Kelly v. Middlesex Title, C., Trust Co.

The above named defendant company (hereinafter called the Middlesex Company) in addition to the usual business of a trust company was also engaged in the business of loaning or investing moneys on real estate bonds and mortgages, which it thereafter sold and assigned to investors, accompanied by its own guarantee of payment. Such sales and assignments were sometimes of the whole of such a bond and mortgage; and sometimes of only a part interest in such a bond and mortgage — by a so-called "participation certificate."

One such bond and mortgage in the principal sum of $12,500, covering a single…