RECEIVERS - SITUS OF PLEDGED STOCK FOR JURISDICTIONAL PURPOSES

Authors

Abstract

The assets of Insull Utility Investments, Inc., an Illinois corporation, consisted of stock in other Illinois corporations. This stock was pledged to New York banks by the president of Insull Utility in his representative capacity. Upon receivership of Insull Utility in the federal court in Illinois it was found that the equity of redemption in this stock comprised virtually the corporation's entire assets. The stock having depreciated below the amount of the loan secured, the pledgees took action to foreclose their collateral. Since otherwise the unsecured creditors would take nothing, the receiver sought to enjoin the sale until a better market would insure an equity of redemption. Held, injunction granted. Cherry v. lnsull Utility Investments, Inc., (D. C. N. D. Ill. 1932) 58 F. (2d) 1022. Reversed, Guaranty Trust Co. v. Fentress, (C. C. A. 7th, 1932) 61 F. (2d) 329.

Recommended Citation

RECEIVERS - SITUS OF PLEDGED STOCK FOR JURISDICTIONAL PURPOSES, 31 Mich. L. Rev. 1174 (1933).
Available at: https://repository.law.umich.edu/mlr/vol31/iss8/26