CONFLICTS OF LAW-NEGOTIABLE INSTRUMENTS-SITUS OF BEARER BONDS

Authors

Paul M.D. Harrison S.Ed., University of Michigan Law SchoolFollow

Abstract

By a Vesting Order, the Alien Property Custodian vested in the Attorney General property of an enemy alien which consisted of a "certain debt or other obligation" underlying bonds issued by the defendant corporation. The defendant corporation was ordered to cancel the said bonds and deliver the proceeds of the redemption and accrued interest to the Attorney General. Upon the trial of the action brought by the Attorney General to enforce these demands, it appeared in evidence that the bond certificates had last been located in the Russian sector of Berlin, Germany, and were there seized by the occupying authorities. In finding for the defendant, the court held that the statutory and administrative authority for the Vesting Order extended only to property within the jurisdiction of the United States. The vesting of the obligation of the bonds in controversy was not authorized, since the bond obligation is at the same place as the certificate. McGrath v. Cities Service Co., (D.C. N.Y. 1950) 93 F. Supp. 408.

Recommended Citation

Paul M. Harrison S.Ed., CONFLICTS OF LAW-NEGOTIABLE INSTRUMENTS-SITUS OF BEARER BONDS, 49 Mich. L. Rev. 1064 (1951).
Available at: https://repository.law.umich.edu/mlr/vol49/iss7/9