Mapleton Bank v. Standrod

Citations

• 8 Idaho 740
• 71 P. 119
• 67 L.R.A. 656
• 1902 Ida. LEXIS 70

Syllabus

<p>Corporations — Stock—Transfer—Pledge.—A written transfer of a certificate of shares of stock in a corporation, made in good faith, and for value, and possession taken, thereof as a pledge for the payment of a private debt of the assignor, and the transfer not entered on the proper book of the corporation, has preference over a subsequent attachment thereof in favor of a creditor of the assignor or transferrer of the stock.</p> <p>Transfers of Stock — Books of Corporation. — That provision of section 2611 of the Revised Statutes which provides that a transfer of stock, made by indorsement, and delivery of the certificate is not valid, except between the parties thereto until the same is entered upon the books of the corporation, was not intended as a protection to creditors of a stockholder, but was intended to protect the corporation, its members and its creditors.</p> <p>Pledged Stock — Attaching Creditor. — Where stock has been pledged and transferred by indorsement, and delivery as security for the payment of a debt and transfer not entered on the books of the corporation, and is- thereafter attached at the instance of a creditor of the stockholder, such attachment is valid only against the interest of the assignor therein after the debt has been paid.</p> <p>(Syllabus by the court.)</p>