United States v. American Loan & Trust Co.

Citations

• 120 F. 843
• 1903 U.S. App. LEXIS 5309

Syllabus

<p>1. Trust — Construction ou Instrument Creating — Distribution or Fund.</p> <p>A railroad company having acquired the property of another company, which was subject to three mortgages and liens, executed an instrument of trust by which it created a sinking fund in the hands of a trustee “for the protection, benefit, and further security” of the three liens, naming them in the order of their priority. The instrument then provided that the fund should be applied to the payment of such debts “according to the principles of equity, to the end that all of said lien or mortgage creditors * * ■ * may be entitled thereto in due order.” Held, that such provision required the application of the fund to the several liens in order of priority which the beneficiaries occupied in the original security.</p>