Cooper v. Ray

Citations

• 47 Ill. 53

Syllabus

<p>1. Pledge—to render a pledge valid, delivery of possession is essential. To render a pledge valid as a security, there must be a delivery of the property to the pledgee, and the loss or delivery back of the possession, with the consent of the pledgee, terminates his title.</p> <p>2. Same—a delivery back for a temporary me—will not invalidate pledgees title. But if the possession is delivered back to the pledgor, for a temporary purpose only, and it is agreed to be re-delivered to the pledgee, if the pledgor refuses to restore it after the purpose is accomplished, the pledgee may recover as against him.</p> <p>3. Same—effect of a new lien created—after tlve return of the property to the pledgee. Where a pledgee of property, delivered back the possession to the owner for a temporary purpose only, and after the accomplishment of such purpose, the property was returned to him, and the pledgor subsequently, and while the property was in the possession of the pledgee, mortgaged it to a third person:. Held, that the mortgage lien thus acquired was subordinate to the title, of the pledgee.</p> <p>4. And in such case, the party having the mortgage lien would have no right to take possession of the property, as against the pledgee, without first paying, or tendering to him the amount of his debt.</p>