For the a supplemental cross-claim registered of the Association on 28, 1948, they so-called you to definitely for making the newest advancements out-of told you $6,three hundred,100 to help you Ammann as supposed Conservator for Connection, San francisco bay area Lender and other cross-defendants “were utilizing wholly or in part, money, fund, and you may assets, that they understood were owned by, the home from, and you may from the Federal Home loan Financial off La [otherwise belonging to its stockholders] and this told you money, funds and you can assets was in fact obtained by the cross-defendants from the deceptive and you will destructive seizure and you will confiscation out of said Los Angeles Lender * * *.”

Subsequent white is missing to the various says from the a disagreement from counsel to possess La made in legal however circumstances toward July 30, 1948. He said:

An official holding of Legal is Pike Road loans that investors away from Organization (Mallonee) were estopped, just like the Connection is, away from problematic the newest provisions of your Work, Home Owners’ Mortgage Operate of 1933, and this subscribed the newest Board in order to recommend new terms and conditions around hence an excellent conservator ed, 332 You

“I [La Financial] was saying claims to the brand new $6,three hundred,100000 worth of notes toward put regarding registry of judge, executed from the Ammann due to the fact Conservator, and is also the declare that the cash regularly make such loans, for the large region, was indeed finance of your own Los angeles Bank.”

It said that in months while Ammann was at charges off Association given that Conservator, Organization borrowed about Financial out-of San francisco bay area amounts surpassing $six,3 hundred,000 and this figures was at all times secure as needed under new specifications of the Federal Financial Lender Work and you will legislation and you will laws followed pursuant thereto, of the project and you can promise out-of Us Bodies Securities, promissory notes secure by mortgages otherwise deeds regarding faith on actual assets, and you will stock kept by the said Organization inside the told you Bank off San Francisco. That all said sums thus lent by Association were utilized because of the Relationship inside transacting and doing work the firm off Connection and for aim and to the benefit of the firm regarding Relationship.

In the a response of Financial regarding San francisco bay area (however circumstances) with the revised cross-allege out of Connection and therefore respond to is actually recorded July 29, 1948 Bay area means the mortgage made to Relationship regarding the following style

Since the list indicates, the brand new contradictory contentions respecting new impounded money build a complicated photo. Because of the benefits and this every activities put on such fund we have considering him or her alot more involved therapy in the margin. cuatro

Before concluding which section of all of our view reference are going to be generated on the feedback indicated by the Ultimate Court from inside the Fahey v. Mallonee, 332 You.S. 245, 67 S. Ct. 1552, 91 L. Ed. 2030, in regards to the issues which sustain directly on the problem of one’s validity of your notes stored by the Mortgage Lender regarding San Francisco. S. at page 256, 67 S. Ct. from the page 1557. A last choice is actually it was mistake so you can oust the brand new conservator (Ammann) or even to enjoin any of their legal proceeding, or even enjoin new administrative hearing towards their fulfilling. 332 U.S. within page 257, 67 S. Ct. from the page 1557. The fresh new stated lien off Bay area with the impounded funds was centered on this type of notes.

Getting reveal checklist of your procedures regarding the straight down judge prior to the order impounding money, recourse is needed to the printed transcript out of list for the new appeal however case (several,511). This new actions away from Organization to own buy regarding impound looks at the pp. 3562 to help you 3597; the latest actions off Organization to possess your order to help you San francisco bay area so you can reveal result in as to why funds should not be impounded seems on pp. 3597 to help you 3599; the transaction directed so you can San francisco and you can Los angeles requiring such banks to display result in as to why brand new motion out-of Relationship to impound the income reported of the Connection shouldn’t be offered, looks on pp. 3599 to help you 3601; the fresh “Return” off Bay area on the court’s purchase to exhibit produce looks at the pp. 3690 to help you 3752; brand new “Return” from La for the court’s buy to exhibit lead to seems from the pp. 3642 in order to 3646; the newest impounding purchase of your courtroom, dated February thirteen, 1948, seems within pp. 8399 so you can 8525.