Miller v. . Womble

Citations

• 29 S.E. 102
• 122 N.C. 135
• 1898 N.C. LEXIS 209

Syllabus

<p>Creditor and Debtor — Debts Secured and Unsecured— Running Account — Application of Payments.</p> <p>1. When there are two or more debts owing by a debtor to a creditor, the former may direct the application of any payment he makes; if he does not do so, the creditor may do so at his pleasure before bringing suit; if neither the creditor or debtor directs the application, the law will make it to the most precarious debt.</p> <p>2. While the rule for the appropriation of payments on running accounts is that the first item on the credit side of the account will be applied to extinguish the first item on the debit side, yet it has no force against an understanding of the parties to the contrary.</p> <p>3. Where M. took a mortgage on W’s. crops to secure advances and thereafter made farther advances under an agreement that the crops should be given to him and first applied to the settlement of the unsecured account, and only a running account was kept covering all the advances and containing the debit and credit items; IIeld, that, when payments from the crops equalled the amount secured by the mortgage, the lien of the latter was not discharged thereby.</p>