In re Gillette

The receiver appointed herein, and authorized to have possession of the property of the alleged bankrupt pending hearing on the involuntary petition, has asked that the Union Mortgage Compay, as beneficiary, and the Title Guaranty & Trust Company, as trustee, be restrained from selling certain real property in which it is claimed the alleged bankrupt has some interest. Certain affidavits have been filed in support of the petition of the receiver touching the value of the property affected, from which it would appear that there is a large equity over and above the amount of the debt secured by the trust deed.

The principal contention made by the receiver, however, is (and he alleges his information in support thereof) that the transaction by which the Union Mortgage Company became possessed of the trust deed was tainted with usury. Assuming that to be a fact, it is insisted that the receiver is entitled to have all proceedings of sale under the trust deed stayed until the maturity of the principal obligation, which event will not occur for more than a year. It is because of the-default in interest and tax charges that the Union Mortgage Company is proposing to foreclose the…