The defendant bank had a mortgage over land in Florence belonging to a company in liquidation. The liquidator of the company applied to the court to restrain the bank from realising its security.
Held: The application failed. Jessel M.R. summed up the options of a secured creditor and contrasted the new form of floating security with a ‘specific charge’ on the property of the company: ‘In bankruptcy, if a secured creditor wants to prove, he must do one of three things: he may give up his security altogether and prove for the full amount, or he may get his security valued and prove for the difference, or he may sell and realise his security and then prove for the difference.’
Judges:
Jessel MR
Citations:
(1879) 10 Ch 681
Jurisdiction:
England and Wales
Cited by:
Cited – Cleaver, Bodden v Delta American Reinsurance Company PC 1-Feb-2001
(Cayman Islands) In the course of trading the company had given security to carry on its insurance business. On its insolvency, the administrators required the creditor to bring into hotchpot credit received in a foreign jurisdiction. It was said . .
Lists of cited by and citing cases may be incomplete.
Banking
Updated: 28 April 2022; Ref: scu.181832