Union Bank v. Federal Deposit Ins. Corp.

OPINION

A judgment debtor, John Anderson, pledged his shares of Cedar Development Company stock to Eureka Bank to secure payment of the bank’s judgment against him. Union Bank, a third-party judgment creditor, sought to galrnish the rights in the pledged stock retained by Anderson. At issue before us is whether Union Bank may garnish Anderson’s rights in the stock absent proof that surplus value exists over and above the amount of the debt for which the stock is collateral as of the date of garnishment.

In the district court, Union Bank’s attempt to garnish Anderson’s rights in the stock was…