Union Mutual Life Insurance v. Chicago & Western Indiana Railroad

Citations

• 146 Ill. 320

Syllabus

<p>1. Interest—when payable under contract. An insurance company claiming title to a lot of ground under a sale on a deed of trust, the validity of the sale being denied by the mortgagor, sold the same to a railway company which had instituted a proceeding to condemn the same lot, making a quitclaim deed, and giving its agreement, dated March 24, 1880, that if the trustee’s deed should be set aside and a redemption allowed from such sale, the insurance company should pay out of the redemption money the sum of $-1680, the purchase money, with interest thereon from the date of the agreement. The compensation allowed in the condemnation proceeding was $6615, which the railway company deposited in the county treasury on December 27, 1880, where it remained until January 17,1889, when it was distributed by agreement. On cross-bill of the railway company the court decreed that the insurance company should pay six per cent interest for $4680 from December 27, 1880, to January 17, 1889: Held, that the decree allowing the railway company interest was erroneous, and that after the condemnation the mortgage or deed of trust became a lien on the fund or compensation money.</p> <p>2. Equitable assignment—of mortgage or deed of trust by conveyance. Where-the holder of a voidable title acquired by a sale under a deed of trust, sold the property to a railway company, through an agent of the latter, for $4680, and obligated itself, by contract, to repay the purchase money, with six per cent interest, in case the sale under the trust deed was set aside and a redemption allowed, which was to be repaid out of the redemption money, it was held, that the deed to the railway company conveyed only the mortgage interest held by the grantor, and that it operated as an equitable assignment of the deed of trust, and thereafter the railway company held as mortgagee, just as its grantor had done before such conveyance.</p> <p>3. Eminent domain — effect of condemnation on mortgage. Where property