Stevens v. De Cardona

Citations

• 53 Cal. 487

Syllabus

<p>Construction of Mortgage.—A stipulation in a mortgage that in case of default in the payment of the interest upon the note, secured by the mortgage, on or before the 5th day of any month, to the agent of the mortgagee, the agent should take charge of the mortgaged premises, collect the rents, deduct interest, and pay the excess to the mortgagor, does not conflict with a previous stipulation in the same mortgage, that in default of payment of interest for a period of sixty days, the mortgagee might at his option consider the principal sum due and foreclose.</p> <p>Same—Expenditures from Rent Money.—Although by a provision of the mortgage it was covenanted that in case the mortgagor did not keep the property fully insured, or did not pay all taxes and assessments, the mortgagee might pay the same and have his lien therefor with interest, yet the agent named in the second of the stipulations was not authorized to pay such taxes, or assessments, or premium insurance, or make other like expenditures out of the rents received, and thereby, perhaps, reduce the amount received as rents below the interest to be paid on the note and mortgage, and set running the sixty days mentioned in the first of the stipulations.</p>