Robinson v. Ellis

Citations

• 70 Pa. Super. 138
• 1918 Pa. Super. LEXIS 194

Syllabus

<p>Assignments for the benefit of creditors — Construction of instrument — Recording—Extension by creditors.</p> <p>A letter of attorney executed by a person owning real estate encumbered by mortgages and judgments will be construed to be an assignment for the benefit of creditors where the paper authorizes the attorney to sell the real estate within two years, and in the meantime to lease it, and pay out of it the rents, taxes, insurance and other charges, and after such payments to distribute the residue to creditors having priority of lien, and any balance over to the assignee, and with a further provision that the letter should be irrevocable by a written agreement of extension signed by the creditors. Meld, that the letter taken in connection with the signed agreement of extension by the creditors constitutes an irrevocable assignment of the real estate for the benefit of creditors.</p> <p>In such a case where the attorney is unable to make a sale and the senior mortgage creditor forecloses, and the real estate is sold at sheriff's sale, one of the creditors who had signed the extension, cannot object, on the distribution of the fund, that the letter of attorney was not recorded within thirty days from its date as required by Section 5 of the Act of March 24,1818, P. L. 132.</p>