First National Bank v. Steneck Title & Mortgage Guaranty Co.

Fielder, V. C.

The Steneck Title and Mortgage Guaranty Company (hereinafter called Title Company), as part of its business, loaned and invested money on real estate bonds and mortgages, many *5if not all of which, it deposited with Steneck Trust Company (hereinafter called Trust Company), as trustee and against the mortgages so deposited the Title Company issued and sold participation certificates and by such certificates guaranteed payment of the principal and interest thereof. June 2Tth, 1931, the commissioner of banking and insurance took possession of the business and properties of both…