Some Questions Involving the Public Sale of Stock in Foreclosure of a Pledge

摘要

Questions often arise that involve the proposed sale of corporate stock by a pledgee bank or securities brokerage firm in foreclosure of a pledge of such stock upon an event of default by the pledgor of that stock. In most of these cases, the pledgor is an affiliate of the issuer of the stock, and the foreclosing pledgee is not an affiliate of the issuer, and never has been an affiliate of the issuer. Set forth below is a discussion of some of these questions, as well as the answers thereto.