Mercantile Trust Co. v. Sunset Road Oil Co.

This is an appeal by the defendants above named from an order granting a motion of the Kern Valley Bank and W. R. Williams, superintendent of banks, for a new trial of the action.

The complaint states a cause of action for the foreclosure of a mortgage executed to secure bonds issued by the Sunset Road Oil Company. The Sunset Road Oil Company was organized in June, 1905. In the early part of July, 1905, it authorized the creation of a bonded debt of two million dollars, to be evidenced by 1,990 bonds for one thousand dollars each, and one hundred bonds for one hundred dollars each, running twenty years at five per cent annual interest. On July 15, 1905, it duly executed to the plaintiff, Mercantile Trust Company of San Francisco, a deed of trust or mortgage to secure the payment of the proposed bonds, transfer ring and conveying to the Trust Company for that purpose certain parcels of property in Kern County, and also all other property, real and personal, which said Oil Company then owned or might thereafter acquire. In pursuance of this mortgage or trust deed, bonds were prepared for issuance and a large number of them, amounting to one million, four hundred and ninety-five…