—— Part than
the
pledgor
III.
Business of Banking.
who have
beneficial
interests therein
or,
(s),
mast have acquired a present
failing registration, the transferee
and unconditional right to be registered affected with notice of the prior equitable title {t). absolute
Registration does inoperative (a).
637
not perfect a
transfer
which
before he
is
Sect.
18..
Securities fo^
Ad vanc es. is
in
itself
1284. If a transfer to a banker prove to have been forged, the Forged banker has no title to the stock or shares, his name will be ^^^^^^^^sremoved from the register and that of the original holder restored, and he will be liable to refund to the company all dividends received. If the banker has parted with the stock or shares, and his transferee Banker's has been registered and had certificates issued to him, the banker is liability, liable to indemnify the company, who are estopped from disputing the title of such transferee. The company would be obliged to restore the original holders to the register and their rights, possibly having to buy stock or shares in order to do so. In the latter case the price of the stock purchased, if higher than at the date of the original holder's name being removed from the register, together with back dividends since that date, would be the measure of the
banker's liability {h). The liability being based on indemnity, though the sending in the transfer for registration by the company may also import warranty, the cause of action against the banker does not arise until the company is compelled to reinstate the original holder and the banker may accordingly be sued any time within six years of that date (c). His having retransferred the shares is of Neither is it any defence that the company on course immaterial. registration of the transfer issued certificates to him (d). Sub-Sect.
6.
Policies
of Life Assurance.
1285. A banker may take out a policy person indebted to him. ^
of
assurance
(e)
on the
life
of a
A
policy on his own life effected by the debtor may be Notice of the assignment deposited as security for advances. If no notice is given, should be given to the company.
1286.
Shropshire Union Railways
(s)
496.
and Canal
Go. v.
The Queen (1875), L. E. 7 H. L.
—
Walker (1885), 11 App. Cas. 20, at pp. 29 41 North Western Bank, [1891] 2 Cli. 599; Ireland y. Hart, [1902] 1 Ch. No Court has ever defined what constitutes such right, and it 522, at p. 529. would not be safe to rely on its existence apart from registration. (a) Powell V. London and Provincial Bank, [1893] 2 Ch. 555, at p. 566. (t)
Societe Generale de Paris v.
Moore
Y.
Corporation of Sheffield v. Barclay (k Co., [1905] A. C. 392. Compare Bank v. Cutler, [1907] 1 K. B. 889. (c) Corporation of Sheffield v. Barclay cfc Co., supra. (d) Certificates had been issued to the banker in Corporation of Sheffield v. Barclay <& Co, supra. Compare A.-G. v. Odell, [1906] 2 Ch. 47. The banker cannot claim an estoppel produced by his own misrepresentation. As to whether the same liabilities would attach to a banker sending in a forged transfer on behalf of a customer, see Starkey v. Bank of England, [1903] A. C. 114. (e) For the general law of life assurance, see title Insurance. (&)
of
England
Statute of
Banker's insurable interest debtor's
m life,
^^J'^ofJcies^
