The Elements of the Law of Negotiable Instruments

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§§ 49, 50. QUASI-NEGOTIABLE INSTEUMEXTS. 29 issue certificates to the prior purchaser, who had acquired the stock by transfer of the certificate in due course.®* § 49. Usual methods of transfer of stock — On the back of the certificates there is generally a printed form of sale and assignment," with an irrevocable power of attorney in blank, authorizing the unnamed person to do all things requisite to perfect the transfer on the books of the corpo- ration. When such formal assignment, and power
... of attor- ney in blank, is signed by the shareholder, and the certificate is delivered therevdth, an apparent ownership in the shares represented is created in the holder. And the general prin- ciple sustained by the great weight of authority, as well as of reason, is that when the owner of a certificate of stock with such a power of attorney in blank thereon writ- ten, or thereunto attached, intrusts it to an agent with power to deal therewith, a bona fide purchaser for value without notice will be protected in his acquisition of th© certificate, although the agent to whom it has been intrusted has diverted it from the purposes for which it was put in his charge, or has been guilty of a fraud or breach of trust in reference thereto.

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