Department of Financial Institutions of Indiana v. Mercantile-Commerce Bank & Trust Co.

LINDLEY, District Judge.

This is an appeal from a decree of foreclosure and sale under a trust deed securing $412,500 and covering a ten-story office and bank building, a part of the assets of appellant Central Union Bank. Appellant Department of Financial Institutions of the *640state of Indiana was in possession of the bank’s assets for the purpose of liquidation under the Indiana statute.

Appellants contend that the res of the bank’s property, including the bank building, fixtures and equipment mortgaged, being in custodia legis in the state court, it was beyond the jurisdiction of the District…