Kellogg v. . Adams
New York Court of Appeals
This was an action to foreclose a mortgage given by tlie Defendant Adams to one Lampson, June 1st, 1857, for $4,000, payable in six months. The mortgage was in fact given only to secure future advances to be made, and liabilities to be incurred by Lampson, which never exceeded $3,000. They amounted to that sum on the 29th day of June, 1858, at which time Lampson declined to make any further advances, and was about to enforce his mortgage for those alréady made.
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This was an action to foreclose a mortgage given by tlie Defendant Adams to one Lampson, June 1st, 1857, for $4,000, payable in six months. The mortgage was in fact given only to secure future advances to be made, and liabilities to be incurred by Lampson, which never exceeded $3,000. They amounted to that sum on the 29th day of June, 1858, at which time Lampson declined to make any further advances, and was about to enforce his mortgage for those alréady made. On this emergency Adams, who wanted further accommodation, applied to the Plaintiff for aid, and it was arranged between them that…
1Opinion of the Court
The agreement and transaction between the plaintiff and Adams being usurious, the question is, did it invalidate the title of the plaintiff to the mortgage assigned to him by Sampson? I answer no. That mortgage was valid at its inception for such sums as Sampson should advance to Adams upon it. On the 14th day of August, 1858, it was valid in Sampson's hands for $3,000, actually advanced, and on that day it was assigned by Sampson to the plaintiff for the amount then actually due. What circumstance has intervened to invalidate this security in the plaintiff's hands? On the part of the…
2Cases cited3 opinions
- Schroeppel v. CorningNew York Supreme Court · 1848
- Dewitt v. . BrisbaneNew York Court of Appeals · 1858
- Johnson v. BushNew York Court of Chancery · 1848
3Cited by7 opinions
- Wyeth v. . BraniffNew York Court of Appeals · 1881
- Bowery Savings Bank v. NirensteinNew York Court of Appeals · 1935
- Southwestern Shipping Corp. v. National City BankNew York Court of Appeals · 1959
- Chicago Lumber Co. v. BancroftNebraska Supreme Court · 1902
- LaMont v. HandyAppellate Division of the Supreme Court of the State of New York · 1937
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