Andrew v. American Savings Bank

The Carroll Country Club was a corporation for pecuniary profit. In 1923 it owned 40 acres of land subject to a first mortgage of $6,000. At that time it desired to improve the grounds by the construction of buildings and otherwise. For the purpose of raising funds therefor, it issued and sold bonds in the sum of $13,300 in various denominations, all of which were secured by a second mortgage upon its real estate; the mortgage being executed to the American Savings Bank as trustee for all of the bondholders. Among other things, the mortgage provided:

“And it is hereby agreed that this mortgage…