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Court Clears Steneck Liquidation Muddle Fielder Hands Down Opinion Determining Right of Mortgage Participation Certificate 15 Other Questions. the of long step affairs the defunct Steneck Title and Guaranty Hoboken, taken today James Fielder handed down 23-page opinion rights mortgage participation certificate holders 15 other questions which answering First National have Bank Hoboken Rufus Beason, substitute trustees for the company. Foremost the court's concludecjsion that all certificate regardless the form their certificates, share the the underlying mortgages contended certificate holders the certificates held by type entitled them share specific mortgages, but the vice-chancellor has decided provision was the trust agreement the company Steneck Trust issued the certificates, the issuance certificates on specific mortgages. of certificates were isTwo types trust on behalf sued by company of the title company, known certificates the other The certificertificates. indicated they were backed cates all by the by mortgages with trust certificates pany, being similar the to added certificates that represented signment of share particular mortgage of mortgages. The were unable decide rights of each group and the was placed before the court The court "These D certificates issued without any corporate act the title authorizing and to the provisions the trust Neither the nor the trust the against the holders and the terms the trust by issuing certificates Blue certificates are similar form certificates. vice-chancellor conclusion that the holders certificates are not entitled to preference in payment out particular described certificate that must stand in the same position all other certificate holders and rata all mortgages their proceeds) deposited with the trust This conclusion. court will greatly facilitate liquidation. Answering questions, the court said the trustees from properties mortgages water, rents, foreclosure proceedings and for repair. Instructions also given for the legal form which are be undertaken and the manner which compromise may be made where there are deficiencies mortgage bonds. The substitute trustees are also given the right extend payment mortgages, to alterations property in trust for the holders. They are allowed to insure property. may giving notice. They and property, lease should made for longer one notice be given They empowhire estate agent to handle trust property accept municipal scrip bonds rent principle mortgage Home Loan poration bonds acceptable in mortgages, the court hold jurisdiction the liquidation the title that other quessettled. The title company closed along with the Steneck Trust Co. June 1931, by the then Banking and Frank H. banking commissioner remained trustee for title supplanting trust until when the court appointed the First National Bank Besson : substitrustees. The substitute trustees hold bonds and totaling nearly 200,000 have gages for $162,000. The amount of participation certificates issued and outstanding