American Bridge Company v. Heidelbach - 94 U.S. 798 (1876)
U.S. Supreme Court
American Bridge Company v. Heidelbach, 94 U.S. 798 (1876)
American Bridge Company v. Heidelbach
94 U.S. 798
1. A company, to secure the payment of its bonds, mortgaged its property, and the rents, issues, and profits arising therefrom, with the provision that, if there was default in paying the interest, the mortgagee might take possession of the property, manage the same, and receive and collect all rents and claims due and to become due to the company. Default was made, and the mortgagee, in November, 1874, filed his bill setting forth that the company had on hand moneys and claims due to it, both of which he prayed might be applied to his mortgage. An execution upon a judgment, which B. had against the mortgagor, having been sued out and returned nulla bona, he, in December of that year, filed his bill to subject such moneys and claims to the payment of his judgment. Held that inasmuch as the mortgagee had not taken possession, his claim to the earnings and income on Land at the time of filing his bill must he postponed to that of B.
The facts are stated in the opinion of the Court.