Smith v. Shippers' Oil Co.

Citations

• 120 La. 640
• 45 So. 533
• 1907 La. LEXIS 672

Syllabus

<p>1. Pledges — Sam by Pledgee — Right to.</p> <p>A pledgee cannot lawfully sell the pledged property, save in satisfaction of the debt which it is intended to secure; nor can a third person, with knowledge of the facts, acquire title to such property when sold to pay another debt.</p> <p>[Ed. Note. — For cases in point, see Cent. Dig. vol. 4b, Pledges, §§ 99-101, 152.]</p> <p>2. Same — Sale of Property — Payment of Note Secueed.</p> <p>When the holder of a note, secured by the pledge of property belonging to the indorser, sells such property in satisfaction of the debt due him, and realizes sufficient for the purpose, the note is paid, the indorser becomes subro-gated to the rights of the holder, and the latter cannot lawfully put the note in circulation by indorsing it, without recourse or otherwise, to the purchaser of the pledged property.</p> <p>3. Same — Sale of Collateral — Condition Peeoedent.</p> <p>Where a note, payable on demand at the payee bank, is secured by a pledge of collaterals, which the bank is authorized to sell on the failure of the maker to respond to a call for additional security and after demand for payment, the bank has no right to sell the collaterals unless such call and demand have first been made.</p> <p>[Ed. Note. — Eor cases in point, see Cent. Dig. vol. 40, Pledges, §§ 152-159.]</p> <p>4. Same.</p> <p>Considered without reference to the stipulation concerning the call for additional security, the pledgor in a contract, reading as here below and securing a demand note payable at the bank of the payee and holder, does not waive his right to actual notice, by demand for payment or otherwise, of the intention of the pledgee to sell the pledged property:</p> <p>“This note is secured by pledge of the securities mentioned on the reverse hereof, with the right to call for additional security, should the same decline, and, on failure to respond, this obligation shall ■ be deemed to become due and payable, on demand, with the full power and a