In re the Liquidation of Bond & Mortgage Guarantee Co.

The dispute here is primarily between the certificate holders in the above guaranteed mortgage, represented by petitioners Lifshutz, and the creditors of the insolvent guarantor, Bond and Mortgage Guarantee Company, represented by the Superintendent of Insurance (hereinafter called the “ Superintendent ”) as liquidator. The certificate holders claim they are entitled to the difference between the reasonable cost of servicing the mortgage and the one-half of one per cent which the Superintendent, as rehabilitator, and thereafter the Mortgage Commission, retained.

■ In 1931 petitioners purchased…