National Premium, Building & Loan Ass'n v. Seibert

Citations

• 178 Pa. 331
• 35 A. 878
• 1896 Pa. LEXIS 1173

Syllabus

<p>Building association— Mortgage — Leasehold—Assignment—Affidavit of defense.</p> <p>S. executed a mortgage to a building association on a leasehold, in which he covenanted to pay, in addition to the mortgage debt, city and county taxes. He subsequently assigned the leasehold to defendant subject to the payment of the money owing upon the mortgage. The association was compelled to pay rents, taxes and water rents on the premises in order to preserve its rights to the lease, and it subsequently foreclosed the mortgage and bought in the leasehold for a nominal sum. It then began suit against defendant to recover the balance due upon the mortgage, and rents and taxes which it had paid. The defendant filed an affidavit of defense in which he averred that though the mortgage given by S. to the plaintiff was drawn for $2,300, only the sum of $1,800 was loaned or advanced on it by plaintiff to S. at the time the mortgage was executed and delivered ; that tiie leasehold mortgaged by S. to plaintiff and transferred by S. to defendant was reassigned by defendant to S. with the knowledge of plaintiff, and at the date of said reassignment there were no arrearages due on the stock in plaintiff association; that the remaining $500 was not paid or advanced by the plaintiff to S. until after the date of the reassignment to S.; that the defendant is not and never was at any time a stockholder in said plaintiff association, and that he has never had any contract relation with the association under and whereby he might or could become indebted to it. Held, that the affidavit of defense was sufficient to prevent judgment.</p>