New Paddock-Hawley Co. v. Fayetteville Wagon Wood & Lumber Co.

Citations

• 207 F. 786
• 1913 U.S. Dist. LEXIS 1350

Syllabus

<p>1. Corporations (§ 474*)—Subrogation (§ 26*)—Bonds—Transfer—Owner-ship.</p> <p>Bonds having been issued by a bankrupt corporation, certain of them were pledged to a trust company as collateral to a note for money borrowed from the trust company through the bankrupt’s financial agent, the P. H. Co. The proceeds of the note were delivered to the P. H. Co., and credited to the bankrupt. Extension or renewal notes were made which were paid by the P. H. Co. and charged in the same way, and the unsold bonds were delivered to the P. H. Co. by the trust company. Mold that, the P. H. Co. not being liable on the note, to secure which the bonds were pledged, its claim against the bankrupt being on an open account only, it was not the owner of the bonds so surrendered by th^ trust company, nor was it subrogated to the trust company’s lien.</p> <p>[Ed. Note.—For other cases, see Corporations, Cent. Dig. § 1854; Dec. Dig. § 474;* Subrogation, Cent. Dig. § 67; Dec. Dig. § 26.*]</p> <p>2. Corporations (§ 543*)—Insolvency—Sale of Assets by Committee.</p> <p>A sale of the assets of an insolvent corporation by a committee of its creditors does not differ in any respect from a sale made by an assignee, receiver, or trustee in bankruptcy, and is not a sale in the usual course of business which will confer on the purchaser the rights of a bona fide purchaser for value, without notice.</p> <p>[Ed. Note.—For other cases, see Corporations, Cent. Dig. § 2161; Dec. Dig. § 543.*]</p> <p>3. Corporations (§ 472*)—Insolvency—Sale of Assets by Committee—Bona Fide Purchaser.</p> <p>An insolvent corporation in the hands of a committee of creditors had in its possession certain bonds issued by the bankrupt, for which the corporation had acted as fiscal agent, but which it did not own, having received the same from a pledgee to hold and deliver to the bankrupt. The creditors’ committee, in order to liquidate the corporation’s assets, sold all of the bonds to two persons who organized complainant co