Marin v. Calmenson

Lees, C.

This suit was commenced by the Moyer Manufacturing Company, a Minnesota corporation, to avoid a trust deed it had given to secure a bond issue of $75,000, evidenced by 750 bonds each for the sum of $100, and to enjoin the foreclosure of the deed. The present plaintiff was substituted when the company was adjudged a bankrupt. The trial court found for the defendants and the trustee has appealed from the judgment.

By its amended articles of incorporation, a limit of $125,000 was placed upon the indebtedness of the corporation, and the limit had been exceeded when the bonds were issued.…