Michigan Bank v. Eldred was a case heard by the United States Supreme Court in 1869. The case involved a dispute between the Michigan Bank and Eldred, a former employee of the bank. The bank had sued Eldred for breach of contract, claiming that he had failed to repay a loan he had taken out from the bank. Eldred argued that the loan was void because it had been made without the bank's board of directors' approval. The Supreme Court ruled in favor of the bank, finding that the loan was valid and enforceable. The Court held that the bank's board of directors had the authority to make the loan, and that Eldred was bound by the terms of the loan agreement. The Court also held that the bank was entitled to recover the amount of the loan from Eldred. The decision in Michigan Bank v. Eldred established that a bank's board of directors has the authority to make loans, and that those loans are binding on the borrower. The decision also established that a bank can recover the amount of a loan from a borrower who fails to repay it.

In Michigan Bank v. Eldred, the Supreme Court was asked to decide whether a state statute that allowed for the sale of mortgaged property without notice to the debtor was constitutional. The majority opinion held that such a law did not violate due process and could be enforced in federal court. However, Justice Field dissented from this decision on two grounds: first, he argued that it violated both natural justice and fundamental principles of fairness; second, he maintained that it violated Article IV Section 1 of the Constitution which guarantees citizens "the full faith and credit" clause when they move between states. He concluded by stating his belief that no government should have power to take away or impair vested rights without due process of law as guaranteed by the Fifth Amendment.