Reed v. Cramb
Appellate Court of Illinois
Appeal from the Circuit Court of Bureau County; the Hon. Geoege W. Stipp, Judge, presiding. Statement by Lacey, J. This was a bill in equity by appellees against appellants and Henry C. Reed, seeking to foreclose a lien against fifty shares of the capital stock of the Dime Savings Bank, of $100 each, which lien was created byway of pledge by William K. Reed, appellant, to secure the notes of H. C. Reed to the amount of some $3,300, and was substituted in the hands of Levi…
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Appeal from the Circuit Court of Bureau County; the Hon. Geoege W. Stipp, Judge, presiding. Statement by Lacey, J. This was a bill in equity by appellees against appellants and Henry C. Reed, seeking to foreclose a lien against fifty shares of the capital stock of the Dime Savings Bank, of $100 each, which lien was created byway of pledge by William K. Reed, appellant, to secure the notes of H. C. Reed to the amount of some $3,300, and was substituted in the hands of Levi Kelsey, the father of appellees, who bequeathed the notes to them. The stock in question was placed in Levi Kelsey’s hands…
1Opinion of the CourtLacey, J.
It can not be doubted if a principal debtor place collateral securities in the hands of his creditor holding his promissory notes that no renewal of the notes or change of the contract between the parties without mentioning the col-laterals would have the effect to release such collaterals, but we understand the law to be as well settled, that in case the principal debtor places collaterals in the hands of his debtors holding his note belonging to a third party who has simply loaned him the property to be pledged as collateral, and the creditor has notice of such fact, that such third party…
2Cases cited5 opinions
- The Bank of Albion v. . BurnsNew York Court of Appeals · 1871
- Rowan v. Sharps' Rifle Manufacturing Co.Supreme Court of Connecticut · 1865
- Smith v. . TownsendNew York Court of Appeals · 1862
- Burnap v. . National Bank of PotsdamNew York Court of Appeals · 1884
- Stull v. HanceIllinois Supreme Court · 1871
3Cited by2 opinions
- Thompson v. Metropolitan Building Co.Washington Supreme Court · 1917
- Home National Bank v. Estate of WatermanAppellate Court of Illinois · 1889