Camoia v. City of New York

In June, 1965, the bankrupts had mortgaged to the City of New York the premises at 916 Kelly Street, Bronx, as security for an indebtedness of approximately $121,000. The mortgage granted to the City a further security interest in rents derived from that building.1 After the mortgagors were adjudicated bankrupt in November, 1966 and a bankruptcy trustee took over the operation of the building, the referee authorized the mortgagee to initiate an action to foreclose the defaulted mortgage. Pursuant to this order the mortgagee obtained a state court judgment of foreclosure and sale in the amount…