Within the a supplemental get across-allege submitted because of the Organization on may twenty-eight, 1948, they alleged you to for making the newest developments out-of told you $6,three hundred,100 to Ammann since supposed Conservator to have Association, San francisco Financial or other cross-defendants “were utilizing completely or even in region, money, finance, and you can assets, which they understood was indeed owned by, the house away from, and you will from the Federal Financial Bank from Los angeles [or belonging to the stockholders] and this told you money, financing and you will property had been gotten by the mix-defendants by the fraudulent and destructive seizure and you can confiscation out of told you Los Angeles Financial * * *.”

Next light is destroyed toward some states because of the a quarrel of counsel to have La produced in judge in the main circumstances towards July 29, 1948. The guy mentioned:

A formal holding of the Legal are that the shareholders out-of Association (Mallonee) have been estopped, while the Association would-be, from difficult the latest specifications of your own Work, Domestic Owners’ Loan Work off 1933, hence licensed the fresh new Panel to suggest the brand new terms and conditions not as much as which a good conservator ed, 332 U

“I [Los angeles Financial] is saying claims to the fresh new $six,3 hundred,100 property value notes on the deposit regarding the registry of your legal, executed by Ammann due to the fact Conservator, and it is our very own point out that money accustomed make this type of loans, within the highest part, was in fact funds of your Los angeles Financial.”

It asserted that in period if you find yourself Ammann was at charges away from Relationship just like the Conservator, Connection borrowed regarding Bank regarding San francisco bay area sums surpassing $six,three hundred,one hundred thousand hence figures was all the time safeguarded as required less than brand new provisions of your own Federal Home loan Lender Act and you can laws and regulations and you can statutes used pursuant thereto, because of the assignment and hope out-of All of us Government Securities, promissory cards secured because of the mortgages or deeds away from believe for the genuine assets, and you will stock stored from the told you Relationship in the told you Financial out of San Francisco. That all said sums very lent by the Relationship were utilized of the Organization during the transacting and you may working the organization out of Association and also for motives and the benefit of the organization regarding Organization.

When you look at the an answer of your own Financial regarding San francisco bay area (in the main instance) with the revised get across-claim away from Association and therefore respond to is actually registered July 30, 1948 San francisco identifies the mortgage built to Association about following manner

Once the number suggests, this new conflicting contentions respecting the fresh impounded money build a complicated picture. By the characteristics and therefore all the activities put on these types of money we have given him or her so much more advanced medication regarding margin. 4

In advance of concluding this element of our very own view site is going to be generated on opinions expressed from the Finest Judge from inside the Fahey v. Mallonee, 332 You.S. 245, 67 S. Ct. 1552, 91 L. Ed. 2030, concerning the issues which happen right on the difficulty of your own authenticity of one’s notes kept of the Home loan Lender out of San Francisco. S. within webpage 256, 67 S. Ct. from the web page 1557. A last decision is it was error to help you oust the fresh new conservator (Ammann) or to enjoin any kind of their proceedings, or even to enjoin the fresh new administrative hearing for the his conference. 332 You.S. at page 257, 67 S. Ct. at the webpage 1557. This new stated lien of Bay area for the impounded money was according to this type of notes.

For reveal listing of your procedures about down legal before the transaction impounding money, recourse might be had to new printed transcript away from listing towards the the fresh attract however case (a dozen,511). The fresh new activity away from Relationship getting acquisition of impound seems in the pp. 3562 so you can 3597; the brand new action of Association to have an order to help you San francisco bay area so you’re able to let you payday loan Flagler know lead to as to why financing shouldn’t be impounded seems on pp. 3597 so you’re able to 3599; the order directed so you can San francisco and La requiring this type of banking companies to display lead to as to why the latest activity regarding Connection so you can impound money stated of the Organization should not be supplied, seems at the pp. 3599 so you’re able to 3601; new “Return” regarding Bay area for the court’s order to show end up in appears in the pp. 3690 so you can 3752; the newest “Return” out of La for the court’s order to display trigger seems in the pp. 3642 to help you 3646; the newest impounding order of one’s courtroom, dated February 13, 1948, looks during the pp. 8399 so you’re able to 8525.