Union Trust Co. v. Fletcher Savings & Trust Co.

Appellees were appointed receivers of the insolvent German Investment and Securities Company on July 15, 1918. At the time of such appointment, said insolvent company was indebted to appellant in the sum of $18,000, which was evidenced by a promissory note. Appellant held as collateral security for such debt certain bonds. Appellant filed its claim for the $18,000, and thereafter, and before any distribution whs made by the receiver, appellant sold said collateral security for the sum of $10,000. The question *315for decision is whether appellant is entitled to have its claim allowed for the full…