Barbour v. Scottish-American Mortgage Co.

Citations

• 102 Ill. 121
• 1882 Ill. LEXIS 11

Syllabus

<p>1. Deed oe trust—release by trustee—rights of subsequent incumbrancer. Where a deed of trust given to secure a debt is released by the trustee without authority of the party secured, and he has never sanctioned or ratified the act, a subsequent incumbrancer can not obtain a prior lien.</p> <p>2. But if the party secured b) the deed of trust authorizes the trustee to release the lien, or if he fails at once to repudiate the act of the trustee in making the release without authority, when informed of the fact, and lies by until third persons have advanced large sums of money upon the faith of what his agent has done, he will be estopped from repudiating the act as unauthorized.</p>