Opinion ID: 1785565
Heading Depth: 3
Heading Rank: 2

Heading: Stock Power

Text: In the stock power, Tracey appointed Pace as his lawful attorney-in-fact . . . to sell, assign, transfer and make over all or any part of [Gallop stock pledged by Tracey] . . . in the event of a default by [Tracey] or Gallop, Inc. in the performance of the terms and conditions of the Settlement Agreement or the Promissory Note [evidencing the $47,500 loan] or [the] Stock Pledge Agreement. On its face, this instrument authorized Pace to take necessary administerial acts attendant to transferring the Gallop stock pledged by Tracey if Pace acquired that stock as the result of a default by Gallop or Tracey in their obligations in other settlement documents. However, we have not located, nor have we been directed to, any record maintained by Pace documenting that by March 13, 1997, Pace had actually exercised its rights under the stock power to transfer control of the Gallop stock from Tracey to itself or to a third party. Further, there was no provision in the stock power that, on the face of that instrument alone, granted Pace any extraordinary right to divest Tracey's authority to act on behalf of Gallop in the event of a default by Gallop or Tracey. Indeed, as noted above, the only evidence of Pace's intent to exercise control over the Gallop stock was its attempt to purchase that stock at its March 21, 1997, foreclosure salean event that purportedly occurred eight days after the March 13, 1997, assignment.