Westinghouse v. German National Bank

Citations

• 188 Pa. 630
• 41 A. 734
• 1898 Pa. LEXIS 659

Syllabus

<p>Broker — Rehypothecation of stock — Notice.</p> <p>Where an owner of stock executes upon the back of the certificate an absolute power to sell or transfer, and delivers the certificate to a broker as collateral security to protect the broker in carrying other stock, and the broker rehypothecates the stock with a bank which has full knowledge of the ownership of the stock, and of the broker’s lack of authority to re-pledge it, the bank cannot retain the stock as against the true owner.</p>