Salinas City Bank v. Graves

Citations

• 79 Cal. 192
• 21 P. 732
• 1889 Cal. LEXIS 696

Syllabus

<p>Pledge—Possession by Pledgor — Attachment.—When pledged property is allowed to go into the possession of the pledgor, it is subject to attachment by his creditors.</p> <p>Id. — Collateral Security—Warehouse Receipt—Loss of Lien.— When a mill company agrees with a hank to cash its drafts for grain purchased, and transfers warehouse receipts for the grain to the bank as collateral security for the repayment of its advances, the bank has a lien dependent on possession, and while the grain remains in the warehouses of third parties and the hank holds the receipts, it has sufficient possession to keep its lien valid; but when the receipts are indorsed and delivered, together with the grain, to the mill company, in order that it may crush the grain, the lien of the bank as against creditors of the mill company is extinguished.</p> <p>Id.—Assignment of Non-negotiable Debt—Notice—Attachment of Pledged Property —Estoppel. —After notice of the assignment of a debt given to the debtor and to his pledgee, the assignee cannot be estopped or compromised by any subsequent act of the assignor in consenting to the possession of the pledged property by the pledgor, so as to bar an attachment of the property in the hands of the debtor, by the assignee of the debt. The fact that the indebtedness assigned was not evidenced by a negotiable instrument is immaterial to the rights of the assignee as against the pledgor under such attachment.</p>