First National Bank of Reading v. Ferguson

Citations

• 224 Pa. 397
• 73 A. 551
• 1909 Pa. LEXIS 805

Syllabus

<p>Bailment — Pledge of stock — Impairment of value — Banks and banking — Corporation.</p> <p>Where a national bank owning the majority of the stock of a corporation' accepts as collateral from a debtor other stock of the same company, and subsequently the entire value of the stock is destroyed in consequence of a change in the business made by the directors prior to the pledge, the bank may recover its debts from the debtor, although it could have prevented the change in business, but honestly failed to do so.</p>