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Some Problems Arising Out Of Deposits To Pay Principal And Interest On Bonds, Paul P. Lipton
Some Problems Arising Out Of Deposits To Pay Principal And Interest On Bonds, Paul P. Lipton
Michigan Law Review
Since Lawrence v. Fox contracts students have been puzzled by the numerous and varying relations that may arise when A, the debtor, delivers money to B to pay C, his creditor. Equally puzzling and much more complicated are the rights and relations of the obligor, trustee and bondholders with respect to sums deposited with the trustee to pay principal and interest on bonds.
The insolvency during recent years of many large trust companies that had been named as trustees in indentures securing corporate bonds, having on hand at the time of their failure large sums of money which …