Bergin v. McCabe

Citations

• 91 Ohio St. (N.S.) 427

Syllabus

<p>Journal entry: It appearing to the court that the certificates of stock were delivered to the Dennison National Bank as collateral security for a loan of money then and there made by the bank to the owner of the stock prior to the commencement of the suit in attachment, and prior to the issue and service of garnishee process therein, and at a time when the bank and the owner of the stock had full right and authority to make and enter into the contract in reference thereto; and it further appearing that by the terms of the contract of pledge of this stock as collateral security for the repayment of money then loaned that the Dennison National Bank was authorized and empowered upon default in the payment of the debt, to secure which the certificates of stock were pledged, the bank had the right and authority to sell said stock and apply the proceeds thereof to the payment of said debt, yielding and paying to the owner of the stock the surplus, if any, over and above the amount of such indebtedness, the court finds that the attachment proceeding brought thereafter and the garnishee process issued and served upon the corporation issuing the certificates of stock could not and does not affect the right of the Dennison National Bank under its • contract with the owner made at a time when no other person had any interest or rights in said stock, or the certificates evidencing the ownership thereof, and that no other or further interest could be reached therein, except the surplus after paying the debt due the bank, and that the creditors of the pledgor could not by any process acquire any more rights in the stock, the certificates of which were pledged with the Dennison National Bank, than the owner of the stock had at the time of the commencement of the attachment proceedings; and it not appearing that the Dennison National Bank exceeded its authority in making such sale or that said sale was fraudulently made, the purchaser thereunder acquired full and perfect title i