Montana Attorney General Opinion 16-4

Opinion No.4. Banks and Banking-Depositor's Agreement. HELD: Form of depositor's agree- ment submitted is legal and binding upon depositors who sign it. December 11, 1934. Hon. Frank H. Johnson Superintendent of Banks The Capitol You have submitted the question whether or not the depositor's agree- ment, signed by the depositors of the Farmers State Bank of Bainville, Bainville, Montana, is legal. This agreement reads as follows: "I, the undersigned, having sur- rendered to the Farmers State Bank of Bainville, Bainville, Montana, my certificate of deposit in said bank, amounting to ____________ Dollars, and hav- ing agreed to accept in lieu thereof a new certificate of deposit in said of deposit in said bank. amounting bank for fifty per cent (50%) of the amount of said old certificate in full settlement thereof, do hereby ac- knowledge that I voluntarily made such compromise settlement in con- sideration of enabling said bank to recapitalize by the issuance and sale of preferred stock in the amount of Twenty-five Thousand Dollars ($25,- 000.00) to the Reconstruction Finance Corporation, and in further consider- ation of the Bank resuming normal banking functions, I hereby surren- der and waive all my rights, claims, or demands against said bank, ex- cept new certificate of deposit." In my opinion this agreement is legal and binding upon all depositors who sign the same.