Pacific States Savings & Loan Co. v. Hollywood Knickerbocker, Inc.

Hollywood Knickerbocker, Inc., a corporation, on July 1, 1929, executed its first closed mortgage 6y2 per cent sinking fund gold bonds in the sum of $750,000 to the Bank of America. That bank has since changed its name to Bank of America National Trust and Savings Association. Seven hundred of the bonds were of the denomination of $1,000 éach and one hundred of the bonds were of the denomination of $500 each. To each bond there were attached thirty interest coupons. To secure the payment of the bonds Hollywood Knickerbocker, Inc., executed to the Bank of America a trust deed. Thereafter this plaintiff became the owner and holder of a number of said bonds aggregating $204,000. The intervening defendants thereafter became the owners of bonds in the aggregate sum of $426,500. That is, the plaintiff became the owner of more than 25 per cent of said bonds and the interveners became the owners of 36 per cent of the outstanding bonds. Defaults in the payment of interest on all of said bonds were made on July 1, 1932, and January 1,1933. Defaults in the payment of taxes and other defaults also occurred. On July 29, 1932, the plaintiff gave notice in writing to the trustee and made a…