In re the Receivership of Frederica Water, Light & Power Co.

Citations

• 10 Del. Ch. 362
• 93 A. 376
• 1915 Del. Ch. LEXIS 26

Syllabus

<p>A \receiver\ of an insolvent corporation is an officer of the court, and takes only what the corporation had.</p> <p>Under a conditional sale contract to sell and erect a water tower on land of a corporation supplying water, the tower resting on and bolted to a cement foundation is a fixture and a part of the realty.</p> <p>Where there is a contract to sell and erect on land of a corporation supplying water, a water tower as a part of its plant, which contract stipulates that the title shall remain in the seller until payment of the price, with right to remove on default, the rights of the seller are superior to a mortgage executed by the corporation subsequent to the contract, but before the building of the structure, and covering not only property in existence at the time of the mortgage, but also after-acquired property, and the seller may as against the mortgagee remove the tower on default in payment of the price.</p> <p>A clause in a mortgage given by a public service corporation that it shall include after-acquired property is valid.</p> <p>Holders of corporate bonds secured by a mortgage covering after-acquired property take after-acquired property subject to any liens or equities with which it is impressed when it comes into the hands of the corporation.</p> <p>Where chattels, intended to become fixtures, are sold with a reservation of title in the seller until payment of the price, the seller does not lose his right by annexation as against the mortgagee whose lien on the land existed at the time of- the annexation, though not when the contract of sale was made, though the mortgage covered subsequently acquired property.</p> <p>A conditional sale contract, giving the seller on default in payment of the price the right to remove property annexed to land, limits the right of the seller to removal, but on the insolvency of the buyer the property may with the other property be sold after an agreement fixing the value of the property, the amount of which on