CORPORATIONS-DUTY OF CORPORATE TRUSTEE TO RECORD MORTGAGE SECURING BONDS

Authors

Abstract

Plaintiff became the holder of bonds issued under and secured by a collateral trust agreement executed in Pennsylvania. The mortgage contained the provision that " * * * the trustee, save for its gross negligence or wilful default, shall not be personally liable for any loss or damage" and further that "It shall be no part of the duty of the trustee to record this instrument as a mortgage." The mortgage was not recorded nor the mortgage debt satisfied. Plaintiff sued the trustee in New York for negligence. Held, the contract limited the obligations and duties of the trustee, hence there should be no recovery. Benton v. Safe Deposit Bank (New York, 1931) 174 N.E. 648.

Recommended Citation

CORPORATIONS-DUTY OF CORPORATE TRUSTEE TO RECORD MORTGAGE SECURING BONDS, 29 Mich. L. Rev. 1078 (1931).
Available at: https://repository.law.umich.edu/mlr/vol29/iss8/20