Wooldridge v. Bowmar

Citations

• 64 Miss. 34

Syllabus

<p>1. MORTGAGE. Accommodation notes payable pro reda. Rights of indorsee, maker, and payee respectively. Proceeds of sale under mortgage.</p> <p>C. executed eight accommodation promissory notes for $2,500 each in favor of K., payable at different times, and secured by a mortgage on certain property deeded to C. by K. for the purpose of being thus incumbered. K. indorsed tbe notes and transferred them to W. The first two notes were taken up by IC. at maturity, but not cancelled. K. afterward assigned all of his assets for the benefit of his creditors. But the assignment was vacated, and B. was appointed receiver of his estate, and as such came into possession of the two'uncancelled notes taken up by K. W., on the non-payment of the remaining notes held by him, obtained a decree for the foreclosure of his mortgage, and the property therein embraced was sold under such decree. B. appeared and asked that he be allowed a pro rata share of the proceeds of the sale in proportion as the two notes were a part of the series secured by the mortgage. Held, that W. was entitled to the whole proceeds of the sale.</p> <p>2. Same. Accommodation notes Indorsee holding some. Payee holding others. Proceeds of sale.</p> <p>As between O. and K. in the case above stated the notes imposed no obligation on the former, and B., as receiver of K.’s estate, stands in no better attitude than K. would. The notes taken up by K. must be disregarded or treated as the notes of K. secured by a mortgage on his own land. The mortgage as to the notes held by W, is good against both K.. and C., and C. is entitled as against K. to have the proceeds of the mortgaged property applied to the payment of the notes held by W., as he is not liable on those held by B.</p>