Graham v. Young Et Ux

Rodney, J.,

delivering the opinion of the Court:

This case calls for a consideration of Section 36 of the Corporation Law (Section 1950 of the Revised Code of 1915).

It is apparent that the Statute covers two somewhat distinguishable matters and the history of the adoption of the section makes this more clear. The section covers:

1. Loans which are forbidden to be made by the corporation ;(a) Loans to any officer of the corporation;(b) Loans make to any stockholder upon the security of the stock of the corporation.

2. The denial of the right to take as security for a debt a lien upon any part of…