Mark v. American Brick Manufacturing Co.

Citations

• 10 Del. Ch. 58
• 84 A. 887
• 1912 Del. Ch. LEXIS 19

Syllabus

<p>Independent of statute, a court of equity, administering the estate of an insolvent corporation, will allow a creditor holding collateral to prove and receive payment on his full claim, without deducting therefrom the amount obtained from the collateral, provided that in no event he receives more than his full debt from either or both sources.</p> <p>A mortgagee of an insolvent corporation may share in the proceeds of its unmortgaged property administered in a court of equity based on the full amount of the mortgage debt and interest thereon to the day of sale of the mortgaged property, provided he receives no more than the amount of such debt and interest.</p> <p>A court of equity, administering the affairs of an insolvent corporation, may require a creditor holding collateral to realize on the collateral, or have it appraised, and the value, or the proceeds thereof, considered in the final settlement with him, so that he may not receive more than the whole amount of his debt from the collateral and the other property of the corporation.</p>