§ 339-e. Hypothecation of customer's securities. Any person, firm,
association or corporation engaged in the business of purchasing and
selling as a broker or dealer stocks, bonds or other evidences of debt
of corporations, companies or associations, who

1. Having in his or its possession, for safe keeping or otherwise,
stocks, bonds or other evidences of debt of a corporation, company or
association belonging to a customer, without having any lien thereon or
any special property therein, pledges or disposes thereof without such
customer's consent; or

2. Having in his or its possession stocks, bonds or other evidences of
debt of a corporation, company or association belonging to a customer on
which he or it has a lien for indebtedness due to him or it by the
customer, pledges the same for more than the amount due to him or it
thereon, or otherwise disposes thereof for his or its own benefit,
without the customer's consent, and without having in his or its
possession or subject to his or its control, stocks, bonds or other
evidences of debt of the kind and amount to which the customer is then
entitled, for delivery to him upon his demand therefor and tender of the
amount due thereon, is guilty of a misdemeanor.