274. Effect of obtaining legal title.

274.     Effect of obtaining legal title.

A legal title1 to securities acquired in perfection of an equitable title when the equitable title has been obtained without notice of prior equities will oust those equities, even though its holder acquired the legal title with notice of the prior equities2. If, however, an equitable title is acquired with notice of prior equities, the subsequent getting in of the legal title does not assist the holder and he takes subject to the prior equities3. Notice of prior equities is imputed where the circumstances are such as to make it reasonable