Sacramento Bank v. Alcorn

Citations

• 121 Cal. 379
• 53 P. 813
• 1898 Cal. LEXIS 917

Syllabus

<p>as security for loans, has been upheld in numerous cases decided since the adoption of the codes, and these decisions have become a rule of property which should not be disturbed, even if erroneous? and, under the maxim of stare decisis, it cannot be considered as open to discussion whether such trusts are for a purpose not authorized by section 857 of the Civil Code, or whether they are void as restraining alienation for a period not dependent upon the duration! of Ufa</p> <p>Id.—Effect of Trust Deeds—Rights of Trustor.—Under the decisions, trust deeds, though passing the legal title to the trustees, are practically little more than a mortgage, with a power to convey. -They convey no right of possession; and the trustor may remain in possession, and, until the execution of the trust, may sue to recover the possession, even when the trust deed is silent upon that subject. He may file his declaration of homestead, and hold the premises against creditors not secured by the deed of trust or other valid lien. He may devise or transfer the property subject to the trust, and the devisee or grantee acquires a legal estate against all persons except the trustees, and persons lawfully claiming under them. When the purpose of the trust ceases, the estate of the trustees also ceases. None of the incidents of ownership attach to the trust, except that the trustees are deemed to have such estate as will enable them to convey; and the trust, so limited, has all the characteristics of a power in trust.</p> <p>Id.—Legislative Recognition of Trust Deeds.—The provisions of sections 3617, 3627, and 3629 of .the Political Code upon the subject of taxation, recognize trust deeds as existing property, and sections 674, 2872, and 2924 of the Civil Code impliedly recognize them as an existing mode of securing loans; and if these sections do not themselves constitute an exception to the rule established by section S67 of the Civil Code, they at least recognize and add weight to the judic