The Bank of Alexandria v. Herbert was a case heard by the United States Supreme Court in 1814. The dispute centered around whether or not the bank had the right to collect on an unpaid debt from one of its customers, Mr. Herbert, who had died without paying his balance due. The court ruled that under Virginia law at the time, creditors were allowed to pursue debts even after death and thus granted judgment for the bank against Mr. Herbert's estate for payment of his outstanding debt plus interest and costs associated with bringing suit against him. This decision established precedent that creditors have a legal right to seek repayment from deceased persons' estates if they are owed money when those persons pass away without settling their accounts beforehand

In The Bank of Alexandria v. Herbert, the dissenting opinion argued that a bank's right to collect interest on an overdue debt was not absolute and could be limited by state law. Justice Johnson argued that the Constitution did not grant banks any special privileges or immunities from state laws, and thus it would be unconstitutional for federal courts to enforce such rights in cases where they were prohibited by state law. He further noted that while Congress had authority over interstate commerce, this power should only extend so far as necessary to protect citizens' property interests; beyond this point it would become an infringement upon states' sovereignty. Finally, he concluded that if a bank wanted protection against its debts being discharged due to local statutes then it should have taken steps before entering into contracts with borrowers in those jurisdictions which might limit their ability to collect interest payments after defaulting on loans.