First Nat. Bank of Dallas v. Brown

This case involves the question of whether bondholders are entitled to a receivership on default in the payment of interest, and the validity of a trust deed where the trust agreement under which the bonds were issued provides that the trustee shall have the exclusive power to enforce the security in case of default in the payment of the principal or ⅝ terest.

Buck W. Brown, plaintiff, holder of a bond in the sum of $100, secured the Series A Trust Fund, and of 75 shares of Class C preferred stock of Investment Securities Company of the par value of $100 per share, and also the owner of 524…