Pierce Butler

“ Respondents gave petitioner a mortgage on their farm lands in Arizona to secure a loan of $7,200 made in accordance with the Farm Loan Act. [1] The mortgage provides that in case of suit to foreclose the mortgagors shall pay a reasonable attorney's fee to be fixed by the court. And that clause is valid under Arizona law. [2] The borrowers having failed to pay according to their promise, petitioner brought this suit to foreclose the mortgage and prayed that an attorney's fee of $125 be included in the judgment. ”

“ Moreover, the quoted clause is in harmony with the restrictions put upon loans by section 12, 12 U.S.C.ode, § 771 (12 USCA § 771) , and is undoubtedly intended to emphasize and strictly to enforce limitations set by section 13 (9) , 12 U.S.C.ode, § 781 (9) , 12 USCA § 781 (9) , upon fees for appraisal and examination of title, legal fees, recording charges and the like that are included in the preliminary costs of negotiating and carrying the mortgage loans. ”

“ And the petition for this writ indicates that, except in a few States where local law prohibits such contracts, all the mortgages taken by the Federal Land Banks contain stipulations for attorney's fees for foreclosure. [3] From this it appears that officers charged by law with the administration of the banks have always construed the Act to permit state laws to control. Our attention has not been called to any case in which that construction has been questioned. It is entitled to great weight. ”