242. Blank transfers of stocks and shares.

242.     Blank transfers of stocks and shares.

Where stocks or shares can be transferred only by deed, a blank transfer does not in itself provide any security to the mortgagee1 as an instrument containing blanks is not a deed2. The mortgagee should obtain authority from the mortgagors to fill in the blanks and deliver the transfer as a deed3. Where, however, transfers are not required to be by deed, an equitable mortgagee has an implied authority to complete the transfer for the purpose of perfecting his security4.