NATIONAL BONDHOLDERS CORP. v. SEABOARD C. NAT. BANK

No. 4561.

110 F.2d 138 (1940)

NATIONAL BONDHOLDERS CORPORATION v. SEABOARD CITIZENS NAT. BANK OF NORFOLK, VA.

Circuit Court of Appeals, Fourth Circuit.

On Petition for Rehearing March 9, 1940.


Attorney(s) appearing for the Case

Ralph Wolf, of New York City (John W. Oast, Jr., of Norfolk, Va., and Milton Klein and Hays, Wolf, Kaufman & Schwabacher, all of New York City, on the brief), for appellant.

James Mann and S. Heth Tyler, both of Norfolk, Va. (Mann & Tyler, of Norfolk, Va., on the brief), for appellee.

Before PARKER and SOPER, Circuit Judges, and COLEMAN, District Judge.


SOPER, Circuit Judge.

The purpose of this suit is to establish an obligation on the part of the trustee under a collateral trust indenture or bond mortgage to pay to the certificate or bondholders or their representative, a sum of money paid to the mortgagor in the liquidation of certain collateral notes which had been deposited with the trustee as security for the payment of the bonds. The money received by the mortgagor was used by it for its own purposes and was...

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