BROOKLYN TRUST CO. v. R. A. SECURITY HOLDINGS, INC.

No. 166.

134 F.2d 164 (1943)

BROOKLYN TRUST CO. v. R. A. SECURITY HOLDINGS, INC.

Circuit Court of Appeals, Second Circuit.

March 4, 1943.


Attorney(s) appearing for the Case

Lynn G. Goodnough, of Brooklyn, N. Y. (Lynn G. Goodnough and William C. Hare, both of Brooklyn, N. Y., of counsel), for R. A. Security Holdings, Inc.

Walter F. O'Malley, of New York City (George O. Lehmann, of New York City, of counsel), for petitioners-appellees.

John F. Davis, of Philadelphia, Pa. and George Zolotar, of New York City (Theodore L. Thau, of Washington, D. C., and Earl J. Wofsey and Kiva Berke, both of New York City, of counsel), for Securities and Exchange Commission.

Arthur Block, of Brooklyn, N. Y., for J. Read Smith, Trustee of the Estate of R. A. Security Holdings, Inc., Debtor Corporation.

Before SWAN, AUGUSTUS N. HAND and CLARK, Circuit Judges.


AUGUSTUS N. HAND, Circuit Judge.

The debtor, R. A. Security Holdings, Inc., owns a single parcel of real estate at 107 West 86th Street, New York City, subject to a mortgage in the principal sum of $825,000 and unpaid interest. It acquired the title subject to this mortgage but never assumed an obligation to pay the indebtedness which was that of the Prudence Bonds Corporation and was guaranteed by the Prudence Company Inc. The Brooklyn Trust Company held participation...

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