McVicar Realty Trust Co. v. Union Ry. Power & Electric Co.

Citations

• 136 F. 678
• 1905 U.S. App. LEXIS 5171

Syllabus

<p>1. Mortgage — Foreclosure—Negotiable Bonds — Fraud.</p> <p>On a suit by a trustee to foreclose a mortgage securing negotiable bonds, held that, while the general rule is that a holder of such securities purchased in the open market is a bona fide holder, and the burden of proof is upon him who would attack such title, nevertheless when the mortgage and bonds are found to have been without consideration, and fraudulent in their inception, the burden shifts, and the holder must show that he was an innocent purchaser.</p> <p>[Ed. Note. — For cases in point, see vol. 8, Cent Dig. Bonds, § 222.)</p> <p>2. Same — Evidence—Bona Fide Holders.</p> <p>Held, also, under the evidence, that the mortgage and the bonds in question were fraudulent, and without consideration, and that those claiming to hold the bonds were not bona fide holders.</p> <p>(Syllabus by the Court.)</p>