Washington Loan & Trust Co. v. Ritz

Citations

• 37 Wash. 642
• 80 P. 174
• 1905 Wash. LEXIS 785

Syllabus

<p>Estoppel — In Favor of Purchaser of Mortgaged Premises— Bills and Notes — Mortgages—Holder of Unpaid Coupons— Notice of Negotiations. Where a purchaser of mortgaged proi> erty, who had assumed payment of the mortgage as part of the purchase price, paid the amount claimed by the holder, and received a satisfaction in full discharge of the mortgage, the holder of unpaid negotiable coupon notes secured by the mortgage, to whom they had been assigned by the holder of the mortgage before maturity, is not estopped to assert a claim against the property and to foreclose the mortgage to satisfy the same, by reason of the fact that four days before he purchased the property or assumed the mortgage, the purchaser wrote to the assignee of the coupons that he was about to arrange a release of the mortgage and if it had any interest to advise him, and that he received no reply; nor by the fact that the assignee had for a long time been the agent of the holder of the mortgage for the purpose of collecting interest, had notice of the pending negotiations, and gave no notice that it held the coupons or that they were unpaid.</p> <p>Bills and Notes — Mortgages—Assignment of Coupons — Payment — Estoppel. Where a loan and trust company, having sold a mortgage and coupon notes to an eastern customer, was in the habit of advancing payment of the coupons six days before maturity, and the holder returned the coupons endorsed with the stamp of negotiability, the transaction does not amount to a voluntary payment of the coupons, and the trust company is not estopped to collect the same from the makers or from one who had assumed the mortgage.</p>