Real Estate Trust Co. v. Wilmington & New Castle Electric Railway Co.

Citations

• 9 Del. Ch. 99
• 77 A. 756
• 1910 Del. Ch. LEXIS 12

Syllabus

<p>A provision, in a corporate mortgage to secure bonds, that written notice must be delivered to the president, secretary and treasurer of the corporation at its prinicpal office to make overdue payments within thirty days, as a condition precedent to foreclosure, is complied with where the president, secretary and treasurer in fact received the notice, though it was not delivered to them at the princiapl office of the corporation where the corporation had consolidated with another corporation, and so had no principal office.</p> <p>The solicitor of one party to a case is a competent witness to prove an admission by the adverse party.</p> <p>The solicitor for the complainant is a competent witness to prove service of a notice on the defendant, constituting a condition precedent to the right to sue.</p> <p>To constitute usury, there must in fact be a loan of money or its equivalent; and a transaction which is apparently a sale or exchange is not a loan, unless such was the intention of the parties, or the transaction was a loan under cover of sale or exchange.</p> <p>A railway company, authorized to borrow money to complete and equip its road and secure the same by mortgage, employed the lowest bidder to build and equip the road. The bidder was paid for the work, from time to time, in the mortgage bonds of the company. The bonds were certified in accordance with a resolution of the directors of the company, and were wholly used for the building of the road, the transaction being in good faith; but the cost of the work was less than the face of the bonds. Held, that the bonds and mortgage were not tainted with usury; the transaction not being a loan under cover of a contract to build the road in consideration of the bonds.</p> <p>Evidence held not to show that bonds issued by a railway company to a contractor to build and equip the road were fraudulent and unenforceable.</p> <p>. Evidence held to show that a holder of bonds issued by a railway company to a contractor