the borrower not to derogate from his own grant (a), and if he is enabled to violate that covenant through the negligence of other persons, they, and not the subsequent incumbrancer, should bear the loss (b).

The pawnee will have a remedy. by marshalling his securities when such a course is necessary to give him the benefit of his security. Thus if several property, and also joint and several property, be pledged with the same person, the pawnee can apply the proceeds of each class of pawns, in the way which will tend to give him the benefit of his security (c).

A pawnee may sometimes retain and enforce his security, though received from a pawnor who had only an apparent title thereto, if the circumstances were such as to amount to an express or tacit holding out of the pawnor by the real owners, as a person having authority to pledge. Thus, the pledge of a picture by an executrix after, but without notice to the pledgee of the commencement of an administration suit, was held good (d).

A pawnee of shares whose title has been forfeited by registration, is liable to calls made thereon, but may be entitled to be indemnified by the pawnor (e).

(a) Gerald v. Lewis, L.R. 2 C.P. 305, 36 L.J. 173 C.P., 15 L.T. N.S. 663, 15 W.R. 581. Jeffs v. Day, L.R. 1 Q.B. 372, 35 L.J. 99 Q.B.

(b) The Argentina, L.R. 1 A. & E. 370. Dickson v. Swansea, &c. Railway Coy., L.R. 4 Q.B. 44, 32 L.J. 17 Q.B., 19 L.T. N.S 346, 17 W.R. 51. (c) Exp. Dickson, re Foster, L.R. 20 Eq. 767, 44 L.J. 113 Bk., 32 L.T. N.S. 37, 24 W.R. 221. Rolfe v. Flower, L.R. 1 P.C. 27, 35 L.J. 13 P.C., 14 W.R. 467.

(d) Berry v. Gibbons, L.R. 8 C.A. 747, 42 L.J. 89 Ch., 29 L.T. N.S. 88, 21 W.R. 754.

(e) Re Imperial Mercantile Coy. Lmd., exp. Chapman and Barker, L.R. 3 Eq. 361. Re National Financial Coy., exp. Oriental Commercial Bank, L.R. 3 C.A. 791. Muir v. City of Glasgow Bank, L.R. 4 A.C. 337, 40 L.T.

N.S. 339, 27 W.R. 603.

Apart from the pawnor's right to stop in transitu, or other circumstances justifying a rescission of the contract, a contract to hypothecate [or pledge] may be specifically enforced (a), or damages may be recovered for its breach as for that of any other contract..

The remedies available when pawns have been made by or with Limited or other Companies, do not greatly differ from those against private individuals, always provided that the officers of the Company have not exceeded their authority in the transaction.

A Company may mortgage its property by debentures (6), even when issued to a director at a discount (c), provided the transaction is bona fide, and not in fraud of the Company (d). But it cannot purchase or make advances on its own shares, unless expressly empowered by its Articles of Association (e), in which event, persons dealing with the Company will not be affected by irregularities in the internal management of the Company (f).

A Company as well as an individual may so act as to be estopped from disputing the right or resisting the remedy of adverse claimants, as by issuing share certificates to a bona fide purchaser, on the faith of a forged transfer, accepted and registered at the Company's office (g).

(a) Alliance Bank v. Brown, 34 L.J. 256 Ch. Ranken v. Alfaro, L.R. 5 Ch. D. 786, 46 L.J. 832 Ch. D., 36 L.T. N.S. 529 (in C.A.). (b) Re Regent's Canal Iron Works Coy., L.R. 3 Ch. D. 43, 45 L.J. 620 Ch.D., 35 L.T. N.S. 288, 24 W.R. 687 (in C.A.).

(c) Re Compagnie Generale, L.R. 4 Ch. D. 470, 35 L.T. N.S. 900,
25 W.R. 299.

(d) Re Imperial Land Coy. of Marseilles, exp. Larking, 4 Ch. D. 506, 46 L.J. 235 Ch. D. (in C.A.).

(e) Hope v. International Financial Society, L.R. 4 Ch. D. 327, 46 L.J. 200 Ch. D., 35 L.T. N.S. 924, 25 W.R. 203 (in C.A.).

(f) Re County Life Assurance Coy., L.R. 5 C.A. 288, 39 L.J. 471 Ch. D., 22 L.T. N.S. 537, 18 W.R. 390.

(g) Hall v. Fontino Coy., L.R. 5 Ex. 14, 39 L.J. 93 Ex.

The Court will support dispositions of property by a trading Company [by way of sale or pledge], though made between the dates of the petition, and of the order to wind up, provided the transferee acted bond fide, and in the ordinary course of business (a).

A Company, as well as an individual, may be estopped by its own act or neglect. Thus a shareholder whose shares are registered as fully paid, may give a good title to a transferee, though they have not in fact been paid on (6). And a pledge by directors of the Company's goods, though bad against the Company, may be valid against the directors personally (c).

When notice is necessary to complete a title, the order in which notice is given has the same effect as the order in which advances have been made, for priority of assignment depends upon priority of notice to the assignor's trustees. Thus, when mortgagees of a Life Policy gave no notice of the mortgage to the Office until after the mortgagor's bankruptcy, they retained their security, the trustees in bankruptcy having also failed to give notice until after the mortgagees had given theirs (d). Contra, when the mortgagee took after bankruptcy, but without notice thereof, though the mortgagee gave notice to the office before the trustee in bankruptcy knew of the existence of the policy (e).

Formal notice is usually necessary (f). Casual notice is not sufficient, unless it be acted on (g).

(a) Re Wiltshire Iron Coy., exp. Pearson, 37 L.J. 554 Ch. D., L.R. 3 Ch. 443. (b) Barrow's Case, L.R. 14 Ch. D. 433, 49 L.J. 498 Ch. D.

(c) M'Collin v. Gilpin, L.R. 5 Q.B.D. 390, 44 L.T. N.S. 914, 29 W.R. 408. (d) Re Russell's Policy Trusts, L.R. 15 Eq. 26, 27 L.T. N.S. 706, 21 W.R.97. Re Freshfield's Trusts, 11 Ch. D. 198, 40 L.T. N.S. 57, 27 W.R. 375. (e) Re Bright's Settlement, L.R. 13 Ch. D. 413, 42 L.T. N.S. 508, 28 W.R. 551 (in C.A.).

(f) Re Brown's Trusts, L.R. 5 Eq. 88.

(g) Lloyd v. Banks, L.R. 4 Eq. 222, 3 C.A. 488.

If the pawn be destroyed by fire without default of pawnor or pawnee, the rights and liabilities of the parties remain unaffected (a). Under the Pawnbrokers' Act, 1872, the pawnor has a limited interest in the pawnee's insurance (b). In other cases, it would seem that neither party can claim the benefit of an insurance effected by the other (c).

When a pawnee or other person is sued as a defendant, he may bring into the suit any third party from whom he claims contribution, indemnity, or other remedy over (d), provided the third party has some right which the action would decide (e).

Questions between mortgagees [or pawnees] who are co-defendants, should be raised by counter claim (ƒ).

When goods in the hands of one in the position of a stakeholder, or other person having no interest, or only a limited and undisputed interest in them, become the subject of conflicting claims by other persons, he may obtain relief from adverse claims by Interpleader (g).

Relief will not be granted when the stakeholder, &c., is only threatened with proceedings:-an action must be

(a) Ante, p. 144. (c) Rayner v. Preston, L.R. 14 Ch. D. 297, 43 L.T. N.S. 18, 28 W.R. 808; Poole v. Adams, 12 W.R. 683; Edwards v. West, L.R. 7 Ch. D. 858, 47 L.J. 463 Ch. D., 38 L.T. N.S. 481, 26 W.R. 507; Reynard v. Arnold, L.R. 10 Ch. 386, 23 W.R. 804; Collingridge v. Royal Exchange Insurance Coy., L.R. 3 Q.B.D. 173, 47 L.J. 32 Q.B.D., 37 L.T. N.S. 525, 26 W.R. 112. (d) Judicature Acts, Order XIV., Rules 17, 18.

(b) See ante, pp. 92, 119, 144, Caps. VI. & VII.

(e) Harry v. Davey, L.R. 2 Ch. D. 721, 45 L.J. 697 Ch., 34 L.T. N.S. 842, 24 W.R. 596; Padwick v. Scott, L.R. 2 Ch. D. 736, 45 L.J. 350 Ch., 24 W.R. 723.

(f) Shepheard v. Beane, L.R. 2 Ch. D. 223, 45 L.J. 429 Ch., 24 W.R. 363. Dear v. Sworder, L.R. 4 Ch. D. 476, 46 L.J. 100 Ch., 25 W.R. 124.

(9) 1 & 2 Wm. IV., cap. 58; 1 & 2 Vict., cap. 45; 23 & 24 Vict., cap. 126.

brought against him before the Court will interfere (a). Before the Judicature Acts, the defendant in such an action could not apply for relief before the plaintiff had declared (b), but he can now do so at any time after being served with a writ of summons by one of two or more claimants, and before delivering a defence (c).

The application should be made promptly, and should be supported by affidavit or otherwise, showing that defendant does not claim any interest in the subject matter (d), but that the right is claimed, or supposed to belong to, some third party who has sued, or is expected to sue, for the same; and that [the interpleading] defendant does not collude with such third party, but is ready to bring into Court, or pay or dispose of, the subject matter of the action, as the Court may direct (e). Thereupon the Court, or a Judge, may call on the third party to appear and state the nature and grounds of his claim (ƒ). If the third party do not appear, his claim may be barred (g). If he appears, the Court, or Judge, may make an order, the effect whereof is to relieve the original or stakeholding defendant, by directing the conflicting claimants to proceed to the trial of an Interpleader issue before a Jury, or by the Court, when the motive is one of law, at which the rights of the parties may be determined, and all proceedings against the interpleading defendant stayed.

Relief may be given by the Interpleader, though the titles of the competing claimants are not of common origin, but are adverse to or independent of each other (h).

(e) Ibid.

(c) Judicature Acts, Order I., Rule 2. (d) 1 & 2 Wm. IV., cap. 58, sec. 1.

(f) This should be by affidavit-Powell v. Lock, 3 A. & E. 315. But it need not be made by the plaintiff himself-Webster v. Delafield, 7 C.P. 187, 18 L.J. 186 C.P.

(g) 1 & 2 Wm. IV., cap. 58, sec.

3. (h) 23 & 24 Vict., cap. 126, sec. 12.