New York Court of Appeals
New York Security and Trust Company, Respondent v. Saratoga Gas and Electric Light Company, Defendants…
May 2, 1899159 N.Y. 137
Summary
The Court of Appeals held that a corporate mortgage that purports to cover future earnings does not create a lien on those earnings until the mortgagee actually takes possession, so earnings accrued before possession belong to general creditors, not bondholders.