Mutual Mill Insurance v. Gordon

Citations

• 121 Ill. 366
• 12 N.E. 747

Syllabus

<p>1. Móbtgagob and mobtgagbe—a joint indebtedness made several, by apportionment — consideration—Statute of Frauds. The partition of mortgaged premises between the mortgagors, who are tenants in common, is a good consideration for an agreement on the part of the mortgagee to divide the mortgage debt and apportion the same among the several mortgagors.</p> <p>2. So if a mortgagee, while the holder of the debt secured, enters into a parol agreement with the mortgagors, and they with him and each other, for the partition of the mortgaged lands, and that each one of the mortgagors shall pay only a certain part of the debt, the agreement will be valid, and each one of the former joint debtors will become an individual debtor, and liable only for the amount allotted to him to pay; and this will be the rule, in equity, even as against a bona fide assignee of the mortgage debt before maturity.</p> <p>3. In this case, A, B and 0, being tenants in common of several tracts of' land, upon all of which they had given a mortgage to secure their note for $37,000, payable in five years, by an arrangement with the mortgagee made a. partition of the lands and apportioned the mortgage debt between themselves, so that A was to pay $17,000 on the property assigned to him, and the other-two were each to pay $10,000, which was to rest on their lands in severalty, and the mortgagee agreed, by parol, to hold each one’s premises only for his part of the debt: Held, that the agreement of. the mortgagee was based on a valid consideration, and that the Statute of Frauds had no application to the agreement.</p> <p>4. Release of mortgage—by parol. A parol release or accord and satisfaction of notes secured by mortgage, as between the parties, will operate; to release or discharge the mortgage, which is but an incident to the debt.</p> <p>5. Insurance—effect of untrue answers to ambiguous questions. A parly seeking to insure mill machinery, and shafting, gearing, belting and tools in his mill, wa