Marine Bank v. Weaver et Ux. (455 U.S. 551)
U.S. Supreme Court · decided March 8, 1982 · Supreme Court Database (Spaeth)
- Citation
- 455 U.S. 551 · 102 S. Ct. 1220
- Decided
- March 8, 1982
- Term
- October Term 1981
- Vote
- 9–0
- Majority author
- Justice Burger
- Issue area
- Economic Activity
- Disposition
- Reversed and remanded
- Outcome
- Petitioning party won
- Ideological direction
- Conservative
Opinion excerpt
Chief Justice Burger delivered the opinion of the Court. We granted certiorari to decide whether two instruments, a conventional certificate of deposit and a business agreement between two families, could be considered securities under the antifraud provisions of the federal securities laws. J — I Respondents, Sam and Alice Weaver, purchased a $50,000 certificate of deposit from petitioner Marine Bank on February 28, 1978. The certificate of déposit has a 6-year maturity, and it is insured by the Federal Deposit Insurance Corporation. The Weavers subsequently pledged the certificate of deposit to Marine Bank on March 17, 1978, to guarantee a $65,000 loan made by the bank to Columbus Packing Co. Columbus was a wholesale slaughterhouse and retail meat market which owed the bank $33,000 at that time for prior loans and was also substantially overdrawn on its checking account with the bank. In consideration for guaranteeing the bank’s new loan, Columbus’ owners, Raymond and Barbara Piccirillo, entered into an agreement with the Weavers. Under the terms of the agreement, the Weavers were to receive 50% of Columbus’ net profits and $100 per month as long as they guaranteed the loan. It was also agreed that the Weavers could use Columbus’ barn and pasture at the discretion of the Piccirillos, and that they had the right to veto future borrowing by Columbus. The Weavers allege that…
Excerpt of a 17,609-character opinion. The full text and citation network load in the interactive viewer above.