Newman

A jury convicted defendant Nathan Newman of grand theft. (Pen. Code, § 487, subd. 1.) He was sentenced to prison.

*428 Facts

In June 1972, defendant, a free lance tax accountant, obtained a loan of $85,000 from the Santa Clarita National Bank. He signed a security agreement in which he pledged stock, including 16,067 shares of Enterprise Fund stock with a then market value of $123,000. He gave the bank a single certificate for the Enterprise shares. The security agreement gave the bank a security interest in, and possession of, the stock certificate.

The first quarterly payment of $5,000 was due on September 1, 1972. In late August, defendant asked the bank for permission to sell 2,067 shares of the Enterprise stock; the remaining shares would be reissued to the bank.

On September 5, the bank sent Enterprise Fund the stock certificate, with an authorizing letter from defendant, instructing Enterprise to sell 2,067 shares and to reissue a certificate for 14,000 shares. Enterprise sent the bank a check for $14,365, which represented the proceeds of the liquidated shares. This amount was credited to defendant’s account. However, the stock transfer agent for Enterprise…