RECENT CASES.

This article presents various court cases. In one of the cases, the superintendent of state banks, acting as receiver for an insolvent bank, presented a claim against the estate of an insolvent stockholder for the amount of the latter's statutory liability for obligations of the bank. The stockholder's trustee in bankruptcy sought to set off the amount of a note of the bank held by the stockholder. In another case, the defendant corporation issued to A $6000 in bonds secured by a mortgage on its property as collateral for a loan of $1500 and a prior debt of $500. In pursuance of authority given to him in case of default. A, after sending notice to the corporation, sold the bonds to the plaintiff for $2400. This was the total amount of A's claims against the defendant, with accrued interest. The plaintiff had full knowledge of the circumstances under which the bonds had been issued. In this suit to foreclose the mortgage deed of trust, the trial court limited the plaintiff's claim to $2400 with interest, instead of the face value of the bonds with interest. The plaintiff appealed. Held, that a purchaser with notice of corporate bonds pledged at a discount can recover only what he has paid for them.