Feckheimer v. National Exchange Bank

Citations

• 79 Va. 80
• 1884 Va. LEXIS 62

Syllabus

<p>1. National Banks—Loans on Stock Security.—Section 5,201, U. S. revised statutes, prohibits banking associations from making loans upon security of shares of their own stock.</p> <p>2. Idem—Idem—By-Laws diverso intuitu void.—By-law, though notice thereof be endorsed on the certificate of stock, is void, which prohibits a stockholder who is indebted to bank from transferring his stock without the consent of the board of directors.</p> <p>3. Equitable Jurisdiction and Relief.—Specific Performance—Inadequate Remedy at Law—Case at Bar.—L. & S. own shares of stock in N. E. bank of N., and failing, indebted to the bank, assign the shares to F., trustee. The certificates contain notice of such a by-law. Transfer could only be made upon the books of the bank, which refuses to allow said shares to be transferred to trustee. Latter files bill, asking that the bank be required to allow such transfer to be made on its books, and to issue new certificates therefor.</p> <p>Held:</p> <p>1. The remedy at law is not adequate, and it is not a case for compensation in damages, but for specific performance, which can only be enforced in a court of chancery.</p> <p>2. Trustee is entitled to have transferred for the purposes of the trust not only the shares, but all dividends that may be due on them.</p> <p>4. Construction of Deed.—A deed which conveys all the grantors’ “ property, real and personal,” embraces and conveys all their shares of such bank stock.</p>