Who's money did they loan?

by alexoscarew | January 9, 2013 at 10:44 pm

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Please read these cases, then open the gif for Title 62 Revised Statutes Chapter 4. Read section 37 real close and ask yourself, Who's money did they loan?

A national bank cannot lend its credit or become the guarantor of the obligation of another unless it owns or has an interest in the obligation guaranteed especially where it receives no benefits therefrom. Citizens' Nat. Bank of Cameron v. Good Roads Gravel Co., Tex.Civ.App.1921, 236 S.W. 153, dismissed w.o.j.

A national bank has no power to guarantee the performance of a contract made for the sole benefit of another. First Nat. Bank v. Crespi & Co., Tex.Civ.App.1920, 217 S.W. 705, dismissed w.o.j.