Farmers' Loan & Trust Co. v. Denver, L. & G. R.

Citations

• 126 F. 46
• 1903 U.S. App. LEXIS 4281

Syllabus

<p>1. Mortgages — Superiority in Equity — Subsequent Mortgage of Legal Title to Pay Purchase Price.</p> <p>The mortgagee under the after-acquired property clause in a prior mortgage of an equitable title to land, which is subject to the condition that the mortgagor shall pay that portion of the unpaid purchase price which the purchaser of the legal title owes, before divesting him thereof, may not enforce a conveyance of the legal title, or subject to his mortgage a subsequent mortgage of that title to another for the purpose of securing the payment of a loan, a portion of the proceeds of which was applied to the payment of the unpaid part of the purchase price of the land, except upon condition that there shall be repaid to the subsequent mortgagee, out of the proceeds of the sale of the property or otherwise, the moneys which were taken from the proceeds of his loan and applied to the payment of the debt for the purchase price.</p> <p>Same — Taxes.</p> <p>The decree for the first mortgagee must also be conditioned with the repayment to the second mortgagee of the taxes upon the property which the latter has paid during the existence of his claim.</p> <p>8. Same — Future-Acquired Property — Interest Covered.</p> <p>A mortgage of future-acquired property attaches to the interest obtained by the mortgagor only, and is inferior to junior liens, incumbrances, and equities under which the property comes to the mortgagor.</p> <p>4. Cross-Bill — Requisite to Affirmative Relief.</p> <p>The general rule is that no affirmative relief can be granted to a defendant in equity in the absence of a cross-bill which prays for it.</p> <p>5. Same — Exception—Such Bill not Requisite to Compel One Who Asks Equity to Do Equity.</p> <p>There is an exception to the rule.</p> <p>It is that no cross-bill is necessary to enable a court of equity to grant any relief to a defendant, affirmative or otherwise, which the principle that he who asks equity must do equity requires the court to impos