HOUSTON V. CITY BANK OF NEW ORLEANS, 47 U. S. 486 (1848)
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U.S. Supreme Court
Houston v. City Bank of New Orleans, 47 U.S. 6 How. 486 486 (1848)
Houston v. City Bank of New Orleans
47 U.S. (6 How.) 486
Syllabus
The district court of the United States, sitting in bankruptcy, had power to decree a sale of the mortgaged property of a bankrupt, and if there are more mortgages than one, and the proceeds of sale are insufficient to discharge the eldest mortgage, the purchaser will hold the property free and clear of all encumbrances arising from the junior mortgage.
The facts in the case are fully set forth in the opinion of the Court.