If a savings bank makes a loan contrary to a statute,1 or if it discounts a note without authority of law,2 or if it receives a bond to enable it to continue its business,3 the various instruments can be enforced by the bank. The presumption will be indulged that an act is not unlawful until it is shown to be so.4 But one case holds that a bank carrying on an unlawful business by making a loan upon a discount does an unlawful act, and cannot recover in quasi-contract,6 but this ruling is not to be commended.6 Conversely, the bank cannot defend against a depositor's suit because the deposit was in excess of the limit allowed by law,7 nor can it defend against an unlawful loan where it has received the benefit.8 Such is the rule as to a special deposit,9 or upon a purchase by a broker where it receives the stock and the broker sues for his commission.10 But if the contract was forbidden by law because it was immoral, the bank having received nothing of value,11 and in any case where it has received no property or thing of value under a contract, it may defend on the ground of ultima vires.12 The rules of law applicable to savings banks do not differ from the ordinary rules applicable to these transactions stated in sections 27, 32 and 33, ante, which should be consulted. The liability of officers upon ultra vires acts is noticed in section 355, ante.

10In re Miners' Bank, 13 Wkly. Notes Cas. 370.

11 Fifth Ward Sav. Bank v. First Nat. Bank, 48 N. J. Law, 513.

12 In re Mutual Soc, 2 Hughes, 374,

13 Heironimus v. Sweeney, 83 Md. 146.

1 Farmington Sav. Bank v. FalL 71 Me. 49.

2 United Germ. Bank v. Katz, 57 Md. 12a

3Hurd v. Green, 17 Hun, 327; Hurd v. Kelley, 78 N. Y. 588. The same rule applies as to other banks. If the note is void, the security may be enforced as for a loan. Pratt v. Eaton, 79 N. Y. 449. See also Pratt v. Short, 79 N. Y. 437, and Sec. 33, ante.

4 Williams v. Imp. & Trad. Nat. Bank, 44 I11. App. 295.

5In re Jaycox, 13 Blatch. 70.

6See Sec. 33, ante.

7 Taylor v. Empire State Sav. Bank, 66 Hun, 538.

8 Heironimus v. Sweeney, 83 Md. 146.

9 Cogswell v. Rockingham Sav. Bank, 59 N. H. 43.

10Sistare v. Best, 88 N. Y. 527.