Commercial-German Trust & Savings Bank v. Conner

Citations

• 114 Miss. 644
• 75 So. 445

Syllabus

<p>1. Bankruptcy. Burden of proof. Bale of pledge.</p> <p>The burden of proving that a sale by a pledgee of the property of a bankrupt, made conformably to the contract of pledge was unfair, is on the trustee in bankrputcy of the pledgor who seeks to avoid the sale.</p> <p>2. Pledges. Purchase by pledgee. Agreement.</p> <p>Under a pledge agreement, giving the pledgee the right to purchase the securities pledged, at their market value, or at any judicial or auction sale, the pledgee is not required if he purchases at an auction sale to pay the true market value since there is no limitation in the agreement upon the right of the pledgee to buy at a sale of the securities at auction.</p> <p>3. Same.</p> <p>The term market value in such a contract means the present market value, not prospective value, since owing to the customs-of the banking business, neither of the parties could expect that the sale of the securities would be postponed for the coming of better and brighter financial weather.</p>