Mortgagee

“ An ordinary mortgagee of real estate, who has not taken possession under his mortgage, is not entitled to the rents and profits as against the mortgagor or his attaching creditors; and the same rule holds good in the case of a mortgage by a railroad, canal, or bridge corporation of its tolls and revenues, which provides a mode in which the mortgagee shall take possession, and, until that mode is availed of, leaves the tolls and revenues in the control of the mortgagor, to be disposed of as he sees fit. ”

“ If the interest which should be paid half-yearly remains unpaid at the end of a year, the mortgagee has a right to be impatient, has he not?"
"Certainly he has."
"Well, then, on fait un commandement tendant de saisie immobiliere, viz: The mortgagee gives a notice that the property shall be put up for sale. Then it is put up for sale, and in most cases the mortgagee buys it in. Here, certainly, no competitors in the mere business way would vie with Louvier; the mortgage at three and a half per cent. covers more than the estate is apparently worth. Ah! but stop, M. le Marquis ”

“ A mortgage, it is sometimes said, is a security created by the transfer of the debtor’s property to the creditor, while a lien is merely an encumbrance of some sort created in favour of the creditor over property which remains vested in the debtor; a mortgagee is the owner of the property, while a pledgee or other lienee is merely an encumbrancer of it. ”

“ A mortgagee can only foreclose those claiming an interest in the mortgaged property after himself; but a mortgagor must redeem every mortgage, and any mortgagee, in order to obtain the rights of a first mortgagee, must redeem all mortgages prior to his own. ”

“ In others, the mortgagee’s rights are limited to such as the rules of equity prescribe, and may not be enforced by a suit at law. In yet others, the mortgagee’s interest is not deemed an estate at all, but is here only to be enforced by the sale of the premises as a means of paying the debt. ”

“ Let me take the mortgage on myself, and become sole mortgagee—hush!—on this condition,—that there should be an entire union of interests between us two; that I should be at liberty to make the improvements I desire, and when the improvements be made, there should be a fair arrangement as to the proportion of profits due to me as mortgagee and improver, to you as original owner. ”

“ And this equity, at first regarded as a mere right of the debtor, became established in course of time as an estate in land which descended to the heirs of the mortgagor. On the other hand, the interest of the mortgagee is part of his personal estate, and passes to his executor and not to his heir. In spite of the terms of the mortgage, the owner of the land is still the owner, and the mortgagee is a creditor for the money he advanced and the interest thereon. ”

“ By virtue of the mortgage alone the mortgagee can neither acquire the possession nor dispose of the premises, but the existence of the mortgage does not prevent the owner from making an independent contract for the possession or from authorizing a sale of the premises, the mortgagee consenting thereto, to pay off the debt. ”

“ It is conceded that in such case as the present one, where the mortgaged property is insufficient to pay the debt, the mortgagee has the additional equitable right to have a receiver appointed to take possession, and in the end, if necessary, the rents and profits will be appropriated to pay the deficiency. ”

“ The mortgagor, after condition broken, has no right in law or equity to the possession of the mortgaged property, unless it be so expressed in the mortgage. If it be personal property, it is everyday practice for the mortgagee, after condition broken, to seize the goods and chattels and hold them until the debt be paid, or to sell in satisfaction of the debt. If the mortgagor refuse to deliver possession on demand, the mortgagee can recover it by replevin, and this is often done. ”

“ The mortgagee may take possession at any time, but, so long as there has been no breach of condition of the mortgage, this right is rarely exercised, and the mortgagor is usually permitted, by oral or tacit agreement with the mortgagee, or by express stipulation in the mortgage, to remain in possession. ”

“ Where a mortgagee is in possession, and the annual rents and profits of the mortgaged estate, exceed the interest of the debt due, it seems that he should pay interest on the surplus rents and profits. ”

“ So whether a sound distinction may not exist at times between a mortgage and a sale, need not be examined, though it is more customary in all mortgages for the mortgager honestly to retain the possession, than to pass it to the mortgagee. ”

“ Though the assumption of the mortgage debt by the subsequent purchaser is absolute and unqualified in the deed of conveyance, it will be controlled by a collateral contract made between him and his grantor, which is not embodied in the deed; and it will not in any case be available to the mortgagee, unless the grantor was himself personally liable for the payment of the mortgage debt. ”

“ I gave the mortgage to save my father from prison. He promised to pay it, but never did, and I have only managed to pay the interest on it. The face of the mortgage is three thousand dollars. I did not care to let everyone know there was a shadow over your birthplace, so I have kept it a profound secret. The mortgagee and our old servants are the only beings who know of it. My dear son, I have taught you to be a good farmer, and I pray to God you may be able to raise the mortgage when it becomes due. ”

“ The consideration of a mortgage ordinarily is an advancement or loan, past or present, made by a mortgagee to the mortgagor. That is, a mortgage is given as security for some debt or obligation in favor of the mortgagee. ”

“ In the ordinary cases, where the relation of the mortgagor and mortgagee is uncontroverted, if a mortgagee receive the rents of a mortgaged estate after his debt has been satisfied, and retain them to his own use, without paying them over to the mortgagor, he is chargeable with interest. ”

“ You will find the facts fully set forth. Here is a mortgage deed for £50,000,—a sum which simply represents your share of the profits of the business during the period of our partnership. The other mortgagee is your intended father-in-law, who has invested p. 219his daughter’s fortune in the same property as her trustee and guardian. The two sums amount to £115,000, which are secured on your paternal estate, Wynn Castle. On the day of your marriage, the estate, which has been greatly improved since your poor father’s death, will be conveyed to you as sole owner, by cancelling those deeds. ”

“ But there are features engrafted on this mortgage which are not only to the prejudice of creditors, but which show that other considerations than the security of the mortgagees, or their accommodation even, entered into the contract. Both the possession and right of disposition remain with the mortgagors. They are to deal with the property as their own, sell it at retail, and use the money thus obtained to replenish their stock. There is no covenant to account with the mortgagees, nor any recognition that the property is sold for their benefit. ”

“ Louis, 14.7 in Omaha, 16 in New York, 16.5 in Cincinnati, 12.9 in Cleveland, 16.4 in Philadelphia, 15.8 in Pittsburgh, 20.1 in Memphis.
Mortgages.—A mortgage is a bill-of-sale from the owner of property to another competent to hold property. The one giving the mortgage is called the mortgagee, and the one to whom it is made is known as the mortgagor. A mortgage differs from a bill-of-sale in that the mortgagor cannot obtain ownership of the property mortgaged, unless the amount involved is not paid him at the expiration of the mortgage, or the interest is not met. ”

“ The mortgagees were pressing for a large sum of interest overdue, and Vancome's solicitors had done all in their power to raise this money, but as yet without success. I therefore called on a firm of rather second-rate bill discounters, and had an interview with Mr. Marsden, the senior partner, who had some interest in the mortgage.
"I have always adopted one method in dealing with business men, which has proved on the whole successful. ”

“ On loans for 24-1/2 years the interest and sinking fund, payable by the borrowers, amount to 8-1/2 per cent., and on those for 34-1/2 years, to 7-1/2 per cent., the lands purchased by such means remaining inalienable until the extinction of the mortgages, except with the consent of the mortgagees, i. ”