Peoples National Bank of NJ v. Fowler

The opinion of the court was delivered by

Schreiber, J.

Is an owner of stock, which had been transmitted to a bank as collateral security for a loan to a third person, entitled to the return of the stock because in making the loan the bank violated the federal margin requirements of Regulation U, 12 C. F. R. § 221.1 et seq. (1976), and the usury laws of New Jersey, N. J. S. A. 31:1-1 et seq? This issue arose in the context of an action by the Peoples Fational Bank of New Jersey (PNB) against John B. Fowler, Jr. on a note in the face amount of $350,000, secured by 24,013 shares of common stock…