Sturdivant Bank v. Schade

Citations

• 195 F. 188
• 115 C.C.A. 140
• 1912 U.S. App. LEXIS 1360

Syllabus

<p>1. Corporations (§ 440*)—Deed of Trust—Equitable Mortgage.</p> <p>A corporation having been organized by the president of another corporation, certain land was conveyed to it, and it executed a deed of trust to secure certain notes to the grantor corporation' which the president transferred to claimant bank as collateral to an indebtedness owing by the payee of the notes and beneficiary of the deed. Held that, though the creation of such corporation and the execution and delivery of the deed of trust was a mere paper transaction, it would nevertheless be sustained as an equitable mortgage in favor of the bank to the extent of the amount of the collateral notes pledged to it.</p> <p>[Ed. Note.—For other cases, see Corporations, Cent. Dig. §§ 1775-1777; Dec. Dig. § 440.*]</p> <p>2. Mortgages (§ 233*)—Collateral Notes—Rights of Pledgee.</p> <p>A pledge of collateral notes secured by a trust deed to a bank in equity vested in the bank whatever interest the pledgor had in the trust deed, and the transfer of the collateral notes and a delivery of the trust deed to the hank constituted an equitable assignment thereof.</p> <p>[Ed. Note.—For other cases, see Mortgages, Cent. Dig. §§ 618, 619; Dec. Dig. § 233.*]</p> <p>3. Bankruptcy (§ 161*)—Pledges—Preference.</p> <p>Where a transfer of collateral notes secured by a trust deed was made to a bank as collateral security for a present loan, it was neither fraudulent nor a voidable preference tinder Bankruptcy Act July 1, 1898, c. 541, § OOab. 30 Stat. 562 (U. S. Comp. St. 1901, p. 3445), not having been made within four months before the filing of the petition in bankruptcy.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 261-263; Dec. Dig. § 161.*]</p> <p>4. Mortgages (§ 231*)—Assignment—Pledge—“Instrument Affecting Real Estate’ ’—Record .</p> <p>A pledge of notes secured by a trust deed executed by a corporation to a hank as collateral security for a loan to the payee of the notes, not being in writing, wa