Furness v. Union National Bank

Citations

• 147 Ill. 570
• 35 N.E. 624

Syllabus

<p>1. Administration of estates—allowing claims—secured by collaterals. A creditor secured by collaterals is permitted to prove his claim against an estate, for the full amount, because he has the double right of suing the debtor personally on the debt itself, and also of realizing from the property pledged as security. He may sue on the principal debt before resorting to the security. The right to sue on the debt, and the right to enforce the security, are concurrent rights, and proceedings to enforce them may be pursued until the debt is fully paid, .and these rights remain the same if the debtor dies, and dies insolvent,</p> <p>2. The creditor of an estate has a right to prosecute his claim against the estate in the hands of the administrator, as he has a right to prosecute it for the full amount against the debtor when alive. This right is subject to the condition that the whole amount of his claim is due to him when he files and proyes it. If he has realized upon his collateral before filing and proving his claim, he voluntarily parts with the double right secured to him by the law, and can only proceed for what is actually due to him,—that is to say, for what remains of his claim after deducting the amount realized from the collateral.</p> <p>3. Same—insolvent estate —allowing dividends on secured claims. Where a creditor holding a claim secured by collaterals, against an insolvent estate of a deceased person, files and proves his claim for the full amount in the probate court, and has a trial of it before the court upon its merits, and, after it has been so filed and tried, realizes from his collaterals a sum which is less than the amount of his claim, he will be entitled to a dividend upon the whole amount of his claim until it is fully paid.</p> <p>4. The collateral security does not become a part of the assets of the estate until the creditor’s lien on it is discharged, and can not be made to benefit- the other creditors, until the claim of the creditor ha