Bowen v. Barksdale

Citations

• 33 S.C. 142
• 11 S.E. 640
• 1890 S.C. LEXIS 112

Syllabus

<p>1; A note was drawn, payable at twelve months, “with intei'est from date ten per cent, per annum,” and if not paid at maturity, “the interest to be added to the principal and bear interest, and so continue until the note is paid.” Held, that ten per cent, interest should be added to the principal after maturity of the note annually, thus becoming a portion of the principal and bearing the same rate of interest as the principal until full payment.</p> <p>2. After the mortgage of a single tract of land, a judgment was obtained against the mortgagor, under which a portion of this tract was assigned by metes and bounds to the debtor as a homestead. In action of foreclosure, to which this judgment creditor was made a party defendant, held, that this defendant had the right to require the mortgagee to first exhaust the homestead tract. State Savings Bank v. Harbin, 18 S. C., 425, approved.</p> <p>3. Payments made by a surety on the note should be repaid to him out of the proceeds of sale of the mortgaged property, after the payment of the balance due to the mortgagee.</p> <p>4. Money paid by the son of the principal debtor, and so credited on the note under an agreement with him and with the party in whose possession the note had been placed for collection, that the payer should have an assignment of the note to the extent of such payments, is not entitled to be reimbursed out of the proceeds of sale of the mortgaged premises in priority to judgment creditors junior to the mortgage.</p> <p>5. Junior judgment creditors being made party defendants to an action for foreclosure, one of them raised an issue, which was decided against him — a decree directing him to pay his own costs, and that the costs of the others should be paid in priority to his judgment, not disturbed.</p>