American Trust Co. v. Michigan Trust Co.

Prior to July 2, 1925, Detroit-Cleveland Warehouse & Realty Company mortgaged a large amount of real estate, the buildings thereon and appurtenances thereto, together with ‘ ‘ all rents, issues, income and profits thereof” to plaintiffs to secure a bond issue of $1,400,000 6% per cent. 10-year gold bonds, of which $537,800 were retired, leaving $862,200 outstanding at the time foreclosure of the mortgage given to secure the same was commenced. At the same time, Detroit-Cleveland Warehouse & Realty Company mortgaged to the Michigan Trust Company the same property by mortgage subject to the…