Page:Federal Reporter, 1st Series, Volume 7.djvu/525

 UNION TBXJST CO. OF N. Y. ». 0, & L. H. B. CO. 613 ���Union Teust Co. of New Yoek ». Chicago & Lake-Hubom �E. Go, �[Circuit Court, E. D. MiMgan. June 6, 1881.) �1. Reckiveeb' Cebtutcatbs — NixioTiAErLiTT. �Receivers' certiflcates are not ordinarily negotiable. Whare a le- ceiver, acting under a special order of the court, issued a certiflcate and placed it the hands of the payee named therein for negotiation and sale, and the same subsequelltly came into the hands of the petitioner, who purchased it, of a third party for40 per cent, of ita par value, and with notice of the order under which it was issued, Md, that he took it subject to tll equities between the receiver and the payee, and that, as it appeared that the latter had never accounted to the receiver for the certiflcate or its proceeds, the petitioner was not entitled to payaient. The negotiation and sale of certiflcates is a trust Personal to the receiver ; he cannot delegate it to another and relieve himself from responsibility. �In Equity. �This was a petition by the holder of a receiver's certiflcate for payment from the proceeds of the sale of the Chicago & Lake Huron Eailroad in the hands of the court. The facts of the case -were, substantially, that on the twenty-fifth of June, 1877, the court made an order, by which, after reciting that William L. Bancroft, the reCeiver of Hhe road, was largely indebted to Tarions parties, and that no means existed to pay off and reduce said indebtedness, but that the same could be paid by the sale of receivers' certifieates, the receiver was authorized and empowered to make, sell, and issue his receiver's certifieates for the purpose aforesaid, to an amount not exceeding the sum of $51,181.19, in such sums as he should deem expedient, payable at not exceeding one year from the date thereof, and bearing interest at not exceeding 10 per cent, per annum ; the same to be paid out of the surplus earnings of the western division of said rail- road, after paying the operating expenses of said division, and the expenses of maintaining the same, with its equip- ments; said certifieates to be a preferred charge and lien, etc., payable before any payments or distribution of the pro- ceeds of sale should be made to the holders of any mortgage �v.7,no.5— 83 ��� �