185 A. 292 | Pa. | 1936
Argued April 2, 1936. Appellant complains that binding instructions for defendant were given in his suit for conversion of certain bonds. He had pledged them to Allentown Trust Company as collateral for a loan to him.
The Allentown Trust Company was indebted to defendant on collateral notes specifically providing that, on demand, the debtor would deliver additional collateral to maintain a stipulated margin. When the value of the collateral had shrunk below the agreed margin, defendant called upon the debtor to perform its agreement by adding to the pledge, for the performance of which agreement it had already received the consideration. The trust company complied by delivering the bonds involved. Later, the trust company failed, and its notes were dishonored. Defendant then sold the collateral as authorized by the notes. The amount received for the bonds was their market value, and was credited to the receiver of the trust company in payment of its notes. The receiver, in turn, credited plaintiff's account with the amount received for the bonds. They were coupon bonds, payable to bearer, which, as has been said, defendant received for value without notice. CompareShattuck v. American Cement Co.,
Plaintiff has sustained no loss; the conversion, if any, was innocent, and resulted in his account receiving credit for the market value of the bonds: see Penna. Co., etc., v. P. G. N.R. R. Co.,
Judgment affirmed. *347