Lœwenthal v. McCormick

Citations

• 101 Ill. 143
• 1881 Ill. LEXIS 57

Syllabus

<p>1. Pledge—of note secured by trust deed, to party paying holder. If a bank advances the money due on a note secured by deed of trust, to the holder', under a contract with the maker that the note shall be transferred to the bank, to be held as a pledge for the repayment of the money so advanced, the lien of the trust deed will remain until the advance is repaid; and if another, under a similar agreement with the maker, pays the bank its advance, and the note and deed of trust are passed over to him as security for the money thus paid the bank, the latter, in equity, will be subrogated to the rights of the bank, and entitled to hold the note and deed of trust as security for the money so advanced by him.</p> <p>2. Where a party draws his check upon his banker for a sum sufficient to pay off his note secured by deed of trust, and held by another, under an agreement with the bank to make the check good as to any deficiency in his account with the bank, and to take and hold the note and deed of trust in security for the sum paid for him over and above the money deposited to his credit, and it appears from the books of the bank that he had on deposit a sum sufficient to pay the check, less only $2500, this will be a payment by the maker of the note of its amount, less the $2500 deficiency in his account, and a discharge of the mortgage, except as to that sum, in favor of subsequent purchasers of the mortgaged premises, and neither the bank nor its assignee can enforce the deed of trust for any more than that sum.</p> <p>3. Evidence—banker’s boolcs. The entries in the books of a bank being its own declarations in writing, are competent evidence against the bank and its officers of the state of a party’s account, and of moneyed transactions with him, and neither the bank, nor its president succeeding to its rights and equities, can be heard to find fault with the manner in which the books were kept.</p>