The acceptance of a deposit by a banking corporation when it is insolvent is fraudulent, since such bank can not intend to repay such deposit.1 The same principle applies where money is borrowed2 by an insolvent bank or trust company, rescission being allowed if the money has not been mingled with the general funds of such institution.

Subsequent depositors will be given a priority over one who has been induced, by the fraud of an insolvent bank, to buy stock therein,3 even if such bank has, at all times, had on hand an amount in excess of the price of such stock.4