Supplementary Proceedings Claude Neon, Inc. v. Birrell

HERLANDS, District Judge.

Unless the United States Marshal levying by execution on a judgment-debtor’s property obtains physical possession of the debtor’s corporate stock certificate, the levy is ineffective as against a bona fide purchaser for value of the certificate to whom the duly endorsed certificate has been regularly delivered in the normal course of business. Under the stated circumstances, the levy does not invalidate the purchaser’s title notwithstanding that the stock represented by the certificate had been purchased and the certificate delivered after the date when the execution…