Rozet v. McClellan

Citations

• 48 Ill. 345

Syllabus

<p>1. Pledge—sale on default. Where a party deposits the stock of an incorporated company, as collateral security to a promissory note, with power of sale by the pledgee, in case of default in payment, after a demand and notice, he may sell the stock and apply the proceeds to the discharge of the note. But the pledgee is not bound to sell, and, on failing to do so, he is not liable for the loss sustained by depreciation in the value of the stock which may occur after the default. The pledgor should have redeemed, by sale of the stock or otherwise, the general property still remaining in him with the right of redemption.</p> <p>2. Note—consideration. Where a note was given, and the payee gave to the maker his check on a bank for the amount, and the drawee endors es it, and the holders deposit it to their credit in the bank, the maker of the note will not be permitted to show that the holders of the check had received confederate money from the bank to prove a failure of consideration of the notes.</p>