Hutchinson v. Rice

Citations

• 105 La. 474

Syllabus

<p>Syllabus. .</p> <p>1.. One, who, without interest as creditor, co-debtor, or heir, pays the mortgage note of another acquires no subrogation to the rights of the creditor unless it be expressed, and made at the same time as the payment. He has a claim for reimbursement against the party for whose benefit the payment was made, but only as ordinary creditor.</p> <p>2. The pledgee of mortgage notes, receiving same after their maturity, may claim no greater rights than the pledgor had, certainly so far as the mortgage securing the notes is concerned.</p> <p>3. While Art. 2160 of the Code declares that a debtor, borrowing a sum of money to pay his debts, may, by public notarial act, subrogate the lender to the rights of the creditor, and that this subrogation takes place independently of the creditor, the recital is controlled by Art. 2162, which, in effect, provides that in case of a subrogation made by the debtor, the creditor may exercise his right for what remains due him in preference to the debtor's subrogee.</p>