Lehigh Valley Coal Co. v. Girard Trust Co.

Citations

• 231 Pa. 239
• 80 A. 60
• 1911 Pa. LEXIS 822

Syllabus

<p>Mortgages — Corporate mortgage — Sinking fund — Coal lands.</p> <p>Where a mortgage on coal lands, given to a trustee by a mining company, to secure an issue of bonds, provides that “where all said bonds shall have been purchased, or when the amount in the hands of the trustee shall be equal to the principal and interest of the bonds then outstanding the payments into the hands of the trustee for a sinking fund shall cease,” the mortgagor may cease to make annual payments into the sinking fund, whenever the amount of the principal and interest then due and accrued upon the bonds outstanding is in the hands of the trustee, provided however that the mortgagor shall continue to pay all interest on the outstanding bonds as it accrues, and continue to keep in the hands of the trustee an amount of securities sufficient to pay all outstanding bonds.</p> <p>Me. Justice Moschziskeb dissents.</p>