Page:Federal Reporter, 1st Series, Volume 6.djvu/116

 lOe FEDERAL REPORTER. �constitute a part qfthe debt secured therehy. Again, in another part of the decree, it is deolared that "the sum of $860,260 was issued to secure past-due interest coupons on said first mortgage, and is secured by said first mortgage as aforesaid;" and, as we have already seen, it is further provided that the purchase money on the bid "may be paid in cash or in said first mortgage bonds, or such of said second mortgage bonds as are by this decree held to be secured by said first mortgage," It is dear, therefore, that the second mortgage bonds to the amount of $850,260 are simply placed on the same footing as the first mortgage bonds — not as having a preference over the latter, but as being equally secured under the first mort- gage with the first mortgage bonds. There was, therefore, no greater or other reason why; the decree should provide for a cash payment on the bid of a purchaeer sufficient to cover the $850,260, than there was for a cash payment adequate to cover the en tire amount of the first mortgage bonds. �2. The mortgages provided that in case of default in pay- ment of either the principal or interest due on the bonds secured thereby, and on written request of the holders of a specified proportion of the bonds, the trustee might sell the mortgaged property ; and it was therein further provided that "the amount of the bid or purchase money of said sale may- be paid and satisfied in whole or in part by the outstanding mortgage bonds, or any of them, issued hereunder, and the same shall be taken and received in whole or in part pay- ment and satisfaction by the party of the second part, ita successor, or successors, aecording to their value, to be ascer- tained and determined by the net amount arising from such sale as compared with the amount of outstanding bonds issued hereunder as aforesaid." �The decree, as we have before observed, provides that after payment of $25,000 in cash of the sum bid at the sale under the decree, the purchaser may pay, the balance of his bid in outstanding bonds and coupons, secured by the first mort^ gage, "at such percentage of the face value thereof as this court shall, at the approval of said sale, authorize and direct." �Now, it is alleged in the petition that the decree is erro- ��� �