Wales v. Gray
Michigan Supreme Court
Appeal from~Wayne; Adams, J., presiding. Bill by Edwin A. Wales against William J. Gray, Charles P. Toll, the Citizens’ Savings Bank, and Charles Toll, to compel the application of the proceeds of a sale under a trust deed upon a note indorsed by complainant. Prom a decree dismissing the bill, complainant appeals.
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Appeal from~Wayne; Adams, J., presiding. Bill by Edwin A. Wales against William J. Gray, Charles P. Toll, the Citizens’ Savings Bank, and Charles Toll, to compel the application of the proceeds of a sale under a trust deed upon a note indorsed by complainant. Prom a decree dismissing the bill, complainant appeals. On October 10, 1891, defendant Charles P. Toll was indebted to the Citizens’ Savings Bank upon two promissory notes,—one for $2,650, indorsed by the complainant and Charles Toll, and then past due; the other for $1,900, indorsed by Charles Toll alone, and to become due on October…
1Opinion of the CourtGrant, J.
(after stating the facts). Had the debtor, Toll, the right to direct the application of payments? We think not. The terms of the trust must control. If the debtor alone were concerned, it would make no difference upon which note the payment was applied. Charles P. *348Toll parted with his right to dictate or control the application when he gave the security. He then agreed and directed the trustee “to devote the net proceeds to the payment of these two notes.” The trust deed stands upon the same footing as a mortgage, securing distinct payments. In the absence, therefore, of any direction as to…
2Cases cited1 opinion
- Jennings v. MooreMichigan Supreme Court · 1890
3Cited by1 opinion
- Carr v. StencelMichigan Supreme Court · 1936