Moline Plow Co. v. Webb

Citations

• 141 U.S. 616
• 12 S. Ct. 100
• 35 L. Ed. 879
• 1891 U.S. LEXIS 2552

Syllabus

<p>An action was brought upon three promissory notes with interest payable annually, each providing that if not paid when due it was to bear the rate of interest of the principal, “ it being expressly agreed that in default of payment of interest when due the principal is to become due and collectible.” Each note recited the fact that it was secured by a deed of trust executed to a named trustee on certain described property. The deed described the notes and declared: “ provided, however, it is agreed that if at any time said interest shall remain unpaid for as much as ninety days after the same shall become due and payable then the whole debt as well as the intei’est shall become and be due and payable, and further it is understood and agreed that if said note first falling due shall remain unpaid thereafter for as much as six months then the whole debt is to be and become due and payable, and this trust, in either event, to be executed and foreclosed, at the option of said third party.” It also contained a clause to the effect that if the money due on the notes was not paid “ according to the tenor and effect of said notes in hand, and according to the terms, stipulations and agreements of this instrument,” the, deed should remain in force, and the trustee, or in the event of his death or refusal to act, “ then at the request of the holder of said notes, the sheriff . . . ■ may proceed to sell said described property, or any .part thereof, at public vendue, to the highest bidder for cash, . . . 'and shall receive the proceeds of said sale, out of which shall be paid, first, the'costs and expenses of executing this trust, including compensation to said trustee, or said sheriff for his services, and next to the said third party or holder of said note whatever sum of money may be due thereon, and the remainder, if any, shall be paid to the said parties of the first part, or their legal representatives.” The statute of Texas provided that “ actions for debt where the