Citizens' Nat. Bank v. Santa Rita Hotel Co.

RUDKIN, Circuit Judge.

Santa Rita Hotel Company is a corporation organized under the laws of the state of Arizona, and during the period covered by the transactions here involved one Huffman was its president and one Mets its secretary. On July 5, 1923, Mets borrowed from the Citizens’ National Bank of Los Angeles the sum of $5,000, and pledged two certificates of stock, standing in his name, in the hotel company, as collateral security for the payment of the loan. .The certificates, for 50 shares each, were signed by the secretary, with the corporate seal affixed, and purported to be signed…