Plaintiff was the owner of bonds issued by the defendant real estate corporation which were secured by real estate mortgages in the control of a trustee under a trust indenture to which reference was made in the bonds. The indenture provided, "no holder . . . shall have any right to institute any suit, action or proceeding at law or in equity or take any other steps or proceedings for any remedy hereunder," unless 25 per cent of the holders shall have requested the trustee to exercise the powers granted and the trustee thereafter fails or refuses to proceed. Plaintiff, without alleging demand and refusal of trustee, petitioned for the appointment of a receiver on the ground that the defendant was insolvent, improperly managed, and that the trustee was hostile to interests of bondholders. There had been no default whatsoever on the bonds, but there was evidence of general insolvency and previous mismanagement. Held, limitations on bondholder's rights to judicial recourse apply only to proceedings for collection, and not to a receivership where a holder seeks only to protect his equitable rights, and particularly where the trustee appears antagonistic. Ramsey v. Home Mortgage Co. (E. D. N. C. 1931) 47 F.(2d) 621; reversed (C. C. A. 4th, 1931) 49 F.(2d) 738.