(DOWNLOAD) "Worcester Bank & Trust Co. v. Nordblom Et" by Supreme Judicial Court of Massachusetts * Book PDF Kindle ePub Free
eBook details
- Title: Worcester Bank & Trust Co. v. Nordblom Et
- Author : Supreme Judicial Court of Massachusetts
- Release Date : January 30, 1933
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 72 KB
Description
LUMMUS, Justice. The plaintiff is a Massachusetts trust company, in the possession of a conservator under St. 1933, c. 87 (G. L. c. 172, §§ 83-89). The trustees of the Worcester Investment Trust, hereinafter called the defendants, owning the Worcester building in Worcester, gave a mortgage thereon in 1923 to the plaintiff as trustee for bondholders to secure an issue of bonds of $800,000. The mortgage indenture provided that twice a year the defendants should make specified payments into a sinking fund to be held by the plaintiff as trustee, to be used from time to time to retire bonds. The conduct of the plaintiff as trustee of the sinking fund was regulated by the second, third and fourth paragraphs of article 2, § 2, of the mortgage indenture, which read as follows: The Trustee shall deposit, as a special fund or funds any and all sums, including payments into the Sinking Fund, which may be at any time received by it under any of the terms or provisions of this Indenture, in such bank, banks or trust companies, including its own banking department, as it may in its reasonable discretion select. The Trustee shall account for all interest actually received by it upon deposits made by it in other banks or trust companies, as stated above, and shall allow interest upon all deposits made, as above stated, in its own banking department, at such current rates as are then allowed in the City of Worcester on similar deposits; but, except as above stated, the Trustee shall not be bound to account for or pay any interest upon payments made to it hereunder, and it shall not incur any liability except for the amounts actually deposited with and received by it. All funds, whether sums paid into the Sinking Fund or otherwise, at any time paid to or deposited with the Trustee or held by it under any of the provisions of this Indenture, shall be held by the Trustee as agent for the Grantors, hereby irrevocably appointed, to be used by it in accordance with the terms of this Indenture and in accordance with law, and no such funds shall be security for the bonds secured by this Mortgage or Deed of Trust.' The bill, the truth of which is admitted by the answers, shows that the plaintiff as trustee under the mortgage indenture received for the sinking fund various payments which it deposited in an account in its own commercial department, designated as 'Worcester Bank & Trust Company, Trustee, Worcester Investment Trust, Sinking Fund.' The plaintiff allowed interest thereon at the current rate paid in the city of Worcester on similar deposits. The amount on deposit in that sinking fund account on March 4, 1933, was $29,055.92. During the entire period of the receipt by the plaintiff of sinking fund and other payments from the defendants, up to the time of the segregation of the amount in question hereinafter described, the cash available for the payment of deposits in the commercial department never fell below the total amount of such sinking fund and other payments deposited by the plaintiff in that department. The plaintiff always maintained a trust department, and all sinking fund and other payments received by the plaintiff as trustee were entered on the books of the trust department before being deposited in the commercial department. The entire record, including the plan of reorganization hereinafter described, is silent as to the existence of any savings department, and it may fairly be inferred that there was none.