Capron v. Traders' National Bank

DENNIS, J.—

I am of the opinion that the bank, as pledgee, is entitled to be treated as a hona fide purchaser for value, only to the extent of its present advances on the shares of stock in question, and that its claim to the excess proceeds of the sale of these shares must yield to the claim of Capron, the true owner; although the contract of hypothecation did in terms require that the pledge should stand not only for the present advance, but for the previous loans. This seems to be supported by the authorities; see Zucker vs. Karpeless, 88 Mich., 413; Neaver vs. Borden, 49 N. Y., 286, and…