Swalm v. Planters' Bank

Citations

• 126 Miss. 65
• 88 So. 403

Syllabus

<p>Judgment. Secret agreement hetioeen assignee of loss under fire policy and mortgagee held not to defeat assignment of judgment for value.</p> <p>Where there has been a loss under a fire insurance policy, which contained a mortgage clause making the loss payable to a mortgagee, and after the fire the mortgagee assigned his interest in the policy and loss to a bank to secure an indebtedness to the. bank, and the bank afterwards, for the purpose of enabling the mortgagee to maintain a suit on the policy, delivered the policy to the mortgagee, and executed a cancellation of the assignment thereof, and suit was instituted and prosecuted to judgment by the mortgagee in his own name and right, held, that after the cancellation of the assignment to the bank it had no right or plaim to' the proceeds of the judgment which was superior to- that of any other creditor, and that any secret agreement between the mortgagee and the bank that the proceeds of the judgment would be applied to the mortgagee’s indebtedness to the bank amounted only to a promise to so apply it, and that an assignment of the judgment, for a valuable consideration, without notice of the claim of the bank, would not be defeated by such secret agreement.</p>