Rea v. Pennsylvania Canal Co.
Rea v. Pennsylvania Canal Co.
Opinion of the Court
The coupons presented by The Pennsylvania Railroad Company for. payment out of the proceeds of the sale of the mortgaged premises have priority over the bonds from which they were detached: Rea v. Pennsylvania Canal Company, 245 Pa. 589. This preference extends to the interest due on the coupons, for, while compound interest cannot, as a rule, be recovered in this State, “In the case of coupon bonds the coupons may be detached from the bond when due, and if not paid at maturity interest may be recovered thereon by the holder. (Town of Genoa v. Woodruff, 92 U. S. 502; Philadelphia & Reading R. R. Co. v. Smith, 105 Pa. 195; North Penna. R. R. Co. v. Adams, 54 Pa. 94; Beaver County v. Armstrong, 44 Pa. 63; Philadelphia & Reading R. R. Co. v. Fidelity Ins. Trust & Safe Deposit Co., 105 Pa. 216)”: Philadelphia & Reading R. R. Co. v. Knight, 23 W. N. C., 215.
Decree affirmed at appellants’ costs.
Reference
- Full Case Name
- Rea, Trustee v. Pennsylvania Canal Company
- Cited By
- 4 cases
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- Published
- Syllabus
- Corporations — Mortgages — Coupons — Interest on coupons — 'Priority. Where a corporation mortgage provides that'upon foreclosure the coupons on the bonds secured by 'such mortgage shall- be paid in priority to tbe bonds, tbe bolder of coupons detached from the bonds is entitled to priority not only for tbe face value of tbe coupons but for interest upon each coupon from its due date to tbe date of payment.