Ensley Mortgage & Loan Co. v. Chadwick

The case may be briefly stated thus: An ordinary banking corporation in course of business becomes the equitable owner of stock in another corporation. This corporation becomes a depositor in the bank. The bank fails and is taken over for liquidation by the banking department. Has the corporation a lien on the stock held by the bank, under ■Code, § 7000, enforceable in equity as security for the amount of its deposit in the bank at the time of failure?

Section 7000 of the Code provides: “All such corporations have a lien on the shares of its stockholders, for any debt or liability incurred to…