CORPORATIONS-VALIDITY OF DEFAULT PROVISIONS IN TRUST MORTGAGES

Authors

Abstract

Ordinarily a secured creditor can take action to protect his claim against his debtor. When, however, the creditor is only one of many whose claims are equal in lien and right, it may be undesirable that any single creditor should be able to take independent action. This fact has led draftsmen to insert in corporate mortgages provisions limiting the rights of minority bondholders to take action in the event of default under the mortgage. The use of such provisions has created an apparent hotbed of judicial dissension.

Recommended Citation

CORPORATIONS-VALIDITY OF DEFAULT PROVISIONS IN TRUST MORTGAGES, 31 Mich. L. Rev. 86 (1932).
Available at: https://repository.law.umich.edu/mlr/vol31/iss1/9