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Hopkins Savings Association v. Cleary

296 U.S. 315 (1935)

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Hopkins Savings Association v. Cleary

United States Supreme Court
296 U.S. 315 (1935)

  • Written by Robert Cane, JD

Facts

Originally, Hopkins Federal Savings and Loan Association (Hopkins) (defendant) was a Wisconsin building-and-loan association (i.e., a financial institution that provided loans for its members to buy homes). Hopkins converted into a federal savings-and-loan association. Hopkins converted its organization pursuant to § 5 of the Home Owners’ Loan Act of 1933, which required merely a majority vote of shareholders present at a legally convened meeting. The State of Wisconsin had its own requirements for dissolution of a state-chartered association. The Wisconsin Banking Commission (plaintiffs) sued Hopkins in state court, seeking a declaration that the conversion be annulled and that the officers of Hopkins either continue conducting business in compliance with Wisconsin law or properly dissolve the business. The state court entered judgment in favor of the Wisconsin Banking Commission. Hopkins appealed.

Rule of Law

Issue

Holding and Reasoning (Cardozo, J.)

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Casebooks

Banking Law

Key Terms