(DOWNLOAD) "Richardson v. Lloyd Et Al." by Supreme Court of Montana * Book PDF Kindle ePub Free
eBook details
- Title: Richardson v. Lloyd Et Al.
- Author : Supreme Court of Montana
- Release Date : January 02, 1931
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 58 KB
Description
Promissory Notes ? Mortgage Security ? Action on Note Alone ? When Permissible ? Tax Deeds ? Tax Title not Open to Collateral Attack. Promissory Notes ? When Action on Note Maintainable Irrespective of Mortgage Security. 1. Where the pleadings in an action on a promissory note do not disclose that plaintiff has security for the debt, a personal action may be maintained, in such a case the provision of section 9467, Revised Codes 1921, that there is but one action for the recovery of a debt secured by mortgage, to-wit, foreclosure thereof, not applying. Same ? Mortgage Security Lost or Destroyed ? Action on Note Permissible ? Prior Holdings That Loss must have Been Without Fault of Mortgagee or Assignee Disapproved. 2. Held, that while rulings of this court in certain cases (see opinion) that where mortgaged property has been lost or destroyed and, hence, the security has become valueless, the creditor may maintain a personal action on the note irrespective of the mortgage, are correct, intimations therein that the mortgagees right, or that of his assignee, to maintain such an action is dependent upon the fact that the security was lost without his fault are erroneous. Same ? Loss of Mortgage Security Through Tax Sale ? Fault That of Mortgagor for Failure to Pay Taxes as Required by Mortgagee ? Action on Note Alone Proper. 3. Where a real estate mortgage made it the duty of the mortgagor to pay the taxes thereafter becoming due but authorized the mortgagee to pay them in case of the formers failure to do so, and the property was sold for taxes, the fault was that of the mortgagor and not of the mortgagee, who could, but was not obligated to, pay them, and therefore the latter, or his assignee, properly could maintain an action on the note on the theory that the security had become valueless without his fault, assuming that the question of where the fault lay was important. (See par. 2, above.) Tax Deeds ? Prima Facie Evidence of What Fact. 4. Under section 2213, Revised Codes 1921, a tax deed is prima facie evidence that proper notice for application for the deed was served or posted as required by law. Same ? Extinguishes All Former Titles. 5. A tax deed operates to divest the original owner of his title; though subsequent in time, it is paramount in right over the title of mortgagors and extinguishes all former titles. - Page 128 Same ? Tax Title not Subject to Collateral Attack. 6. While the legislature may summon the aid of the courts in the collection of taxes, and may provide for a tax sale under decree of court, it need not do so; a tax title obtained as provided by the Codes has the same effect as though accomplished through decree of court and, when regular on its face, is not subject to collateral attack. Promissory Notes ? Mortgagee or Assignee not Required to Attack a Tax Deed to Mortgaged Property Before Commencing Action on Note Alone. 7. While the assignee of a mortgage has the right to attack a tax deed to property covered by his mortgage in a direct proceeding for that purpose, it is not incumbent upon him to do so before commencing action on the note secured thereby on the theory that by the tax sale his security has become valueless.