W. O. & W. R. R. v. Lewis

Citations

• 83 Va. 246
• 2 S.E. 746
• 1887 Va. LEXIS 59

Syllabus

<p>Railroads—Cotmty bands—Mortgages—Sale—Purchasers—Case at bar.— County bonds issued to aid a railroad company were payable upon-construction of the railroad through the county by 1892. Before that the company received the bonds and executed a first mortgage to secure-the county against the interest and the bonds in case the road was not constructed by 1892. The company hypothecated part of the bonds. Under second and third mortgages afterwards executed in a general creditor’s suit, the railroad was sold subject to the first mortgage. The proceeds were partly applied to redeem the hypothecated county bonds—</p> <p>Held :'</p> <p>The purchasers are not entitled to the redeemed bonds unless they first refund to the general creditors as much of the proceeds of the sale as went to redeem them.</p>