Beaver v. Slanker

Citations

• 94 Ill. 175

Syllabus

<p>1. Subrogation—generally—and as io rights of a surely, and a purchaser from surety. Where, at the time when the obligation of a principal and surety is given, a mortgage also is made by the principal to the creditor as an additional security for the debt, if the surety pays the debt he will, in equity, be entitled to have an assignment of the mortgage and to stand in the place of the mortgagee, and the mortgage will remain a, valid and effectual security in favor of the surety for the purpose of reimbursing him, notwithstanding the obligation is paid. The mortgage is regarded as not only for the creditor’s security, but for the surety’s indemnity as well.</p> <p>2. A mere stranger or volunteer can not, by paying a debt for which another is bound, be subrogated to the creditor’s rights in respect to the security given by the real debtor; but if the person who pays the debt was compelled to do so, for the protection of Ms own interests and rights, the substitution should be made.</p> <p>3. Where a debtor gives personal security for his debt and also a mortgage on his land to the creditor, who recovers judgment against both the principal and surety upon the note given, which becomes a lien upon the land of the surety, and the surety then sells his land by warranty deed to another, after which his land so purchased is sold in satisfaction of the judgment, and the purchaser is compelled to purchase the certificate of purchase to save his land, and takes an assignment of the mortgage, the grantee of the surety so paying will be entitled to be subrogated in equity to the rights of the creditor, and to have the mortgage foreclosed to indemnify him for the sum so paid by Mm.</p> <p>4. Where a person gives a note with personal security for a debt, and also a mortgage on his land as a further security, the surety, or his grantee of land upon which a lien was created by judgment for the debt before the execution of his deed, who is compelled to pay a portion of the debt, wil