Hamlin v. Nace

Citations

• 99 Kan. 286
• 161 P. 655

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Note and Mortgage — Authority of Local Agent of Owner to Receive Payments — Evidence. One who negotiates a mortgage loan or an extension of such loan and at whose office the interest and principal are to be paid when due, is not, as of course, the agent of the mortgagees to receive such payments, but such agency may be established by proof of the course of dealing between such person and the mortgagees.</p> <p>2. Same. Where a loan from two mortgagees is negotiated through a loan broker and the principal and interest are payable at the broker’s office, and the money loaned is remitted to him to be paid to the borrower, and the broker divides his commission with one of the mortgagees, and where the mortgagees are accustomed not to forward the coupon notes or principal notes to the designated place of payment— the broker’s office — but to retain them until he collects the payments of interest and principal thereon and remits the money to them, and where it is shown that this is the customary course of business, not only as to this loan but also on a number of similar loans made through the same broker on behalf of the same mortgagees, and that they transacted all such business in that locality in this- manner, such evidence is sufficient to warrant the conclusion that the broker was the authorized or ostensible agent'of the mortgagees to receive partial payments on the principal of the mortgage debt payable at interest-paying periods.</p>