Bell v. Scranton Trust Co.

Citations

• 261 Pa. 28
• 103 A. 1019
• 1918 Pa. LEXIS 681

Syllabus

<p>Trusts and trustees — Corporate toan — Mortgage to trustee as security — Failure to insure premises — Destruction by fire — Liability of trustee — Contracts—Construction.</p> <p>Where a corporation executed a mortgage to a trust company to secure the payment of a bond issue, and thereafter the property of the corporation was destroyed by fire, and an action was brought by a committee of the bondholders of the corporation against the trust company for its failure to enforce an alleged covenant in the mortgage as to fire insurance, a rule for judgment was properly discharged, where it appeared that the covenant declared upon did not appear in the mortgage, and that the mortgage expressly provided “it is further covenanted and agreed that trustee phall not _......incur any liability by reason of any loss arising from failure of the (mortgagor) to keep the mortgaged premises......insured.”</p>