In the 1942 case of Reconstruction Finance Corporation v. Bankers Trust Co., the Supreme Court ruled on a dispute involving bond payments and interest rates. The Reconstruction Finance Corporation (RFC) had issued bonds to raise capital during the Great Depression, with Bankers Trust acting as trustee for bondholders. When RFC attempted to pay off these bonds early at par value, Bankers Trust argued that they should be paid at market value which was higher due to falling interest rates since issuance of the bonds. The court held in favor of RFC, ruling that under terms of trust indenture and applicable Treasury regulations, RFC could redeem its outstanding bonds prior to maturity date by paying principal amount plus accrued interest without any premium or additional compensation for loss resulting from redemption before maturity.

In the dissenting opinion for Reconstruction Finance Corporation v. Bankers Trust Co., Justice Frank Murphy argued that the majority's decision was a misinterpretation of Section 77B and Chapter X of the Bankruptcy Act. He contended that these sections were designed to protect creditors, not debtors like RFC, from undue prejudice in bankruptcy proceedings. According to him, allowing RFC to assert its claim against debtor corporations without first obtaining leave from the court overseeing their reorganization undermined this purpose by potentially disrupting ongoing reorganization efforts and prejudicing other creditors' interests. Furthermore, he disagreed with the majority's view that Congress intended for government agencies like RFC to be exempted from normal bankruptcy procedures when it enacted these laws during Great Depression-era reforms aimed at protecting ordinary investors and stabilizing financial markets.