Spreckels v. Nevada Bank

Citations

• 113 Cal. 272
• 45 P. 329
• 1896 Cal. LEXIS 774

Syllabus

<p>Pledge—Stock of Corporation—Transfer upon Books—Injunction.— A pledgee of the stock of a corporation, when the contract is silent upon the subject, has no right to have the stock transferred to his name before maturity of the debt; and an injunction will lie at suit of the pledgor to prevent such transfer.</p> <p>Id.—Validity of Pledge—Entry upon Books—Protection of Pledgor— Rights of Pledgor.—A transfer of stock upon the hooks of the corporation is not essential to the creation of a valid pledge of the stock, but the pledgee has the right to cause a proper entry of the transaction between himself and his pledgor to be entered upon the hooks of the corporation for his protection, under section 324 of the Civil Code, though he is not authorized to divest the pledgor of the rights incident to his ownership of the pledge, by surrender and cancellation of the pledged certificate, and the issuance of a new certificate in the name of the •pledgee.</p>