Booker v. Crocker

Citations

• 132 F. 7
• 65 C.C.A. 627
• 1904 U.S. App. LEXIS 4325

Syllabus

<p>X, Mortgage — Co-bondholders’ Purchase or Liens — Contribution.</p> <p>One of several holders of bonds secured by a common mortgage, whe purchases superior liens upon or titles to the mortgaged property, takes them in trust for his co-bondholders upon condition that within a reasonable time after they receive notice of his purchases they contribute to him their proportionate shares of the amounts he paid for them. A community of interest in a common title or security involves a mutual obligation not to impair it.</p> <p>2. Same — Proportionate Share Measured by Par Value or Bonds.</p> <p>The proportionate share of each bondholder in the liens purchased and in the expenses thereof is measured by the par value of the bonds which he holds, and not by the amount he paid for them.</p> <p>3..Same — One who Contributes, Shares in Liens os Titles upon Other Property Purchased to Protect Common Security.</p> <p>Where the liens or titles purchased to protect the common security also cover other property not subject to the common mortgage, a bondholder who contributes his share of the expenses of their purchase acquires a like share in the liens or titles upon property thus purchased which is not subject to the mortgage.</p> <p>(Syllabus by the Court)</p>