In re Tracy

Citations

• 191 F. 810
• 112 C.C.A. 324
• 1911 U.S. App. LEXIS 4992

Syllabus

<p>Bbokebs (§ 35*) — Secubities Pledged by Customer — Right to Rehypothecate.</p> <p>A broker, with whom a customer has deposited securities to margin future purchases and sales, has no authority to pledge such securities, unless he has made purchases or sales for the customer on which he is entitled to protection; and such a pledge, when no such purchase or sale has been made which could subject the broker to a loss, is a wrongful conversion.</p> <p>[Ed. Note. — For other cases, see Brokers, Cent. Dig. § 27; Dec. Dig. § 35.*] .</p>