Ormsby v. Hale

Citations

• 15 S.D. 206
• 88 N.W. 101
• 1901 S.D. LEXIS 109

Syllabus

<p>Defendant executed a note, interest coupon notes, and a trust deed. The payee and trustee were officers of an investment company, which had issued debenture bonds, and the papers were delivered by such officers to certain trustees for the holders of such bonds, the investment company to receive all interest or interest coupons due, unless such trustees were notified that the company had failed to pay interest on any such bond. At maturity of a coupon, January 1, 1894, it was returned to such company, and retained until a receiver was appointed, the next June, and held by the receiver until he sold it to plaintiff, in 1898. In 1896 the trustees for the bondholders sold the principal note and trust deed to a purchaser, to whom the payee and trustee named in the deed executed an assignment in due form of the mortgage and the note or notes secured thereby. The same year defendant conveyed the mortgaged property to such purchaser in full payment of the debt, and the purchaser canceled the principal note and trust deed. Held, that, even if the sale by the trustees for the bondholders did not carry with it the 1894 coupon, the transfer executed by the payee and trustee in the trust deed conveyed the principal note and all coupons to the purchaser, and by such settlement between him and defendant the 1894 coupon was paid.</p>