Focke, Wilkins & Co. v. Weishuhu

Citations

• 55 Tex. 33
• 1881 Tex. LEXIS 77

Syllabus

<p>1. Trust deed—Subrogation.—It was agreed between a creditor, his debtor, and a third party, that if the third party would advance an amount of money sufficient to pay off the creditor’s claim, which was then secured by a deed of trust, the creditor would secure the repayment of the advance by transferring to the third party the deed of trust. This was done, and two days afterwards a newnote for the amount was made by the debtor to the third party, which on its face declared that it was secured by the deed of trust which had been formerly given to secure the original creditor. Held,</p> <p>(1) The transaction did not extinguish or discharge the deed of trust.</p> <p>(2) The transfer of the deed of trust to the third party, who advanced the money, subrogated him to the rights of the original creditor, and authorized him to foreclose the trust deed to secure the payment of the note given after the trust deed was executed.</p> <p>(3) Had the original creditor refused to transfer the trust deed, under the circumstances, after receiving the money to satisfy his note, equity would have enforced the transfer.</p>