In re the Liquidation of Lawyers Mortgage Co.

The fund to which the present application relates was never part of the security to which the certificate holders were entitled to resort for payment of their claims, and the decision of the United States Supreme Court in Ticonic National Bank v. *577Sprague (308 U. S.-) is, therefore, inapplicable here. In Matter of Lawyers Mortgage Co. (22-34 Arden St.) (168 Misc. 810, 812), relied upon in opposition to this motion, this court, as its opinion indicates, granted the application of the trustee only “ in so far as it seeks permission to apply the moneys distributable on the subordinate equity…