Zimmerman v. Raup

Citations

• 162 Pa. 112
• 29 A. 352
• 1894 Pa. LEXIS 951

Syllabus

<p>Mortgage bonds — Payment—Assignment as collateral — Security for another debt — Distribution.</p> <p>A mortgage given to secure the purchase money of a farm was payable to the heirs at law of a former owner whose widow was still living. Two sets of bonds were secured by the mortgage. The first set covered the portion of the purchase money payable to the heirs before the death of the widow; the second set included that which would fall due to them at her death. The first set was paid when they fell due, and the bonds were given up to the mortgagor. About a month later the mortgagor caused assignments to be written on each bond, and procured the former holders to execute these assignments to his brother, to whom he delivered the bonds so assigned as collateral security for money which he had borrowed from his brother. The evidence showed that the brother did not buy, or lend the money to the mortgagor with a view to a purchase of, the bonds, but that the bonds had been paid, and as to the obligees fully satisfied and delivered up; that the subsequent' arrangement for their transfer to the brother was made to enable the mortgagor to keep them alive as against himself as a security for his brother, but not with a view to resuscitate them so far as the assignors were concerned, or to prevent the collection by them of the balance due to them out of the proceeds of the mortgaged premises. Held, that the brother was not entitled to come in upon the fund raised by a sheriff’s sale of the land under foreclosure proceedings on the mortgage, until the second set of bonds was paid.</p>