Joliet Iron & Steel Co. v. Scioto Fire Brick Co.

Citations

• 82 Ill. 548

Syllabus

<p>1. Pledge of commercial paper, or bonds payable upon condition—rights and duty of pledgee. The pledge of commercial paper, as collateral security for the payment of a debt, does not, in the absence of a special power for that purpose, authorize the pledgee to sell the security so pledged, upon default of payment, either at public or private sale.</p> <p>. 2. The pledgee of commercial paper, bonds, mortgages and promissory notes held as collateral security for the payment of a debt, is bound to hold and collect the same as they become due, and apply the net proceeds to the payment of the debt so secured.</p> <p>3. The same rule will apply in the case of bonds payable on condition, which are pledged as collateral security.</p>