In re National Finance & Mortgage Corp.

This is a motion to dismiss an appeal from an order made by the United States District Court. A very general statement of fact will suffice for the consideration of this motion.

Bonds were issued against certain real estate as security for a loan, and the Metropolitan Trust Company, herein referred to as the trust company, holds the property in trust for the bondholders.

The National Finance & Mortgage Corporation, hereinafter referred to as the finance company, acquired the real estate without assuming liability on the bonds. Payment of both principal and interest on the bonded indebtedness was defaulted and state taxes for several years were unpaid, and the trust company advertised the real estate for sale under a power contained in the trust indenture. Within two or three days after publication of the intended sale, the finance company filed a petition with the District Court asking relief under the provisions of section 77B of the Bankruptcy Act, as amended, 11 U.S.C.A. § 207 . The court approved the petition and, upon request of the finance company, the court temporarily restrained the trust company from selling the .property. The court also issued its order to show cause…