Washington Trust Co. v. Morse Iron Works & Dry Dock Co.

Citations

• 106 A.D. 195
• 94 N.Y.S. 495

Syllabus

<p>Mortgage — it may embrace after-acquired property, of which the vendor retains the title until it is paid for— the whole pi'opei'ty should be sold with a direction that the vendor be first paid from, the proceeds of the sale.</p> <p>A corporation may execute a mortgage, which, if suitably phrased, will cover after-acquired property, including the interest of the corporation in property purchased by it under a contract providing that the title thereto shall remain in the vendor until the purchase price thereof has been fully paid, which, condition has never been fulfilled.</p> <p>While property of the last-mentioned character comes under the mortgage, it does so subject to the terms of. the conditional sale.</p> <p>Where the mortgaged property includes a dry dock, and the subject of the contract of conditional sale is a pumping plant installed in said dry dock, the court, -when decreeing the foreclosure of the mortgage and the sale of the mortgagedi premises, may direct that the dry dock and pumping plant be sold as one parcel and that out of the proceeds of the sale, the vendor of the pumping plant be first paid the unpaid portion of the purchase price of the pumping plant, and the court is not obliged to relegate such vendor to his remedy of retaking the pumping plant or of suing the mortgagor for the unpaid purchase price thereof.</p>