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2 Erie Cnty. B. Bull. 1 (1934-1935)

handle is hein.baecl/ericoubarb0002 and id is 1 raw text is: Eri (founty iar Builetin

October 10, 1934

BULLETIN BEGINS
SECOND YEAR
In this issue the Bulletin Committee points
out the interesting decisions rendered since
June 1, 1934. Some have been published in the
reports; some have not. At this time, however,
since the summer has attractions more pleasant
than the reading of advance sheets, completeness
has been deemed a service to the members of
the bar.
Correspondence on subjects of interest to law-
yers is invited. What practical and legal prob-
lems currently perturb the bar? Excerpts from
letters having general interest will be published
in the discretion of the Bulletin Committee.
The Bulletin at all times welcomes comment,
criticism, and suggestions.
LEGISLATION
Recent amendments to the Civil Practice Act,
Stock Corporation Law, and Executive Law per-
mitting service on domestic corporations by de-
livery of process to the Secretary of State should
be noted by all attorneys. These amendments
become effective January 1, 1935, and corporate
clients should be advised to file before that date
a certificate designating an address to which such
process is to be forwarded by the Secretary of
State.
Recent amendments to the Civil Practice Act
include the following:
New Section 977-a, in effect August 31, 1934,
provides that where no answer affecting the
validity of the mortgage or the amount due is
interposed in a foreclosure action, the court may
direct the receiver to apply money collected by
him toward payment of accrued interest on the
indebtedness.
Sections 1389, 1391, and 1394 are amended
and a new section 1395-a is added, permitting
the mortgaging of property belonging to an in-
fant or incompetent without the appointment of
a guardian or committee where the Home Owners
Loan Corporation is the proposed mortgagee.
New Section 1077-cc, added August 24, 1934,
provides that during the emergency period, the
maturity of an obligation originally contracted

in connection with a mortgage on real estate
shall not in any event increase the rate of in-
terest on such obligation.
Section 1087 was amended August 31, 1934
so that a judgment in a foreclosure action may
provide that the referee need not pay taxes out
of the proceeds of the sale.
New Section 1087-a permits a referee on a
foreclosure sale to accept a purchase money
mortgage as part of the purchase price under
certain specified conditions.
New Section 35-e of the Tax Law imposes a
1% emergency tax on net incomes for one year
(1934).
Surrogate's Court Act Section 285-2, in effect
August 24, 1934, provides for certain additional
commissions to executors, administrators, and
trustees for servicing bonds and mortgages dur-
ing the emergency period.
By Chapter 914 of the Laws of 1934, banks
and insurance companies are permitted to make
loans on the security of guaranteed mortgage
certificates during the existence of the emergency.
REAL ESTATE
RECEIVER UNDER FIRST MORTGAGE
NOT ENTITLED TO UNPAID RENTS AC-
CRUED BEFORE HIS APPOINTMENT AS
AGAINST SECOND MORTGAGEE HAVING
ASSIGNMENT OF RENTS.-The vigilance of
a second mortgagee who entered into possession
of the mortgaged premises under an assignment
of rents, prior to the foreclosure of and appoint-
ment of a receiver under the first mortgage, was
rewarded in New York Life Ins. Co. v. Fulton
Development Corp. The receiver claimed the
rents which were past due and unpaid at the time
of his appointment. His claim was rejected upon
the ground that the receiver could collect only
such accrued and unpaid rents as were due to
the owner, but not those title to which had
passed to a third party. A. D. 1st Dept., May
4, 1934. An appeal has been taken to the Court
of Appeals.
LANDLORD ENTITLED AS AGAINST RE-
CEIVER TO ACCRUED UNPAID RENT. -
In North Jefferson Corp. v. Moylan, City Court

Vol. II-Page 1

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