Heffron v. Gage

Citations

• 149 Ill. 182
• 36 N.E. 569

Syllabus

<p>1. Mortgages and deeds oe trust—declaring the whole debt due for default in payment of notes first maturing. Where a mortgage or deed of trust provides that in case of default in the payment of any installment of interest or any portion of the principal debt the entire debt, at the option of the mortgagee or the holder of any of the notes secured, shall become due, no particular form of expression is necessary to be used for the purpose of declaring such option.</p> <p>2. In this case, when the first series of notes secured by a deed of trust became due and payment was not made, three of the holders of the notes called on the trustee and informed him that they wanted their money. They then prepared a notice, in writing, addressed to him as trustee, in which they called on him to foreclose the deed of trust because of default of payment of the principal debt: Held, that while such notice did not formally declare the option to have the entire debt declared due, it was sufficient to show an intention to declare the entire debt due.</p> <p>3. There are many authorities which hold that no formal notice is required of the election of the holder of notes secured by mortgage to have the entire debt mature for any default on the part of the debtor, and that the commencement of a suit to foreclose the mortgage is sufficient to show the election of the creditors to declare the debt due before the maturity of the notes on their face.</p> <p>4. Eeoeiyer—appointment does not vest title to the debtor’s property. In this State there is no statute conferring title to property in a receiver who maybe appointed by a court of equity, and in the absence of such a statute a receiver can only acquire title by a conveyance. The mere order of appointment does not vest title to the property.</p> <p>5. A receiver, by his appointment, is authorized to take and hold possession of property under the control and direction of the court, and the general practice seems to be, when necessary for t