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Corporations-Duty Of Corporate Trustee To Record Mortgage Securing Bonds
Corporations-Duty Of Corporate Trustee To Record Mortgage Securing Bonds
Michigan Law Review
Plaintiff became the holder of bonds issued under and secured by a collateral trust agreement executed in Pennsylvania. The mortgage contained the provision that " * * * the trustee, save for its gross negligence or wilful default, shall not be personally liable for any loss or damage" and further that "It shall be no part of the duty of the trustee to record this instrument as a mortgage." The mortgage was not recorded nor the mortgage debt satisfied. Plaintiff sued the trustee in New York for negligence. Held, the contract limited the obligations and duties of the trustee, …
Corporations-Right Of General Creditors, After Appointment Of Receiver In Suit Brought For Foreclsoure Of Mortgage Covering Major Portion Of Assets, To Have Receivership Extended For Protection And Eventual Liquidation Of Unmortgaged Assets
Michigan Law Review
When the affairs of a corporation become so involved that it is not able to meet its maturing obligations as they become due and it is necessary either that the corporation be reorganized on a more sound financial basis or that its assets be liquidated in an orderly manner, to the best advantage of its creditors and stockholders, it is customary, as a basis for such reorganization or liquidation, to have a receiver appointed of all the property and assets of the corporation. Such receivership is usually precipitated by the filing in the federal court of a bill of complaint …