Witczinski v. Everman

Citations

• 51 Miss. 841

Syllabus

<p>1. Mortgages to secure Future Advances: When valid.</p> <p>A mortgage to secure future advances which, on its face, gives information as to the extent and purpose of the contract, so that a purchaser or junior creditor may, by an inspection of the record or by ordinary diligence, ascertain the extent of the incumbrance, will prevail over the supervening claim of such purchaser or creditor as to all advances made by the mortgagee within the terms of such mortgage, whether made before or after the claim of such purchaser or creditor arose.</p> <p>2. Same : Requisites thereof.</p> <p>It is not necessary for a mortgage to secure future advances to specify any particular or definite sum which it is to secure. It is not necessary for it to be so completely certain as to preclude the necessity of all extraneous inquiry. If it contains enough to show a contract that it is to stand as a security to the mortgagee for such indebtedness as may arise from future dealings between the parties, it is sufficient to put a purchaser or incumbrancer on inquiry; and if he fails to make it, he cannot claim protection as a bona fide purchaser.</p> <p>3. Same : Registration acts. Effect thereof.</p> <p>The law requires mortgages to be recorded for the protection of creditors and purchasers, and if it gives information that it is to stand as a security for all future indebtedness to accrue from the mortgagor to the mortgagee, all are put upon inquiry as to the state of dealings between the parties and the amount of indebtedness covered by the mortgage, and are duly advised of the rights of the mortgagee to hold the mortgaged property as a security for such indebtedness as may accrue to him.</p> <p>4. Same : Purchaser of mortgaged property.</p> <p>A purchaser of mortgaged property takes it cum onere, and is a trustee in• vitum of it or its proceeds, and liable to account to the mortgagee.</p>