The Citizens' National Bank of Fort Scott v. The Bank of Commerce
| Decision Date | 08 May 1909 |
| Docket Number | 16,035 |
| Citation | 101 P. 1005,80 Kan. 205 |
| Parties | THE CITIZENS' NATIONAL BANK OF FORT SCOTT v. THE BANK OF COMMERCE et al |
| Court | Kansas Supreme Court |
Decided January, 1909.
Error from Neosho district court; JAMES W. FINLEY, judge.
STATEMENT.
THIS action was commenced in the Neosho county district court by the Bank of Commerce to recover a balance due upon a promissory note which was executed by the other defendants in error. One of the defendants in the action, Edwin Erwin, was a non-resident of the state. The plaintiff caused an attachment to be issued against such defendant and had it levied upon his undivided interest in an oil-and-gas plant. The oil-and-gas plant was owned by several persons, who styled themselves the Chapple Oil Company, and were organized as a joint stock company. The contract of organization indicates how the original promoters intended the property should be held by the stockholders. The provision relating to the capital stock, so far as material here, reads:
The defendant Edwin Erwin was the owner of twenty-five shares of stock in this company. The Citizens' National Bank of Fort Scott held a promissory note executed by Edwin Erwin upon which there was due the sum of $ 12,871.20. To secure the payment of this note Erwin assigned and delivered his stock in the Chapple Oil Company to E. W. Minturn, in trust for the use and benefit of the Citizens' bank, as collateral security for the note. This assignment was made and delivered to E. W. Minturn prior to the commencement of the action in which the attachment was levied. The Citizens' bank set up these facts in this action in an interplea, to which a demurrer filed by the plaintiff bank was sustained. The interpleader prosecutes error.
Judgment reversed.
SYLLABUS BY THE COURT.
1. PLEDGES--Stock--Assignment and Delivery of Certificate--Change of Possession. The assignment and actual delivery to another of a certificate of stock in a joint stock company, by the owner thereof, for the purpose of pledging the property represented by such certificate as collateral security for the payment of a debt of such owner is sufficient to effectuate a change of the possession of such property from the owner to the holder of the assigned certificate when such property is not itself susceptible of delivery.
2. PLEDGES--Priority of Liens--Pledgee--Attaching Creditor. In such a case the holder of the assigned certificate will have a right to the property, for the purposes of such pledge, superior and prior to the rights subsequently acquired by an attaching creditor.
3. PLEDGES--Trusts and Trustees. A pledge to secure a debt...
To continue reading
Request your trial
-
Hall v. The Kansas City Terra Cotta Company (The Southwest National Bank of Kansas City
...was assigned to the bank, and such assignment must likewise be valid though made only by mere delivery of the contract. In Bank v. Bank, 80 Kan. 205, 101 P. 1005, it was "We understand that when personal property is pledged the pledgee acquires a right thereto which is superior to any right......
-
Briggs v. Kansas City Joint Stock Land Bank
...have in the note in question, was subject and inferior to the right, title and interest of respondent is justified by the record. Bank v. Bank, 80 Kan. 205; v. Coates, 196 F. 866. (2) The court committed no error in permitting Cravens to testify touching the verbal pledge agreement between ......
-
Walton v. Piqua State Bank
...in the hands of the pledgee the power to make the property available for satisfaction of the debt. In Citizens' Nat. Bank of Ft. Scott v. Bank of Commerce, 80 Kan. 205, 101 P. 1005, Jones on Pledges and Collateral Security (2d Ed.), § 37, is quoted as "A delivery of a document of title, whi......
-
Jones v. Coates
... ... National Bank of Ottawa for money borrowed, in the sum of ... Hobart, 17 Kan. 275; Citizens' National Bank v ... Bank of Commerce, 80 Kan ... ...