A corporation has an implied power to borrow money for corporate purposes,1 and to give its notes for its debts,2 to pledge its bonds for its indebtedness,3 and to secure its debts by mortgage.4 Thus a corporation formed to buy land may mortgage land thus bought for the purchase money,5 and after acquired property may be mortgaged.6 Under a statute requiring the consent of the stockholders at a regularly called meeting as a condition precedent to the validity of a mortgage, a mortgage given under other circumstances is said to be ultra vires.7 However, such a statute restricting the power of mortgage, requiring a majority of the stockholders to acquiesce, applies to the corpus of the property, not to the output.8

1 Kneeland v. Ry. Co., 167 Mass. 161; 45 N. E. 86.

2 Tod v. Land Co., 57 Fed. 47; Temple, etc., Co. v. Hellman, 103 Cal. 634; 37 Pac. 530; Kneeland v. Ry. Co., 167 Mass. 161; 45 N. E. 86; Merchants', etc., Bank v. Gaslight Co., 159 Mass. 505; 38 Am. St. Rep. 453; 34 N. E. 1083; Peninsular, etc., Bank v. Hosie, 112 Mich. 351; 70 N. W. 890; Africa v. News-Tribune Co., 82 Minn. 283; 84 N. W. 1019; National Bank v. Young, 41 N. J. Eq. 531; 7 Atl. 488.

3 New Memphis Gaslight Co. Cases, 105 Tenn. 268; 80 Am. St. Rep. 880; sub nomine Rawlings v. Gaslight Co., 60 S. W. 206.

4 Jones v. Guaranty, etc., Co., 101 U. S. 622; Wood v. Whelen, 93 111. 153; Wright v. Hughes, 119 Ind. 324; 12 Am. St. Rep, 412; 21 N. E. 907; Bell, etc., Co. v. Glass-Works Co.,

106 Ky. 7, 23; 50 S. W. 2, 1092; 51 S. W. 180; reversing on rehearing, 48 S. W. 440; Burrill v. Bank, 2 Met. (Mass.) 163; 35 Am. Dec. 395; Hays v. Galion, etc., Co., 29 O. S. 330; Hunt v. Gaslight Co., 95 Tenn. 136; 31 S. W. 1006; Threadgill v. Pumphrey. 87 Tex. 573; 30 S. W. 356; affirming 9 Tex. Civ. App. 184; 28 S. W. 450.

5 Sheppard v. Mining Co., 25 Ont. 305.

6 Frank v. Hicks, 4 Wyom. 502; 35 Pac. 475; rehearing denied. 4 Wyom. 534; 35 Pac. 1025. By statute in Georgia, a corporation cannot mortgage future income. Lubroline Oil Co. v. Bank, 104 Ga. 376; 30 S. E. 409.

7 Southern, etc., Association v. Stable Co., 128 Ala. 624; 29 So. 654.

8 Alabama, etc., Co. v. McKeever, 112 Ala. 134; 20 So. 84.