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Michigan Law Review

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Constitutional Law--Mortgages--Frazier-Lemke Act May 1935

Constitutional Law--Mortgages--Frazier-Lemke Act

Michigan Law Review

In 1922 and 1924 appellee mortgaged property worth $18,000 to secure a loan of $9,000 from appellant which was to be repaid in installments over a period of thirty-four years. Default being made on the covenants in the mortgage, the mortgagee declared the full amount due and brought a suit to foreclose. Proceedings were stayed when the appellee sought relief under Section 75 of the Bankruptcy Act, but he was unable to obtain the requisite majority in number and amount to the composition proposed. The state court entered a foreclosure judgment and ordered a sale. The mortgagor then sought relief …


Banks And Banking - Power To Pledge Assets To Secure Private Depositors Jun 1933

Banks And Banking - Power To Pledge Assets To Secure Private Depositors

Michigan Law Review

Plaintiff railway company deposited funds in the national bank of the defendant receiver. Dissatisfied with the guaranty of his deposits by surety bonds, the plaintiff demanded and received from the bank Liberty Loan Bonds, which were deposited with the trust officer of the bank to be held as security for the repayment, on demand, of the deposits. On the insolvency of the bank, the receiver refused to turn over the bonds, whereupon the plaintiff brought an action on the contract of pledge. Held, that the contract of pledge of the bank's assets to secure the private deposit was invalid …


Trust Receipts Feb 1933

Trust Receipts

Michigan Law Review

That the conflict between the convenience of business and the rigidity of the law continually brings about modifications and expansions of legal doctrine is nowhere better illustrated than in the field of commercial financing. A merchant wishes to purchase goods; he has no funds or available unencumbered property for security; his general credit is too poor to warrant either the manufacturer or a bank in making advances without security. How can the manufacturer give the merchant possession and power of sale of the goods and yet retain a legal hold on them or their proceeds as security for the payment …


Pledge - Liability Of Pledgee For Depreciation Of Corporate Stock Apr 1932

Pledge - Liability Of Pledgee For Depreciation Of Corporate Stock

Michigan Law Review

The plaintiff brought suit to recover the value of a promissory note for which the defendant had pledged corporate stock as collateral security. Defendant filed a counterclaim for the depreciation in value of the stock between the time he had requested the plaintiff to sell and the time of bringing the suit. Held, that plaintiff was not liable for the depreciation of the stock since the pledgor had made no offer to pay pledgee such sum as would together with the price for which the stock could have been sold satisfy the note. People's Nat. Bank & Trust Co. …


The Principal's Warranty And Offset Claims Against The Creditor As Defenses To The Surety, Victor Levine Dec 1931

The Principal's Warranty And Offset Claims Against The Creditor As Defenses To The Surety, Victor Levine

Michigan Law Review

When a buyer seeks to purchase goods on credit, the seller often refuses to make the sale unless the buyer procures some third person to become liable for the price; and the seller also exacts the privilege of suing either the buyer or the third person or both in the event that payment is not made on the date the price falls due. In a three-party transaction of this sort, the buyer, after the goods are delivered, is commonly called the principal, the seller the creditor, and the third person the surety.


Suretyship--Fraud Of Principal On Surety--Principal As Agent Of Creditor May 1931

Suretyship--Fraud Of Principal On Surety--Principal As Agent Of Creditor

Michigan Law Review

The plaintiff manufactured medicines, selling to peddlers who operated as independent contractors. Menning, a peddler, signed a new contract with plaintiff for operations for the ensuing year, the contract also covering payment of existing debts ($1,794) to plaintiff. The defendant, induced by Menning and relying on his statement that there was no existing debt, signed the contract as surety, the guaranty reciting a consideration of $1 received by defendant and an extension of time on any debts. This contract was terminated after seven weeks, and plaintiff sued for $1670, the balance due. The defendant claimed that Menning was plaintiff's agent …


Suretyship-Discharge Of Guaranty By Payment Of Amount To Which Liability Is Limited Jan 1931

Suretyship-Discharge Of Guaranty By Payment Of Amount To Which Liability Is Limited

Michigan Law Review

Defendant wrote a letter to plaintiff, "Kindly extend credit to A for materials to the amount of $250, and I hereby become security for the same." Relying on this letter, plaintiff for several years sold goods to A. By reason of A's defaults, defendant paid plaintiff $71.80 on one occasion and $197.10 on another. Later, A became indebted to plaintiff to the amount of $464.22 and this action was brought to recover on the guaranty the sum of $250. The court construed the guaranty as a continuing one, but held that that fact did not impose a continuing liability on …


Suretyship-Application Of Payments From Principal To Creditor-Equity Of Surety In Building Contract Funds Apr 1929

Suretyship-Application Of Payments From Principal To Creditor-Equity Of Surety In Building Contract Funds

Michigan Law Review

A building contractor's bond, with professional surety, promises to see that all laborers and materialmen assisting upon a certain construction job are fully paid. With moneys received from work upon this building, the contractor pays a certain sum to a materialman without applying it to any particular debt. The contractor owes the materialman upon two separate debts: one for materials furnished upon this very job, and covered by this surety bond; and a pre-existing debt, in no way connected with the present contract. Is the surety able to insist that the materialman use this payment to discharge the debt on …


Interest On Claims In Receivership Proceedings, Ralph E. Clark Nov 1920

Interest On Claims In Receivership Proceedings, Ralph E. Clark

Michigan Law Review

Outside the cases of receivership, the Supreme Court of the United States has said: "We reach the conclusion that whatever may have been the English and early American rule, the tendency in Virginia as elsewhere in this country, is to allow interest on contracts to pay money from the date that the debt becomes due."'


Bill Of Lading As Collateral Security Under Federal Laws, Frederick Thulin Apr 1918

Bill Of Lading As Collateral Security Under Federal Laws, Frederick Thulin

Michigan Law Review

The desirability of the bill of lading as collateral security has been recognized in business transactions for many decades. The foregoing fact arises from the inherent nature of the financing of transactions of foreign or domestic trade.


Recent Important Decisions, Michigan Law Review Jan 1912

Recent Important Decisions, Michigan Law Review

Michigan Law Review

Adverse Possession--Hostile Character--Possession Under Executory Contract for Sale; Bills and Notes--Bona Fide Purchase--Effect of Taking After Maturity; Bills and Notes--Bona Fide Purchase--Payment of Forged Check--Recovery of Payment; Bills and Notes--Invalidity of Note--Recovery Upon Original Consideration; Constitutional law--Due Process of Law--Situs of Ship for Purposes of Taxation; contracts--Sufficiency of Typewritten Signature; Copyright--Moving Pictures as Dramatization of Book; Corporations--Stockholder's Meetings--Effect of Withdrawal of Stockholders; Courts--The New Commerce Court--Jurisdiction--First Decision; Covenants Running with the Land--Building Restrictions; Damages--Excessiveness--Personal Injuries--Remittitur; Dead Bodies--Burial Determination of Place; Easements--Merger--Use by Owner of Servient Estate--Adverse Possession; Homicide--Burden of Proof When Insanity is a Defense; Intoxicating Liquors--Illegal Sale--"Dispensing"; Judgment--Collateral Attack--Defective …


Note And Comment, Paul S. Dubuar, Arthur Clarke, J. Fred Bingham, Dan B. Symons, Lloyd T. Crane May 1909

Note And Comment, Paul S. Dubuar, Arthur Clarke, J. Fred Bingham, Dan B. Symons, Lloyd T. Crane

Michigan Law Review

Effect of Taking Possession of Mortgaged Property Under a Chattel Mortgage as Against a Junior Mortgagee; The Effect of the Reunion of the Cumberland Presbyterian Church With the Presbyterian Church in the United States of America Upon the Property of the Former; The Exclusive Use of Part of Railroad Station Grounds by Hackmen; Conflict of Jurisdiction in Bankruptcy Cases Between Federal and State Courts; Right of the Legislature to Amend Corporate Charters Under the Reserved Power; Can A Purchaser From a Tenant Acquire Title by Adverse Possession?; Can a Mortgagor After the Execution of the Mortgage Create an Easement in …


The Position Of A Trustee In Bankruptcy With Reference To Unfiled Or Unrecorded Chattel Mortgages And Conditional Sale Contracts, Ralph W. Aigler Apr 1909

The Position Of A Trustee In Bankruptcy With Reference To Unfiled Or Unrecorded Chattel Mortgages And Conditional Sale Contracts, Ralph W. Aigler

Michigan Law Review

Since the enactment of the first bankruptcy act the courts have very frequently been called upon to consider the precise position of the trustee in bankruptcy, with reference to his ability to raise the question of the invalidity of transfers or liens made or created by the bankrupt prior to the proceedings in bankruptcy. The phase of this question indicated by the title of this article is possibly of more interest than the rest of the general subject, because of the changes, or to be more exact, the supposed changes, through which the law has passed. And if the law …


Note And Comment, Harry B. Hutchins, Edson R. Sunderland Dec 1908

Note And Comment, Harry B. Hutchins, Edson R. Sunderland

Michigan Law Review

What is the Practice of Medicine?; The Extent of the Land to Which a Mechanics' Lien Attaches; May a Murderer Acquire Property From His victim by Descent or Devise?; One Way to Prevent Some of the "Law's Delays";


Recent Important Decisions, Michigan Law Review Dec 1908

Recent Important Decisions, Michigan Law Review

Michigan Law Review

Bankruptcy--Concealment of Property--Bankruptcy Schedules Inadmissible Against Bankrupt on Trial for Concealing Property; Bankruptcy--Jurisdiction--Recovering Excessive Counsel Fees; Bills and Notes--Extension of Time of Payment--Release of Lien of Trust Deed; Carriers--Error in Ticket--Ejection of Passenger; Carriers--Free Pass Within Statutory Prohibition; Constitutional Law--Judgment of Sister State--Full Faith and Credit; Corporations--Promoters--Sales to Corporation; Discovery--Personal In juries--Power of Court to Compel Physical Examination of Plaintiff; Divorce--Defense--Connivance; Elections--Primary Elections--Canvassing of Votes; Eminent Domain--Interest on Award Against the Government; Eminent Domain--"Private Property"--Owner's Remedy--Injunction; Evidence--Burden of Proof--Fraudulent Conveyances; Fire Insurance--Forfeiture of Policies--"Other Insurance"; Insurance--Subrogation--Accident Insurance; Judgment--Conclusiveness of Decision of United States Commissioner on Collateral Attack; Master and Servant--Disobedience …


Effect Of Foreign Chattel Mortages Upon The Rights Of Subsequent Purchasers And Creditors, Marion Griffin Mar 1906

Effect Of Foreign Chattel Mortages Upon The Rights Of Subsequent Purchasers And Creditors, Marion Griffin

Michigan Law Review

Should the title or lien of a foreign mortgagee be protected against the claims of creditors and innocent purchasers in the state to which the mortgaged property is removed? It is sometimes said that the chattel mortgage creates a mere lien by the law of the state where made, which is not entitled to recognition in any other state. The weight of authority is otherwise. It is a transfer of the, property itself as a security for the debt. There are some states in which a mortgage of personal property creates no title in the mortgagee, but a mere lien; …