The clalm Roberts Is evldencea a wrltten instrument, draft, or order, which reads as follows On the day thls loan was made, a resolution was passed the board of direetors authorlzing the execution this writing, which resolution was duly recorded in the minute bools the corporation. The cause was referred a master, and the facts relative her clalm were reported the master as A corporation, known as The Callfornia Nevada Railroad Company, was organlzed under the laws the state Callfornia, day March, for the purpose constructlng and operating a railroad from the city Oakland, the state line between the state Callfornia and the state Nevada, at or near the town Bodle, a distance miles.
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Sald railroad company got rlghts way, graded some miles road, and laid miles rails.
thesis consultant On the lOth day September, Mary Roberts loàned or advanced sald railroad company the sum, upon the representation John Davis, one the promoters and president sait! company, that the money was needed push the working the road, and recelved therefor a demand upon the treasurer said company for the sum of, payable out the proceeds the sale the flrst bonds sold this company.
Thereafter, day March, a new corporation waf organlzed, called the Callfornia Nevada Railroad Company.
The new corporation was composed nearly the same persons as the flrst company, and was buy research paper online organlzed for the same purposes.
The flrst corporation, day March, sold and transferred the second company its entire road and properties. As a part the consideration the transfer, the second best site to buy research paper company agreed assume ail the outstandlng obligations the flrst company. Thereafter, the 0th day April, the second company, having acquired possession ail the property the flrst company as aforesaid, executed a mortgage or deed trust the Central Trust Company New York, the complalnant in this action, which mortgage covered ail the property then owned or which mlght thereafter acquired said company. Said mortgage was given secure the payment, bonds, issued said railroad company, the denomination, each, payable years, with Interest at the rate, per annum, payable semiannually, to pay for the construction, equlpment, and completion the railroad. In pursuance gald deed trust or mortgage, the bonds were issued said railroad company. The railroad company having made default in the payment said bonds, this action was brought the trustee foreclose the mortgage.
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On the day June, action was commenced In the Buperior court the city and county San Francisco, Mary Roberts, upon the wrltten instrument aforesaid, recover the sum, and interest. A writ attachment was Issued and levied upon the whole property said railroad company.
Sald attachment bas not been discharged, and said action still pending.
The defendant Mary Roberts in her answer treats that may adjudged that the defendant railroad company Is Indebted to her in the sum, with interest, and that the lien acquired her under the writ attachment aforesaid Is a prlor lien upon the properties the sald railroad company any and ail bonds Issued after June, the date of the levy the attachment aforesaid. The contention appellant that the claim Roberts constitutes an equitable lien upon the property mortgaged, and takes priority in marshaling the assets over ail the bondholders, because before the mortgage was given she had an assignment the proceeds ihe first bonds solcl this company and she claims that the Central Trust Company took the mortgage with notice this equitable assignment her, and that when the paraphrasing a sentence first bonds were sold the proceeds must regarded in equity as a fund having impressed a lien newsletter writing service in the nature a trust virtue the equitable assignment held her. It not claimed that any bonds were issued prior the execution of the mortgage herein sought foreclosed. The mortgage was given secure the issuance bonds. There never was any sale of bonds for money. There were no cash subscriptions letter writing services for the bonds. They were ail issued contractors for construction academic writing service uk or repair work, or for salaries and professional services. There were bonds issued, but that number only bonds were found the master have been legally issued. Under the facts this case became necessary execute the mortgage in order secure the issue the bonds. When the new corporation was organized, assumed ail the outstanding obligations the old corporation, and undoubtedly the new corporation liable, in a proper proceeding, for the payment that debt.
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