Peoples Bank v. Lamar County Bank

Citations

• 107 Miss. 852
• 66 So. 219

Syllabus

<p>Bank and Banking. Ownership of stock. Transfer. Conversion.</p> <p>Under Code 1906, section 5005, providing that no corporation shall purchase or own the capital stock, or any part thereof, of any other corporation, if such other corporation be engaged in the same kind of business and be a competitor therein, and that any corporation offending against this provision shall forfeit its charter if a domestic corporation, and if a foreign corporation shall forfeit its right to do business in the state, a bank is prohibited from accepting a transfer of stock in another bank, with which it was in competition, in payment of the indebtedness of a customer; and such transfer being illegal, the transferee, could not recover against the bank whose stock was so transferred for conversion thereof in refusing to transfer the same on its books to the transferee bank.</p> <p>ON SUGGESTION OP ERROR.</p> <p>1. Bank and Banking. Ownership of stock in other hanks. Transfer. YaUdity.</p> <p>Under Code 1906, section 5005, prohibiting the acquisition of stock by one of two competing corporations in the other, is a mere ultra vires act and of which the state only could complain.</p> <p>2. Bank and Banking. Transfer of stock. Bona fide purchaser without notice.</p> <p>A corporation by issuing a second certificate of stock without surrender and cancellation of the first, becomes liable to any subsequent purchaser for value of the first, who was without notice of the issuance of the second.</p> <p>3. Corporation. Transfer of stock. Bona fide purchaser without notice.</p> <p>A corporation accepting corporate stock in payment of a debt due it to the extent 'of the value of the stock is a purchaser for value to the same extent as if it had paid money.</p>