In re J. H. Alison Lumber Co.

Citations

• 137 F. 643
• 1905 U.S. Dist. LEXIS 230

Syllabus

<p>1. Bankruptcy—Lien.</p> <p>Where mortgaged property of an insolvent corporation was disposed of during a receivership prior to the institution of proceedings in bankruptcy, but neither the receiver nor the trustee in bankruptcy received any part of the proceeds, the mortgagee has no claim on the fund in the hands of the trustee on account of the mortgage.</p> <p>2. Same—Priority op Claims—Receiver op State CouitT.</p> <p>A receiver appointed by a state court for an insolvent corporation in proceedings instituted shortly prior to bankruptcy proceedings is not entitled to priority in the bankruptcy court on account of his services rendered prior to the bankruptcy proceedings, or of expenses or advances made to the estate which did not contribute to the fund in the hands of the trustee.</p> <p>3. Same—Costs—Requiring Payment prom Secured Creditors.</p> <p>Secured creditors of a bankrupt who make use of the bankruptcy court and officers to realize on their security may be required to contribute their proportion to the costs of the proceedings and for the preservation of the property during their pendency, where there is not sufficient unincumbered estate, but they cannot be required by the court to pay any part of the expenses of a prior receivership in a state court.</p>