Hinkley Co. v. Gerlinger Electric Steel Casting Co.

It is contended by the plaintiff bank that the transactions through which the bank received the bonds constituted an ordinary pledge of the bonds as security for the note of the corporation at the time existing and for all future obligations of the corporation to the bank, whether the latter should arise directly by loans evidenced by notes or indirectly by discounting the corporation bills receivable or other paper; and by the receiver and other bondholders that the transaction was not a pledge, and that the bonds could be used only for sale by the corporation and the proceeds applied in…