In the case of Capital National Bank of Lincoln v. First National Bank of Cadiz, 1898, the U.S Supreme Court was tasked with resolving a dispute over debt repayment between two banks. The Capital National Bank had loaned money to an individual who subsequently went bankrupt before repaying his debts. As part of bankruptcy proceedings, this debtor's assets were sold off and some proceeds from that sale were deposited in the First National Bank of Cadiz. The Capital National bank claimed these funds as payment for their outstanding loan but faced opposition from other creditors also seeking repayment from those same funds. The court ruled in favor of the First National Bank stating that it could not be held responsible for determining which creditor had priority claim on a debtor’s assets once they are deposited into its accounts unless there is evidence suggesting collusion or fraud by the depositing party (the trustee). This ruling established precedent regarding how financial institutions handle deposits related to bankruptcy cases; essentially freeing them from responsibility in disputes among creditors about who has rightful claim to such monies.

The dissenting opinion in the case of Capital National Bank of Lincoln v. First National Bank of Cadiz argued that the majority's decision to allow a national bank to sue another national bank was inconsistent with previous rulings and interpretations of federal law. The dissent contended that Congress, when it established national banks, did not intend for them to have broad legal powers beyond those explicitly granted by statute. Specifically, they believed that a national bank should not be able to bring suit against another unless such action is expressly authorized by Congress or if both parties are citizens of the same state - neither condition being met in this case. They also expressed concern about potential negative implications on banking operations and relationships between financial institutions if lawsuits between banks were permitted without clear legislative guidance.