Citizens' Nat. Bank v. Santa Rita Hotel Co.

Santa Rita Hotel Company is a corporation organized under the laws of the state of Arizona, and during the period covered by the transactions here involved one Huffman was its president and one Mets its secretary. On July 5, 1923, Mets borrowed from the Citizens’ National Bank of Los Angeles the sum of $5,000, and pledged two certificates of stock, standing in his name, in the hotel company, as collateral security for the payment of the loan. .The certificates, for 50 shares each, were signed by the secretary, with the corporate seal affixed, and purported to be signed by the president. November 5,1923, the hotel company notified the bank that the two pledged certificates were not valid or genuine. The bank thereafter made demand that the hotel company, through its proper officers, transfer the certificates on its books, or execute and deliver to the bank other and genuine certificates representing capital stock in the hotel company in the same amount. This demand was refused and the present suit followed.

The relief sought was the transfer of the stock on the books of the hotel company, the issuance and delivery of other and genuine certificates in the same amount upon surrender…