Magill v. DeWitt County Savings Bank

Citations

• 126 Ill. 244
• 19 N.E. 295

Syllabus

<p>1. Subbogation—creditor of mortgagor—bringing into court the ■ amoimt of the mortgage—subrogation to rights of mortgagee. Where a creditor of a mortgagor of chattels is compelled, by an order of court in which he has filed a bill, to bring into court the amount secured by the mortgage, and the mortgagee, by leave of the court, withdraws the same, then, even though such order was erroneously made, the creditor will have the right, in equity, to be subrogated to the rights of the mortgagee under the mortgage.</p> <p>2. Chattel mobtgage—purchaser from mortgagor—creditors—of their relative rights. If the owner of chattels which he has mortgaged, sells the same subject to the mortgage, and the purchaser recovers their full value in an action against the sheriff, who has levied upon and sold the same under execution against the mortgagor, such purchaser, as against the mortgagee, can not retain any more of the proceeds of his recovery than the excess over the sum due on the mortgage.</p> <p>3. If a creditor of a mortgagor has his execution levied upon the mortgaged chattels, and the same are sold, and an action is brought against the sheriff by a purchaser from the mortgagor, who recovers judgment for the full value of the property, such recovery will be conclusive that such execution creditor has no right to hold any portion of the mortgaged property by virtue of his execution.</p>