Mechanicks Nat. Bank v. D'Amours

2 Citing cases

  1. Peterborough Savings Bank v. King

    168 A.2d 116 (N.H. 1961)   Cited 21 times

    In addition to the statutory requirements set up by the Legislature, it has also been long established that the directors of savings banks stand in the position of trustees as to their depositors and must use due care in the management of the bank's affairs, including, of course, its loan policies. Mechanicks Nat. Bank v. D'Amours, 100 N.H. 461, 468; 9 C.J.S., Banks and Banking, s. 971. In the light of these indisputable principles, it would appear that when directors, in the exercise of business acumen and caution, supplement a loan made in accordance with the statutory requirements (s. 5 IV, supra) with additional collateral security as a further measure of protection for the depositors, they are fulfilling the precise purpose which the Legislature sought to accomplish by chapter 387 as well as exercising the due care required by common law. Mechanicks Nat. Bank v. D'Amours, supra. Legislation establishing fixed minimum standards, as does the above statute, for the amount and nature of the security to be held, is sometimes overtaken by events in these rapidly changing times. It is not unlikely that instances may occur, due to altered conditions, when legal security for a loan, sufficient when taken, may become inadequate.

  2. Mechanicks Nat. Bank v. Brady

    129 A.2d 857 (N.H. 1957)

    " This requires a determination of whether notwithstanding the more general provisions of RSA 564:18 relating to investments by trustees, the Pelissier trust may be invested in the Common Trust Fund by virtue of the Uniform Common Trust Fund Act (RSA ch. 391) which allows a bank qualified to act as fiduciary to establish a common trust fund. Except for the provisions as to investment in the underlying Pelissier trust, quoted in the above agreed statement of facts, the issues and the factual situation are identical with those involved in Mechanicks Nat. Bank v. D'Amours, decided this day. 100 N.H. 461. In the cited case we decided that the Uniform Common Trust Fund Act (RSA ch. 391) permitted the plaintiff to invest all or any part of the assets of an underlying trust in its Common Trust Fund, notwithstanding the restrictions as to investments applicable to trustees generally appearing in RSA 564:18, where the underlying trust contained no prohibition against investment in common trust funds.