Law Commons^™

Trust Mortgages -- Construction Of No-Action Clause, William J. Isaacson

Michigan Law Review

Plaintiff, a trustee under a trust indenture securing two issues of defendant company's bonds, sought to recover a partial summary judgment for interest, premiums, and principal on the series of bonds then due. Defendant company conceded that the sums claimed were overdue and unpaid, but contended that the real right of action on the bonds was vested in the bondholders. The bonds on their face made a reference to the trust indenture for a description of the rights of the holders. The bonds further contained a stipulation that, except as otherwise provided for in the trust indenture, all rights of …