Advisability of Registering Negotiable Coupon Bonds. printed upon it blanks, to be filled in by the municipal authorities, so as to render the bond a registered one, at the request of the holder. Just what effect this mode of regis tration would have upon the rights of a bona fide holder has not been, so far as the writer knows, decided, but he is of the opinion that the registration, since the fact would appear on the bond, would be notice to all purchasers." (Simonton, Municipal Bonds, sec. 1115). This refers to municipal bonds, but the same is true of private corporation bonds. While there are not many decisions involving the point of registry, it seems that the learned writer is correct, and that this form of regis try gives to a bond the full effect of a bond originally issued as registered and nonnegotiable. Not only is such bond not negotiable, but it can usually be validly transferred only on the books of the corpor ation issuing it or by its transfer agent.1 Registration further has the effect of subjecting the bond to the claims of third parties. The purchaser of a registered bond takes it subject to all the equities against prior holders.2 Registered bonds are likewise subject to the results of the doctrine of Us pcndcns, and the subsequent holder takes subject to all prior judgments and attachments. The negotiability of bonds, as of other negotiable instruments, may be destroyed by extran eous stipulations in it, but it is to be noted that a provision in a bond by which it may be registered does not of itself have this effect. It is only upon exercise of the power that the bond loses its negotiable character/ It is also to be noted that a registered bond may be made negotiable by filling up 1 Scollans т. Rollins, '73 Ma s. 275 (originally regis tered bonds); Lf-ii'is on ßjn /s an l Stocks, 1 58.
- Cronin v. Patrick Com >any, 4 I [lights 428 (U. S.
Circuit Court.) 3 Jones он Cor/inra'e finnr/s an' Afortgeges, sec. 192; Savannah and M. Railroad r. I- ma te-. 62 Ala., 555.
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the form on the back with the name of the assignee in blank, if such transaction is prop erly entered on the books of the company. Such are the general effects of registra tion. In certain specific cases, registration has a very beneficial effect for the person entitled to the bond. Л conspicuous in stance of this is where the registered bond is destroyed. It has been pointed out that in such case the holder of a negotiable bond is put to great inconvenience to gain inade quate protection. Although there are cases where a duplicate for a registered bond that has been destroyed is refused by the court,4 it is the general rule by decision and statute, that a duplicate will be issued without such strict proof of loss as it required where the bond is negotiable, and frequently without the requirement of any indemnity bond.5 The Revised Statutes of the United States provide for an indemnity bond of twice the value of the principal and future interest of the destroyed bond, if negotiable, while if the bond destroyed is registered, the penal sum of the indemnity bond is required to be only equal to the amount of the missing bond and the interest.1' Where registered coupon railroad bonds were destroyed by the burning of a steam ship, the railroad was forced to issue dupli cates in the absence of statute, upon the giv ing of an indemnity bond only a little greater than the value of the destroyed bonds.7 In the case of loss, or theft, of registered bonds, the owner of the bonds is fully pro tected in his title. It is of no value in the hands of the finder or thief, and he cannot sell it. The purchaser cannot recover on it, because it is not negotiable. The owner re tains title precisely as he does in any case
- Hoddy?•. Hoard, 2 Ind. (Carter), 474.
! Nagel г: Mignot, 8 Mart., 488. 6 Revised Statutes of United .States, sees 3702-5. "Rogers v. Chicago, etc., Railroad. 6 Abb. N. Cas (N. V.), 253.
