O'Neil v. Jamieson

Citations

• 236 Pa. 487
• 84 A. 911
• 1912 Pa. LEXIS 783

Syllabus

<p>Promissory notes — Collateral — Application of collateral — Contract.</p> <p>Where a person holds stock as collateral security for the payment of a promissory note, under an agreement by which on default on the note, he may either sell the stock after public notice, or keep it upon delivering or returning the note to the makers, such person, after a default on the note, is confined to the two alternative rights which he has under the agreement. He cannot, upon default, have the stock transferred to his own name and at the same time retain the note in his possession. If he attempts to do so, the makers of the note or their assignee have a right, for six years from the maturity of the note, to demand the return of the stock upon payment of the amount due upon the note.</p>