A TREATISE ON THE LAW OF COLLATERAL SECURITIES AS APPLIED TO NEGOTIABLE, QUASI-NEGOTIABLE, AND NON-NEGOTIABLE CHOSES IN ACTION. BY WM. COLEBROOKE. CHICAGO. CALLAGHAN & COMPANY. Entered according to Act of Congress, in the year 1883, by WILLIAM COLEBROOKE, In the office of the Librarian of Congress, at Washington R, R. DONNELLEY & SONS, PRINTERS, CHICAGO. PREFACE. The law and principles of collateral security, given for loans of money, discounts of bills of exchange or promissory notes, and other valuable considerations, have become a recognised branch of commercial jurisprudence. Occasional references to the subject are found in the text books, and the contract of pawn or pledge, as applied to corporeal personal property, is properly regarded as a division of the law of bailment. Different and more important questions arise, however, from the use of collateral securities, the term itself implying the existence of a principal promise or obligation of the borrower. The position of the indorsee of negotiable paper, receiving the same. as collateral security, as a holder for value, in the usual course of business, and his rights, duties, and liabilities; and of the holder or indorsee of documents of title, such as certificates of stock, bills of lading, warehouse receipts, and other choses in action, as collateral; and of the borrower depositing such collateral security, require, for their proper consideration, a treatise exclusively devoted thereto. endeavor has been made in this work, with more or less success, as the reader may judge, to cover the important questions indicated. An The natural division of collateral securities has been followed by an arrangement thereof into three general classes, including first, negotiable instruments, bills of exchange and promissory notes, bonds and coupons, notes (and bonds) and mortgage securities, and the rights, duties, and liabilities of the holder, creditor, surety, accommodation acceptor the principal. or indorser, or guarantor, holding collateral securities from The second, documents of title, which are, by commercial usage, quasi-negotiable, certificates of stock, bills of lading, and warehouse receipts; and the rights of stock and other brokers, dealing under the usages of Exchanges, with the collateral stocks and other securities of their customer, and of the factor as pledgor. The third class includes the large order of non-negotiable choses in action and equitable assignments of funds available as collateral. The present work presents a complete citation of cases (over four thousand in number) directly relating to the law of collateral security, and including the latest published in the American and English reports. Chicago, Nov. 15, 1883. WM. COLEBROOKE. CONTENTS. NEGOTIABLE COLLATERAL SECURITIES. General statement as to and definitions of "Collateral security," and The act of pledge by indorsement and delivery-Indorsement for special purpose - Delivery -Possession by pledgee or by third person-Ex- Upon present and future advances—And for antecedent debt-The question of valuable consideration-The rule as to antecedent debt, without ACCOMMODATION PAPER AS COLLATERAL. The favor shown to its use as collateral security-Its pledge after maturity |