Whether a corporation can buy its own stock is another disputed point. The greater number of cases hold that it may except when it is insolvent and such purchases would defraud creditors.1 In some of the cases cited on this point, the only power involved was the power to rescind a conditional contract for the sale of stock on breach of that condition,2 or where the purchaser has never paid for his stock,3 or where the capital expended for stock was expended under a statute authorizing the reduction of the capital stock.4 Other authorities deny the right of a corporation to buy its own stock,5 except where it acquires such stock to secure a debt due to the corporation from the stockholder. All the authorities agree that it may then acquire its own stock.6 If the creditors of the corporation object such purchase may be avoided as far as concerns their interests.7 A loan to an insolvent corporation to enable it to buy its own stock was held to be illegal and void as in fraud of its creditors.8

8 Central Ohio Nat'l Gas and Fuel Company v. Dairy Company, 60 O. S. 96; 53 N. E. 711.

1 Chicago, etc., R. R. Co. v. Mar-sielles, 84 111. 145; Clapp v. Peterson, 104 111. 26; Republic, etc., Ins. Co. v. Swigert, 135 111. 150; 12 L. R. A. 328; 25 N. E. 680; Iowa Lumber Co. v. Foster, 49 Ia. 25; 31 Am. Rep. 140; Rollins v. Wagon, etc., Co., 80 Ia. 380; 20 Am. St. Rep. 427; 45 N. W. 1037; Davis v. Proprietors, etc., 8 Met. (Mass.) 321; Dupee v. Power Co., 114 Mass. 37; New England Trust Co. v. Abbott, 162 Mass. 148; 27 L. R. A. 271; 38 N. E. 432; Oliver v. Ice Co., 64 N. J. Eq. 596; 54 Atl. 460; Berger v. Steel Corporation, 63 N. J. Eq. 809; 53 Atl. 68; reversing, 63 N. J. Eq. 506; 53 Atl. 14; Chapman v. Rheostat Co., 62 N. J. L. 497; 41 Atl. 690; Strong v. R. R. Co., 93 N. Y. 420; City Bank v. Bruce, 17 N. Y. 507; Blalock v. Mfg. Co., 110 N. C. 99; 14 S. E. 501; Eby v. Guest, 94

Pa. St. 160; Dock v. Cordage Co., 167 Pa. St. 370; 31 Atl. 656; Howe, etc., Co. v. Jones, 21 Tex. Civ. App. 198; 51 S. W. 24; Shoemaker v. Lumber Co., 97 Wis. 585; 73 N. W. 333.

- Chicago, etc., Co. v. Marseilles, 84 111. 145 (subscription conditioned on completion of road in one year) ; Chapman v. Rheostat Co., 62 N. J. L. 497; 41 Atl. 690.

3 Shoemaker v. Lumber Co., 97 Wis. 585; 73 N. W. 333.

4 Strong v. Ry. Co., 93 N. Y. 426.

5 Bellerby v. S. S. Co. (1902), 2 Ch. 14; San Luis Obispo Bank v. Wickersham, 99 Cal. 655; 34 Pac. 444; Abeles v. Cochran, 22 Kan. 805; 31 Am. Rep. 194; Price v. Coal Co. (Ky.), 32. S. W. 267; Coppin v. Greenlees, etc., Co., 38 O. S. 275; 43 Am. Rep. 425; Adams, etc., Co. v. Deyette, 8 S. D. 119; 59 Am. St. Rep. 751; 31 L. R. A. 497; 65 N. W. 471; same ease, 5 S. D. 418; 49 Am.