Reichert v. Guaranty Trust Co.

March 1,1926, a mortgage was executed by owners of certain premises to the Guaranty Trust Company of Detroit, as trustee, to secure an issue of bonds. The mortgage contained “an assignment of rents ’ ’ and profits to the trustee in case of default as permitted by Act No. 228, Pub. Acts 1925 (3 Comp. Laws 1929, §§ 13498, 13499). March 6, 1930, the mortgage being in default, the then owners of the equity entered into an agreement with the Guaranty Trust Company, not designating it trustee, whereby they transferred possession of the mortgaged premises, to the trust company, with right to collect…