London & San Francisco Bank v. Bandmann

Citations

• 120 Cal. 220
• 52 P. 583
• 1898 Cal. LEXIS 738

Syllabus

<p>Mortgage—Indebtedness and Advances—Lien not Extinguished.—A mortgage given to secure “the present indebtedness” of the mortgagor to the mortgagee, not describing nor referring to notes then evidencing such indebtedness, and also to secure further “advances” to be thereafter made by the mortgagor to the mortgagee, secures the “indebtedness,” and “advances,” as the “principal obligation,” referred to in section 2911 of the Civil Code, regardless of the instruments by which they may be evidenced, or of any change of form thereof, and so long as they remain subsisting obligations under new evidences of the amount thereof, and an action for the amount of the indebtedness and advances secured can be brought upon new notes evidencing the same, the lien of such mortgage is not extinguished under said section 2911 merely by the lapse of time within which an action might have been brought upon the original notes.</p> <p>Id.—Mortgage not Needing “Creation” or “.Renewal”—Construction of Code.—Where the principal obligation secured has never become barred by the statute of limitations, and the lien of the original mortgage has not become extinguished under section 2911 of the Civil Code, there is no occasion to “create” a new mortgage, nor to “renew” the mortgage under section 2922 of the same code, by a “writing executed with the formalities required in the case of a grant of real property.”</p> <p>Id.—“ Extension” of Mortgage—Broadening of Security.—The term “extended,” as used in section 2922 of the Civil Code, refers to a broadening of the security to cover additional advances, or obligations not included in the terms of the original mortgage; and the mortgage is inoperative as to obligations not included in the original mortgage or in a valid extension thereof under that section.</p> <p>Id.—Note of Firm not Secured.—The amount of a note executed to the mortgagee by a firm of which the mortgagor was a member, which does not appear to have been any part of the indebtedness