Lawrence E. Sexton v. Leopold Louis Dreyfus

Citations

• 219 U.S. 339

Syllabus

<p>Under the Bankruptcy Act of 1898, a secured creditor selling his securities after the filing of the petition must apply the proceeds, other ■ than interest and dividends accrued since the date of the petition, first to the liquidation of the debt with interest to the date of the petition; he cannot first apply such proceeds to interest accrued since the petition.</p> <p>A secured creditor of a bankrupt can apply interest and dividends accruing on the securities after the date of the petition to interest on ^the debt accruing after such date.</p> <p>The English rule and authorities discussed and approved.</p> <p>180 Fed. Rep. 979, reversed.</p>