failed bank

failed bank
A bank which is insolvent, or has failed to meet its obligations to depositors and other creditors, and has been taken over by the banking department for liquidation and closing of its affairs. Godfrey v Terry (US) 7 Otto 171, 24 L Ed 944; 10 Am J2d Banks §§ 754 et seq. See insolvency of bank.

Ballentine's law dictionary. . 1998.

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