Union Guardian Trust Co. v. Building Securities Corp.

ON REHEARING.*

* See ante, 144. — REPORTER. The decree is in accord with the provisions of the indenture and is affirmed.

Giving the provisions of the indenture reasonable construction discloses express power in the trustee to bid and purchase, at the foreclosure sale, in behalf of all the bondholders, whose interest he is bound to protect, without personal possession of the bonds. Such purchase by the trustee does not divest the trust but only vests the legal title in the trustee for the benefit of the bondholders, who thereby become the equitable owners of the res. The inchoate right to the…