Court of Appeals for the Sixth Circuit July 15, 1925, No. 4357 (National Surety Co. v. Brown-Graves Co.)

MOORMAN, C. J.

The Wade Chateau Co., for the purpose of erecting a building, issued bonds in the amount of $100,000 secured by a mortgage issued to the Guardian Bank as trustee for the bondholders. In the deed of trust there was a clause providing that the Wade Chateau Co. furnish a bond in amount of $50,000, to secure the bondholders from liability on any mechanics liens.