In re Fayetteville Wagon-Wood & Lumber Co.

Citations

• 197 F. 180
• 1912 U.S. Dist. LEXIS 1404

Syllabus

<p>Bankruptcy (§ 262*) — Sale of Property Discharged of Lien.</p> <p>Where the real estate and machinery of a bankrupt corporation, mortgaged to secure its bonds, will not bring enough to pay the bonds, if valid, and the ownership and validity of the bonds and mortgage are contested by the trustee in bankruptcy in a suit by the alleged owner of the bonds to foreclose, the court of bankruptcy will not order the trustee to sell the mortgaged property free of incumbrance, though the real estate and machinery will bring more, when sold together with the stock and material on hand, than when sold separately, and though the building, machinery, stock, and material are deteriorating in value, but the bondholder, on establishing ownership, must be permitted to use the bonds in the purchase of the mortgaged property at a sale.</p> <p>[Ed. Note. — -B’or other cases, see Bankruptcy, Cent. Dig. §§ 363-365; Dec. Dig. § 262.*]</p>