Page:Federal Reporter, 1st Series, Volume 1.djvu/456

 448 FEDEEAL EEPOEÏEB. �but the creditors of the Lankrupt, and Shogren's equity of redemption in block five (5) was not destroyed. �The assignee is not governed by the state statute regnlating the proceedings necessary to be followed by a mortgagor or creditors in redeeming. Of course the law prescribing the time within which the right of redemption can be exercised mil apply, and it cannot be extended by the bankrupt courts. Having fuU control over the bankrupt's estate after adjudica- tion, the law itself and the spirit and object of it govern the court in the exercise of its jurisdiction, necessary "to colleet ail the assets of the bankrupt, * * * liquidation of liens, ferent funds and assets, so as to secure the rights of ail par- ties," etc. Section 1, Bankrupt Law. �It is the duty of the bankrupt court to protect the rights and interests of the bankrupt,, as well as the creditors, and secure to the former ail the law allows in the way of exemp- tions, but no more. The assignee had no title by virtue of the assignment to him of the block five, (5,) which was de- clared to be the homestead. �The decision of the bankrupt court did not enlarge the pres- ent interest of the bankrupt in this homestead. His right, title and interest therein were only an equity of redemption, and by the redemption from Torenus and others the assignee held this block subject to this right, and the bankrupt, by proper proceedings, could have had his interest adjusted before he lost it. His homestead right in block 5 was fully recog- nized by the court two months before the time for redemption expired, and the bankrupt made no effort to ascertain the amount necesaary to redeem it. �The homestead exemption act (Minn. Eev. St. § 2) pro- vides that "such exemption shall not extend to any mortgage thereon lawfully obtained." The bankrupt court, on appli- cation, in marshaling the assets, would have, by appraisement or otherwise, fixed the sum necessary to be paid in order to entitle the bankrupt to the homestead, free from ail liens. �Instead of applying to the court, the bankrupt allowed his ��� �
 * * * and to the marshaling and disposition of the dif-