BILLS AND NOTES-NEGOTIABILITY OF CORPORATE DEBENTURES

Authors

Abstract

Many corporate bonds and debentures contain some such reference provision as the following: "* * * all [bonds, debentures] issued under a certain Trust Agreement, dated as of June 15, 1926, executed by the Company to the National City Bank of New York, as Trustee, to which Trust Agreement reference is hereby made for a statement of the terms under which the said Debentures are issued and the rights and obligations of the Company, of the Trustee and of the respective holders of the said Debentures under said Trust Agreement. * * *." To this clause some of these securities have added: "To the extent provided in the said Trust Agreement, all rights of action upon this Debenture are vested in the Trustee." The Michigan supreme court recently held the first reference provision did not affect the negotiability of bearer debentures; which were executed in New York, relying upon Enoch v. Brandon and National Bond and Investment Co. v. Lanners, nor did the latter quoted sentence.'"

Recommended Citation

BILLS AND NOTES-NEGOTIABILITY OF CORPORATE DEBENTURES, 29 Mich. L. Rev. 1062 (1931).
Available at: https://repository.law.umich.edu/mlr/vol29/iss8/9