DELATOUR v. PRUDENCE REALIZATION CORPORATION

No. 5, Docket 20434, October Term, 1947.

167 F.2d 621 (1948)

DELATOUR et al. v. PRUDENCE REALIZATION CORPORATION.

Circuit Court of Appeals, Second Circuit.

April 5, 1948.


Attorney(s) appearing for the Case

Halpin, Keogh & St. John, of New York City (Edward S. St. John, of New York City, of counsel), for Hunter L. Delatour and Raymond Reisler, Trustees of Espade Realty Corporation.

Irving L. Schanzer, of New York City, for Prudence Realization Corporation, appellant.

Delafield, Marsh & Hope, of New York City (Eugene Blanc, Jr., of New York City, of counsel), for appellee City Bank Farmers Trust Co.

Newman & Bisco, of New York City (David Barnett, of New York City, of counsel), for appellees Manufacturers Trust Co. as depositary and parties in the armed services.

Roger S. Foster, Sol., and Sidney H. Willner, Associate Sol., both of Philadelphia, Pa., and George Zolotar, Special Counsel, of New York City (Alexander Cohen, of Philadelphia, Pa., Ezra Weiss and Kiva Berke, both of New York City, of counsel), for Securities and Exchange Commission.

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


CHASE, Circuit Judge.

The appeal is from an order entered in the proceedings, commenced on March 20, 1944, for the reorganization under Chapter X of the Bankruptcy Act, 11 U.S.C.A. § 501 et seq., of Espade Realty Corporation. The sole issue is whether certain holders of defaulted certificates of participation in a single mortgage on real estate of the debtor are entitled to interest at 6%, which is both the rate the mortgage bore and the legal rate of interest...

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