In the 1912 case, Ex Parte in the Matter of The First National Bank of Dexter, New York, the U.S. Supreme Court dealt with a dispute over bankruptcy proceedings. A creditor had filed an involuntary petition for bankruptcy against a debtor who was insolvent but not bankrupt under federal law at that time. The bank held security on some of this debtor's property and sought to foreclose on it before the completion of bankruptcy proceedings. However, lower courts ruled that once an involuntary petition for bankruptcy is filed and accepted by court, all assets are placed into receivership until final disposition by court order or discharge from bankruptcy status. The bank appealed to the Supreme Court arguing its right as secured creditors should take precedence over unsecured creditors' rights in a pending insolvency proceeding where no trustee has yet been appointed nor any adjudication made regarding actual state of insolvency or non-insolvency. The Supreme Court upheld these rulings stating that upon filing an acceptable petition for involuntary bankruptcy all assets become part of estate subject to control by receiver or trustee when appointed even if there is no formal declaration yet about whether entity is actually insolvent/bankrupt.

In the dissenting opinion for Ex Parte in the Matter of The First National Bank of Dexter, New York, 1912 case, it was argued that a national bank should not be allowed to file a voluntary petition for bankruptcy. The dissenting justices believed that Congress did not intend for banks to use this provision when they enacted the Bankruptcy Act. They pointed out that allowing such an interpretation would lead to absurd results and could potentially harm creditors who rely on specific provisions within banking law designed to protect them. Furthermore, they noted that there were other legal mechanisms available if a bank found itself insolvent or unable to meet its obligations. Therefore, according these justices' view point; it was inappropriate and unnecessary for courts to interpret the law in such a way as permitting national banks access into bankruptcy proceedings voluntarily.