Aufderheide v. Schroeder

Citations

• 178 Pa. 439
• 35 A. 1131
• 1896 Pa. LEXIS 1189

Syllabus

<p>Promissory notes — Extensions—Deed of real estate as collateral security for notes.</p> <p>A deed of real estate recited that the grantee had indorsed for the grantor promissory notes aggregating $7,000, and that the grantee contemplated the indorsement of sundry other notes for the grantor “ in renewal or extension of same.” The deed provided that upon the grantor’s failure “to pay or procure the renewal or extension of any one or more of said notes at any time,” the grantee should sell the property and apply the proceeds, after payment of expenses, “to the payment of all unpaid notes, whether due or not.” The deed was dated July 5,1892. Later in the same month the grantor defaulted in payment of two notes aggregating $3,800, which the grantee then paid, and in December, 1892, new notes were made, which the evidence tended to show were renewals of the notes paid in July. When these notes matured, they were renewed by one note for $4,000. Subsequently various judgments were entered against the grantor. On December 4, 1895, the grantee filed a bill in equity for a decree permitting him to sell the real estate. The court in its findings included the $4,000 as a renewal of notes which formed part of the $7,000 named in the deed. The judgment creditors objected that this note was not an extension of the notes which the grantee had paid in July, 1892. The court entered a decree in accordance with its findings. Held, that the decree should be affirmed.</p>