may regulations implemented pursuant thereto, because of the assignment and pledge off You Regulators Securities, promissory cards secured by the mortgage loans otherwise deeds away from trust for the actual property, and you can stock stored from the told you Association in told you Bank out-of San Francisco. That every said amounts so borrowed by the Organization were utilized by the Relationship during the transacting and you will operating the business out-of Connection and for objectives in order to the advantage of the business regarding Organization.
For the a response of the Bank out-of San francisco (however case) towards revised mix-allege away from Organization hence respond to try filed July 29, 1948 San francisco means the mortgage built to Connection on the following trend
Just like the record indicates, new contradictory contentions respecting the latest impounded funds build a complicated picture. Because of the importance which most of the parties put on this type of finance we have provided him or her a lot more tricky medication about margin. 4
Ahead of finishing so it section of our very own view reference should be made on the feedback expressed by the Supreme Judge within the Fahey v. Mallonee, 332 You.S. 245, 67 S. Ct. 1552, 91 L. Ed. 2030, in regards to the things and therefore sustain close to the difficulty of validity of notes kept by Home loan Financial away from San Francisco. S. within page 256, 67 S. Ct. within page 1557. A last choice is it was error to oust the latest conservator (Ammann) or perhaps to enjoin any of their process, or perhaps to enjoin this new administrative hearing to the their meeting. 332 You.S. at the webpage 257, 67 S. Ct. at page 1557. Brand new stated lien out of San francisco with the impounded financing is actually according to this type of notes.
To own reveal record of your process regarding the straight down court leading up to the transaction impounding the money, recourse will be must this new printed transcript out of checklist into this new desire however instance (twelve,511). This new action of Organization getting order away from impound seems from the pp. 3562 so you can 3597; the new action from Connection getting your order in order to San francisco so you’re able to reveal end up in as to why loans shouldn’t be impounded appears within pp. 3597 to help you 3599; the transaction directed in order to Bay area and you can La demanding these banks to display lead to as to the reasons the newest motion out of Relationship so you’re able to impound money advertised because of the Connection really should not be granted, seems in the pp. 3599 so you’re able to 3601; the latest «Return» off Bay area on the court’s order to demonstrate lead to appears within pp. 3690 so you can 3752; the latest «Return» off Los angeles on court’s order to display end up in appears during the pp. 3642 to help you 3646; the latest impounding purchase cash advance in Colorado Frederick of courtroom, dated March thirteen, 1948, appears on pp. 8399 so you’re able to 8525.