88 N.J. Eq. 245 | New York Court of Chancery | 1917
The mortgage was made June 1st, 1916, to secure the sum of $27,000, payable in one year. The premises mortgaged consist of three tracts; upon one of the tracts there is a prior mortgage of $5,000. On August 1st, 1917, the property was conveyed by the then owner to Frederick J. Collins, a real estate broker in the city of Newark. There is erected on the land three six-family apartment-houses. The gross rent amounts to $4,692 a year. To protect itself the complainant must take care of encumbrances aggregating $32,000. A bill to foreclose was filed September 27th, 1917. A technical objection is made, that there was not served upon the defendant Collins a copy of the bill of complaint. The order to show cause does not
I have concluded to appoint as receiver the present owner, Frederick J. Collins, under a bond of $5,000. By such an appointment every right of the mortgagee and the owner will be protected. The objection that the appointment of a receiver may interfere with a sale is removed and counsel is unable to suggest any other way in which he could be injured.
I understand that an appeal is to be taken from the order appointing a receiver. If there is any question in counsel’s mind as to whether such an appeal will prevent the immediate operation of the order, I will hear an application under the. doctrine of Ashby v. Yetter, 78 N. J. Eq. 173, for an order to put it in force, notwithstanding the appeal.