Kelso v. Russell & Co.

Citations

• 33 Wash. 474
• 74 P. 561
• 1903 Wash. LEXIS 543

Syllabus

<p>Payments—Application—Notes to Secure Future Advances—■ Open Account. Where notes and mortgages were given in part to secure payment for future advances of merchandise from the mortgagee to the mortgagor, between whom there was an open hook account before and after the notes were given, payments may be applied by the creditor to the open account, in the absence of directions by the mortgagor; and a subsequent mortgagee can not object to such application where it appears that the amount of the notes had been advanced, and no part paid, and that all credits had been given to the open account, which was not part of the notes.</p> <p>Mortgages—Priority. Where plaintiff held two notes for $1000 each, one secured by mortgage upon real and personal property, and the other secured by a chattel mortgage upon entirely different property, and subsequently the debtor secures five notes to R by a mortgage upon real estate and also by chattel mortgages upon part of the personal property described in plaintiff’s mortgages, R’s real estate mortgage is subject to only one of plaintiff’s notes, and a finding that it is subject to both of them is error.</p> <p>Same—Fobeclosube—Decbee—Pbiobitv—Sepabate Sales. In a single action brought to foreclose both of plaintiff’s mortgages in which R defends, the decree should provide for the separate sale of the real and personal property covered by the first of plaintiff's mortgages to satisfy the same, applying the balance of the proceeds upon R’s mortgage; and the same as to the other of plaintiff’s mortgages.</p>