Penn v. Calhoun

Citations

• 121 U.S. 251
• 7 S. Ct. 906
• 30 L. Ed. 915
• 1887 U.S. LEXIS 2042

Syllabus

<p>In a suit for foreclosing a railroad mortgage, the court being satisfied that money loaned the railroad company by a bank, an intervening creditor, at a time when the company was much embarrassed, and shortly before the commencement of the.suit, went into the general funds of the company, and not especially to the payment of mortgage interest, and that there was no fraud or deception on the part of the trustees, aüd no misuse of current income by the receiver of' the road to the injury of the bank; - Held, that the bank had only the rights of a general creditor in the distribution of the proceeds from the sale of the mortgaged property.</p>