Masonic Widows' & Orphans' Home & Infirmary v. Title Insurance & Trust Co.

Opinion of the Court by

Judge Eees

Affirming in part and Eeversing in part.

This appeal grows out of the insolvency of the .Louisville Title Company, which was placed in the hands of a receiver on June 22, 1931. The title company made loans secured by mortgages on real estate, and sold to investors the bonds executed by the borrowers. The title company guaranteed these bonds. It issued two classes of bonds; direct mortgage bonds, and sinking fund bonds. At the time of the receivership there were outstanding in the hands of investors bonds of each class to the amount of about $7,000,000. In the…