Bay City Bank v. St. Louis Motor Sales Co.

Peter C. Pardee owned 25 shares of the capital stock of the St. Louis Motor Sales Company, a Michigan corporation. December 31, 1925, he borrowed $8,900 from the Farmers State Savings Bank of Bay City, upon his demand note, secured by pledge of his shares of stock. The bank closed its doors, and February 17, 1927, its assets, including the Pardee note and pledge, were sold to plaintiff. February 24, 1926, the St. Louis Motor Sales Company sold its business and in the course of voluntary liquidation on March 8, 1926, issued its check for $2,500 for “capital stock,” payable to Mr. Pardee, and…