Equitable Trust Co. v. Barlum Realty Co.

This is an action to foreclose a trust mortgage. The controversy we are to resolve is focused on a provision of the foreclosure decree' authorizing’ the trustee- under the mortgage indenture to bid for the property at the judicial sale on behalf of all the holders of outstanding bonds, and to satisfy the bid by crediting the mortgage debt, without production of the bonds secured by the mortgage.

In June, 1928, the Barium Realty Company, John J. Barium and Julia M. Barium executed to the Federal Bond & Mortgage Company, Incorporated, a Virginia corporation, a trust mortgage to secure a…