Ketchum v. St. Louis - 101 U.S. 306 (1879)
U.S. Supreme Court
Ketchum v. St. Louis, 101 U.S. 306 (1879)
Ketchum v. St. Louis
101 U.S. 306
1. The Act of the General Assembly of Missouri approved Jan. 7, 1865, under which the County of St. Louis loaned its bonds to the extent of $700,000, to the Pacific Railroad Company created, on its acceptance by the company and the county, an equitable lien or charge, in favor of the county, upon the earnings of the road, to the extent necessary to meet the interest upon the bonds as it accrues. The lien continues until the bonds shall be paid.
2. All purchasers of the property of the company, or of its bonds issued under a mortgage subsequently executed, are bound to take notice of that act. Where, in a suit to foreclose such a mortgage, the road is placed under the charge of a receiver, the lien or charge in favor of the county is enforceable not only against the fund in his hands, but against the purchaser under the decree, and against whomsoever may hold the road or have the custody of its earnings.
3. Where a debtor, by an agreement with a creditor, sets apart a fixed portion of a specific fund in the hands, or to come into the hands, of another person, whom he directs to pay it to the creditor, the agreement is, when assented to by such person, an appropriation, binding upon the parties and all who, having notice, subsequently claim under the debtor an interest in the fund.
4. A party may, by agreement, create a charge or claim in the nature of a lien on real as well as on personal property whereof he is the owner or in possession, which a court of equity will enforce against him, and volunteers or claimants under him with notice of the agreement.
The facts are stated in the opinion of the Court.