UNITED STATES SUPREME COURT DECISIONS ON-LINE

While a railroad was in the hands of a receiver, appointed in a suit for the foreclosure of a mortgage upon it, the court authorized the receiver to borrow money and to issue certificates of indebtedness, to be a lien upon the property prior to the mortgage debt, and to part with them at a rate not less than ninety cents on the dollar. The receiver borrowed money on hypothecation of some of these certificates. The property was decreed to be sold subject to liens established on then pending references. Held that the hypothecated certificates were not liens to the extent of their face, but that a decree directing the debts secured by them to be paid in them at the rata of ninety cents on the dollar to the extent of the money actually advanced, and making that amount of certificates a lien, would be upheld in equity. clubjuris

Page 110 U. S. 603