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Bills And Notes - Bad Faith On Part Of Pledgee Taking Bonds
Bills And Notes - Bad Faith On Part Of Pledgee Taking Bonds
Michigan Law Review
Defendant, a Wisconsin firm, issued certain bearer bonds secured by a mortgage held by the T corporation, as trustee. A provision in the mortgage defining the duties of the trustee in the disposition of bonds delivered to it was incorporated into the bonds by reference. The trustee being insolvent, plaintiff bank, as pledgee of some of the bonds taken to secure personal loans to the trustee, petitioned the referee in bankruptcy for permission to sell them, claiming to be a bona fide pledgee for value. Held, since federal courts are bound to follow state decisions interpreting state statutes declaratory …
Bills And Notes - Holder In Due Course -Antecedent Obligation As Value
Bills And Notes - Holder In Due Course -Antecedent Obligation As Value
Michigan Law Review
X, entrusted with the safekeeping of negotiable bearer bonds of A and B, stole A's bonds. On A's request for his securities, X, purporting to deliver what was requested, delivered B's bonds. The wrongdoing was not discovered for over a year. B then sued A to recover the bonds. Held, B may recover, for A is not a purchaser for value. State ex rel. Sorenson v. Nebraska State Sav. Bank, (Neb. 1934) 255 N. W. 52.