City Bank Farmers Trust Co. v. Hoey

CLANCY, District Judge.

Plaintiff owned five different issues of City of Detroit coupon unsecured bonds, payable to bearer, all of which were in default in the payment of interest and had been purchased after such default. No provision for acceleration of principal on default in interest payments appears on the face of the bond and we conclude, since they were unsecured, there was none. Therefore, we find payment of principal was not yet due. Plaintiff joined with other bondholders in negotiating a plan' for the refinancing and refunding of Detroit’s outstanding bonds and assented to the plan…