IN RE PRUDENCE CO.

No. 78.

92 F.2d 424 (1937)

In re PRUDENCE CO., Inc. In re CHASE NAT. BANK OF NEW YORK CITY.

Circuit Court of Appeals, Second Circuit.

November 1, 1937.


Attorney(s) appearing for the Case

Milbank, Tweed, Hope & Webb, of New York City (Hugh L. M. Cole, of New York City, of counsel), for petitioner.

Thomas Cradock Hughes and Emanuel Celler, both of New York City (Irving L. Schanzer and Hubert Margolies, both of New York City, of counsel), for trustees, etc.

Before MANTON and CHASE, Circuit Judges, and COXE, District Judge.


MANTON, Circuit Judge.

The trust agreement under which the appellant is trustee secures bonds of the Prudence-Bonds Corporation called the Fourteenth Series, for $4,658,500, now outstanding by deposits of collateral. The debtor is the guarantor of the bonds under this trust agreement, and pursuant to the terms of the guaranty it was given the agency to manage and service the collateral. The debtor was not a party to the trust agreement, nor was it the owner of any...

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