The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1895-07-19
AGAINST MIR. HARRISON.
The Court 80 Decides I'm the matter of the
Assignment of Savings Bank stock "a
Him by Geo. r.. Breck.

The Court 80 Decides I'm the matter of the
Assignment of Savings Bank stock 20
Him by Geo. r.. Breck.
The following is an abstract of the
opinion of Judge Buck in the case of
Albert Harrison VS.. the estate of Geo. +.
Breck and the Paw Paw Savings Bank
The complainant filed his bill in this
court praying for decree of foreclos-
ure of an equitable lien which he holds
upon ten shares of the capital stock of
the Savings Bank. issued TO Geo. +.
Breck and which were assigned To him
to secure the payment of note of said
| Breck for the sum of 1865, dated June 10,
| 1893, and due one year after date. Com
plainant claims that at the time the
note was given and the certificate as
signed to him, the bank had notice
that such assignment haG been made.
His own testimony supports this claim.
Mr.. Free, the cashier of the bank, denies
this and asserts that he had no notice of
such assignment until after the death
of Mr.. Breck. The character of both
these witnesses is so unquestionable
that, if a decision of the question of no.
ice were necessary, it would impose on
the court task of no little delicacy and
difficulty.
But the statutes invalidate all trans
fers of stock in a bank organized under
the laws of This state, without the con-
sent of the directors, so long as the
stakeholder is indebted TO the bank,
and there is no contradiction of the
proof that at the time of the assignment,
Mr.. Breck was indebted to the bank in
the sum of about $40 900. Compartments
counsel insists that all the Indebtedness
then due the bank from Mr. Breck was
afterwards paid and that as to any sub
sequent Indebtedness the lien of the
complainant should have priority ac-
cording TO cases cited. But the testi-
mony does not bear out this claim.
According to the testimony of Mr.. Free,
Mr. Breck on the tenth day of June,
1898, owed the bank about $1,000,
which afterward, and during the life
time of Mr.. Brock, was reduced to 81,
600, but it was substantially the same
debt, for which from time to time, new
notes had been given and the old notes
taken up, as was the custom of the bank.
1t is principle of equity too well
established To require the citation OF
authorities, that a note or mortgage or
other evidence of debt given in place of
a prior instrument of the same charac-
ter, works no change in the rights or Ii
abilities Of the parties to such instru
ments, the debt being the principal
thing and the evidence of Indebtedness
mere incident. 1t follows that the
lien of the complainant must be post
poncd to that of the bank.
A decree may be drafted for a sale of
the certificate TO satisfy the amount due
on the note, such sale To he subject To-
the lien of the bank for all moneys
due the bank from Mr.. Brock at the
time of his deceaSe The bank is en-
titled To costs, but no costs will be
awarded to the estate as the administra-
tor was a proper party to the suit, but
no claim can be established, except in
a proceeding before commissioners on
claims.
The effect of the opinion of the court
is to place Mr.. Harrison in the same POI
sition as the unsecured creditors of the
estate, as the pledged stock is entirely
inadequate To satisfy the claim of the
bank and nothing will remain to apply
on his claim.
The case will not be appealed to a
higher court.