Farmers' Loan & Trust Co. v. Madison Mfg. Co.

Citations

• 153 F. 310
• 1906 U.S. App. LEXIS 5092

Syllabus

<p>1. Corporations — Mortgages—Bonds—Execution.</p> <p>In proceedings for tbe foreclosure of a mortgage securing bonds of a corporation, evidence held to sustain a finding that the entire issue contemplated and secured by the mortgage were outstanding obligations of the corporation.</p> <p>2. Same — Bondholders—Estoppel.</p> <p>Where corporate bonds in controversy were issued under a certain contract, the holders of a part of the bonds were estopped, while claiming the right to enforce the same, to assert that' others were unenforceable be- ' cause of the alleged illegality of the contract.</p> <p>3. Same — Bona Fide Holders.</p> <p>Where a treasurer of a corporation borrowed certain money from a bank, which he used for the corporation’s benefit, and pledged to secure the same certain of the corporation’s bonds, the bank was a bona fidéholder of such bonds, and entitled to enforce the same to the extent of' the money so applied to the corporation’s benefit, regardless of the treasurer’s authority to execute notes for money borrowed for the corporation.</p> <p>4. Payment — Renewal op Notes.</p> <p>Where the treasurer of a corporation borrowed certain money from a bank for the benefit of the corporation, and iiledged certain of its bonds, as collateral, the fact that such treasurer and his firm gave new notes for such indebtedness, including further advances, the last of which stated on their face that the bonds were held as collateral, did not constitute payment of 'the original indebtedness.</p> <p>■ . [Ed. Note. — For eases in point, see Cent. Dig. vol. 39, Payment, §§ 78-86J</p> <p>5. Pledges — Bonds—Bona Fide Purchaser — Notice. ' , ;</p> <p>Certain corporate bonds, payable to bearer and duly certified by the trustee to have been properly issued, came into the hands of the corporation’s treasurer, pursuant to certain reorganization contracts between the person controlling the corporation and himself, after which they were pledged -by the treasurer to a bank to se