1946, and on $ 4,704.97 from November 1, 1945. To collect this judgment the plaintiff attached the defendant's property in the possession of the Keystone National Bank of Manheim, Pennsylvania (hereinafter called Bank), and had the Bank brought in as garnishee. This case is now before me on the plaintiff's motion for summary judgment against the garnishee.
The Authority was organized pursuant to the Municipality Authorities Act of 1935, as amended,
and owns the sewage system in and about the Borough of Manheim. The Borough, however, operates the system under a lease agreement with the Authority.
The Authority decided to install and had partially constructed a modern sewage disposal system in Manheim. To pay for the cost of completing its construction, the Authority in 1944 authorized a $ 500,000 bond issue.
On September 1, 1944 the Authority entered into a perpetual trust agreement with the Bank whereby the Authority sold, assigned, transferred set over and pledged to the Bank, as trustee, its successors and assigns, all right, title and interest of the Authority in and to the sewer lease with the Borough of Manheim.
In addition to the covenants usually found in such an instrument, the Authority convenanted in Article II to deliver the bonds to the Bank, and in Article III to construct the new sewer system.
On September 13, 1944 Berlanti entered into a contract with the Authority for completing the construction of the sewer system. On September 21, 1944 the trust indenture was filed with the Recorder of Deeds in Lancaster County.
The judgment in favor of Berlanti against the Authority, which was entered earlier in this action, was for $ 16,473.30 balance due on that construction contract, $ 457.50 balance due on a contract of March 12, 1945 to load and haul surplus fill, and $ 4,247.47 balance due on a contract of July 30, 1945 to replace macadam road which was torn up by the construction of the sewer system.
From the sale of the bonds the Bank realized $ 500,534.70. In accordance with the terms of the trust agreement, $ 191,913.95 was used to pay the prior outstanding obligations and bonds of the Authority, and $ 283,363.21 was used to pay some of the construction costs of the sewer system.
The Bank now has on hand a balance of $ 25,257.54 left from the sale of the bonds and rental income from the lease amounting to $ 9,973.75, which has been segregated by the Bank as follows:
Sale of Rental
Construction Fund $ 3,132.54
Reserve Fund 20,000.00 $ 1,200.00
Retirement Fund 2,125.00 950.00
Bond Fund 7,823.75
$ 25,257.54 $ 9,973.75
© 1992-2004 VersusLaw Inc.