Sexton v. Dreyfus, 219 U.S. 339 (1911)

Sexton v. Dreyfus

No. 662, 663

Submitted January 6, 1911
Decided January 23, 1911
219 U.S. 339

APPEALS FROM THE CIRCUIT COURT OF APPEALS

FOR THE SECOND CIRCUIT

Syllabus

Under the Bankruptcy Act of 1898, a secured creditor selling his securities after the filing of the petition must apply the proceeds, other than interest and dividends accrued since the date of the petition, first to the liquidation of the debt with interest to the date of the petition; he cannot first apply such proceeds to interest accrued since the petition.

A secured creditor of a bankrupt can apply interest and dividends accruing on the securities after the date of the petition to interest on the debt accruing after such date.

The English rule and authorities discussed and approved.

180 F. 79 reversed.

The facts, which involve the construction of certain provisions of the Bankruptcy Act of 1898, are stated in the opinion.