Fayette Realty & Finance Co. v. Commonwealth

Opinion of the Court by

Commissioner Stanley

Reversing.

The appellant, Fayette Realty & Finance Company (to be referred to as the realty company), was incorporated in 1914, with $1,000 common stock, and $230,000 of 5 per cent, cumulative preferred stock, convertible at the option of the holders into 5 per cent, first mortgage bonds. On May 25, 1924, the realty company acquired by deed the Fayette National Bank building in Lexington for $230,000 cash, and other valuable consideration agreed to be paid. On the same day it mortgaged the building to the Security Trust Company of Lexington, as…