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U.S. Supreme Court

Knox National Farm Loan Assn. v. Phillips, 300 U.S. 194 (1937)

Knox National Farm Loan Assn. v. Phillips

No. 389

Argued January 14, 15, 1937

Decided February 1, 1937

300 U.S. 194


1. A judgment of a state court against an insolvent association for a sum of money is final, although accompanied by provisions requiring the debtor to turn over all of its property to a receiver for liquidation of its business and payment of the debt. P. 300 U. S. 197.

2. Under the Federal Farm Loan Act, a national farm loan association cannot be required to retire, and repay the par value of, shares subscribed for and pledged with it by a member in connection with the procurement of a loan from a federal land bank, while the bank refuses to retire, and make repayment for, the corresponding shares of bank stock subscribed for by the association in that connection and pledged with the bank. P. 300 U. S. 198.

3. A shareholder of a farm loan association, subject by statute to an extra personal liability for its debts, is not entitled to have his shares retired and his subscription payment repaid when the association is insolvent and corresponding subscriptions to the stock of the federal land bank that made the loan have not been cancelled and refunded. P. 300 U. S. 201.

4. A receivership for the purpose of satisfying a judgment falls with the judgment. P. 300 U. S. 202.

5. A national farm loan association is an instrumentality of the Federal Government; the time and manner of its liquidation are governed by the federal statute, and jurisdiction does not reside in the tribunals of a State to wind up the business of this governmental agency either by a receivership or otherwise. P. 300 U. S. 202.

54 Oh.App. 334 reversed.

Certiorari, 299 U.S. 533, to review the affirmance of a decree against the National Farm Loan Association for the par value of certain of its shares, accompanied by provisions for placing the Association in the hands of a receiver for the liquidation of its business.

Page 300 U. S. 195

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