In re Northern Bank
In re NORTHERN BANK OF NEW YORK In re CITY OF NEW YORK
In re Northern Bank, 148 N.Y.S. 70 (1914)
Headnotes
1. Municipal Corporations (§ 255%, New, vol. 4 Key-No. Series)—Governmental Powers and Functions—Right to Preference for Debt.
Where a city had funds, derived from taxes, water rents, assessments, etc., on deposit with an insolvent bank, it was not entitled to preference in payment over other depositors and creditors by virtue of its public character, since, the money having already been received by the corporation, it belonged, not to the people of the state, but to the corporation as a separate entity acting for its own purposes, and not a subdivision of the state.
2. Municipal Coepobations (§ 53*)—Political Status—Relation to State.
Except when a city is acting in a purely governmental capacity, it is not a mere subdivision of the state and not a sovereign power.
[Ed. Note.—For other cases, see Municipal Corporations, Cent. Dig. §§ 141, 143; Dec. Dig. § 53.*]
3. Municipal Coepobations (§ 1*)—Natuee and Status.
Municipal corporations are independent corporate entities created by the state, not only for governmental purposes, but also to do acts not governmental in their scope, though they be for the common good of the inhabitants.
[Ed. Note.—For other cases, see Municipal Corporations, Cent. Dig. §§ 1, 1%; Dec. Dig. § 1*
For other definitions, see Words and Phrases, vol. 5, pp. 4620-4627; vol. 8, p. 7726.]
Summary
In the matter of the Northern Bank of New York. Motion by the City of New York for the preferential payment of its deposit. Motion denied, and the city appeals.
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Opinion of the Court
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PER CURIAM.
Order affirmed, with $10 costs and disbursements on the opinion of Mr. Justice Lehman at Special Term. Order filed.
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