Katerndahl

National Thrift Corporation, now a bankrupt, conducted a business of marketing securities of its own which it sold under the various names of “thrift certificates, bonds, annuities, and contracts.” It appointed, by. an instrument in writing, Title Insurance & Trust Company, as trustee to hold securities to be deposited by it, for the protection and liquidation of the obligations referred to. The instrument was lengthy and the obligation of the thrift corporation was to see that at all times there was in the hands of the trustee sufficient securities, mortgages, etc., to protect the trust. Its obligation was to see that the interest was paid on such mortgage securities; also taxes. The trust instrument provided that in ease of default in the obligations of the thrift corporation, the trustee should have the right, upon the request of holders of securities to the amount of 25- per cent, of the total aggregate of principal of said securities, to proceed to sell the security property held in trust and apply the proceeds in satisfaction of the obligations held by the purchasers of the bonds, certificates, annuities, etc. One of the events which it was provided would give the trustee…