Nelson v. . Eaton

The Atlas Mutual Insurance Company was authorized "to negotiate its promissory notes for the purpose of paying claims or otherwise, in the course of its business." (Laws of 1842, p. 263, § 12; Laws of 1843, p. 69, § 8.) It therefore had the right to transfer the defendant's note to the plaintiffs, as collateral security for those loaned to it, and placed in the hands of the plaintiffs for its benefit.

The statements that the company deposited with, and transferred the defendant's note to, the plaintiffs as its trustees and the trustees of the sixteen persons and firms named, who had loaned it…