Court of Appeals of Virginia.

161

Leavell v. Robinson.(Absent Coalter, J.)

1830 .

May.

Question, whether a transfer of bank stock was, under all circumstances oftransaction, a security or indemnity provided for the transferree, andtherefore redeemable; or a conditional sale, which became absolute bynon-performance of the condition ?

This was a bill exhibited in the superiour court of chan-cery of Fredericksburg , by Robinson against Leavell, pray-ing to redeem eight shares of stock of the Farmers’ Bankof Virginia, which Robinson had previously transferred toLeavell.

The case was thus : Robinson, being possessed of theeight shares of stock, had obtained from the office of thebank at Fredericksburg , a loan of 560 dollars, on the creditof the stock, that is, on a pledge thereof, by way of security;he executed what is called a stock note for the debt, in theusual form. Stock having afterwards fallen in value, andRobinson’s personal security not being good at the bank, hewas required to give additional security, as a condition ofthe continuance of the accommodation ; which he accom-plished by transferring the stock to Johnson, who thereuponpledged the same stock, and gave his own stock note, forthe debt, in lieu of that which had been before given by Ro-binson. This was done by Johnson for Robinson’s accom-modation. Some differences having subsequently arisenbetween Robinson and Johnson, it became materially desi-rable to them, that Johnson should be relieved from the re-sponsibility he had thus incurred for Robinson. The bank,however, was still unwilling to take a pledge of the stock,and Robinson’s own stock note, for the debt, without somefarther security; and he was, therefore, compelled to findsome other friend to take Johnson’s place. He applied toLeavell. Leavell was very reluctant to involve himself inthis responsibility : but he was at length persuaded to takeVol. ii. 21