Fidelity Ins., T. & S. D. Co. v. West. Penn. & S. C. R.

Citations

• 122 Pa. 565
• 16 A. 100
• 1888 Pa. LEXIS 633

Syllabus

<p>1. The protection of the resolution of January 21, 1843, P. L. 367, extends only to debts or liabilities which were incurred and remain unpaid prior to the execution of “ any such assignment, conveyance, mortgage or transfer” in question: McBroom’s' App., 44 Pa. 92 ; Tyrone etc. Ry. Co. v. Jones, 79 Pa. 60.</p> <p>2. Henee a contractor, all of whose work was done after the recording of a trust deed executed by a railroad company, may have no advantage of said resolution, even though his work and materials made the corporate property and franchises available as a security.</p> <p>3. Such contractor, who had knowledge that under a trust mortgage the company issued bonds in excess of the capital stock paid in, and who was a participant in the fraud of such issue, may not attack the validity of the mortgage as in violation of the act of March 13, 1873, P. L. 45.</p> <p>4. Videtur: When bonds, secured by a corporation deed of trust, are issued and sold at different dates thereafter, the whole issue must be treated as made of the date of the trust deed, regardless of the time when actually issued, unless the contrary is clearly expressed.</p>