Powell v. Blair

Citations

• 133 Pa. 550
• 19 A. 559
• 1890 Pa. LEXIS 933

Syllabus

<p>(a) A corporation executed and delivered a mortgage, the money raised thereon being admittedly applied to discharge a purchase-money indebtedness on the mortgaged property, the mortgagee receiving, moreover, certain shares of stock of the company with the note of its officers, as additional security for the loan.</p> <p>1. As the mortgage did not increase the indebtedness of the corporation, it was not invalid because violative of § 7, article XVI. of the constitution, prohibiting such increase without the consent of the shareholders; and, in the absence of fraud, the mortgagee had a right to all the security the company or its officers were willing to give him.</p>