Where property of an insolvent corporation is at the time of the appointment of a
receiver encumbered with mortgages or other liens, the legality of which is brought
in question, or the property is of a character which will materially deteriorate in
value pending the litigation, the district court may order the receiver to sell the
same, clear of encumbrances, at public or private sale, for the best price that can
be obtained, and pay the money into court, there to remain subject to the same liens
and equities of all parties in interest as was the property before sale, to be disposed
of as the court shall direct.
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