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GEIST v. PRUDENCE REALIZATION CORPORATION

No. 343.

122 F.2d 503 (1941)

GEIST v. PRUDENCE REALIZATION CORPORATION.

Circuit Court of Appeals, Second Circuit.

August 11, 1941.

Attorney(s) appearing for the Case

Irving L. Schanzer, of New York City, for appellant.

Morris A. Marks, of New York City (Geist & Netter, of New York City, on the brief), for appellee.

Before SWAN, CLARK, and FRANK, Circuit Judges.

CLARK, Circuit Judge.

The Prudence Company, Inc., and Prudence-Bonds Corporation, wholly owned subsidiaries of the same parent corporation — New York Investors, Inc. — were together engaged in the mortgage-guaranty business. By a common practice, Prudence would lend money on a bond and real property mortgage, which it would assign to Prudence-Bonds. The latter would place them with a public depository and would issue certificates authenticated by the...

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