New Orleans National Banking Ass'n v. Le Breton

Citations

• 120 U.S. 765
• 7 S. Ct. 772
• 30 L. Ed. 821
• 1887 U.S. LEXIS 2015

Syllabus

<p>In Louisiana a holder of a first mortgage on real estate, duly executed before a notary with pact de non alienando, is not bound to give notice to subsequent mortgagees, or to any person but the debtor in possession, when he proceeds by executory process to obtain seizure aud sale of the mortgaged property to satisfy the mortgage debt.</p> <p>In Louisiana a mortgage given to secure a future balance on an open unliquidated account is valid; and the acknowledgment of the amount of the balance by the debtor, before a notary, is all that is necessary to be done under the Code, in order to ascertain it for the purposes of executory process.</p> <p>In Louisiana, informalities connected with or growing out of any public sale, made by any person authorized to sell by public auction, are prescribed against’ by those claiming under the sale after the lapse of five years from the time of making it, whether against minors, married women, or interdicted persons.</p> <p>W, owning a plantation in Louisiana, and being embarrassed, agreed with several of his creditors and with K, that W should remain in possession and work the plantation; that K should make annual advances to a stipulated amount to enable him to work it, and should receive and dispose of the crops and apply their products, first to the payment of his own account, and next to'the payment of the debts of the creditors; and that for these advances and the balance on his account K should have a first mortgage on the plantation with pact de non alienando, and that the debts of said creditors should be secured by a mortgage subsequent to the lien to secure IC’s account. A'second mortgage was afterwards made to K, with a like pact, and with an agreement, in which all joined, that it should have priority over the first mortgage. ■ The plantation was worked at a loss, and K having made large advances, W acknowledged the amount of them before a notary, and K proceeded .by executory process to obtain a sale of the plantatio