Salinas v. Pearsall

Citations

• 24 S.C. 179
• 1886 S.C. LEXIS 20

Syllabus

<p>1. Where a trustee of J. and her children purchased land with the proceeds, in part at least, of trust px-operty, and took deed to himself as trustee, he holds the land so purchased xxnder the terms and limitations of the original trust deed.</p> <p>2. And this trustee having sold a part of this land to the defendant, and taken in part payment a bond and mortgage payable to himself as trastee for J., he could not assign these papers to secure advances to be made to J. and her husband.</p> <p>3. Power to the trustee to sell for the purpose of reinvestment, when requested by J., did not authorize such assignment at J.’s request; for, while ordinarily a purchaser is not required to see to the application of the purchase money, he is not protected whex’e he knows of the breach of trust, or the improper application is for his own benefit.</p> <p>4. In action of foreclosure instituted by the assignee, the mox’tgagor may defeat the action by showing that there has not been a legal assignment.</p> <p>5. Complaint dismissed without prejudice to any proper claim in equity against the income of the trast’property.</p>