Reconstruction Finance Corp. v. Eastern Terra Cotta Realty Corp.

Plaintiff loaned to defendant Eastern Terra Cotta Company, hereinafter referred to as Terra Cotta, the sum of $150,000, payment of which was secured, in part, by the pledge by Terra Cotta, as owner, of all the shares of the capital stock of defendant Eastern Terra Cotta Realty Corporation, hereinafter referred to as Realty Corporation, a domestic corporation. Thereafter, Realty Corporation, by one Dalton, as its president, conveyed its sole asset, a parcel of realty, to Terra Cotta, of which Dalton also is president. The effect of the conveyance, if upheld, is to render the pledged shares of…