Webster & Wilson v. Singley
Supreme Court of Alabama
Appeal from Circuit Court of Hale. Tried before Hon. M. J. Saffold. One Williams on the first day ot April 1869, executed a mortgage on certain lands and personal property, to Webster & Wilson to secure a debt due them. On the 10th day of July following, to secure debts due Singley and others, he executed a mortgage to them upon the personalty already mortgaged to Webster & Wilson.
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Appeal from Circuit Court of Hale. Tried before Hon. M. J. Saffold. One Williams on the first day ot April 1869, executed a mortgage on certain lands and personal property, to Webster & Wilson to secure a debt due them. On the 10th day of July following, to secure debts due Singley and others, he executed a mortgage to them upon the personalty already mortgaged to Webster & Wilson. After the execution of the mortgage to Webster & Wilson, Williams incurred an indebtedness to them, not embraced by their mortgage. One Jones was an unsecured creditor of Williams, and the two agreed with Webster &…
1Opinion of the Court
BRICKELL, C J.
It is a clear principle of law, that the source or fund from which a payment is derived will direct its appropriation ; that is, when money has come from a particular fund, it must be applied in relief of the source from which the fund arises. Thus a mortgagee, receiving from the property, covered by the mortgage, a sum of money, is bound to apply it in extinguishment of the mortgage, and cannot appropriate it to the payment of an unsecured debt he may hold. 1 Amer. Lead, cases, 341, 1 Hilliard on Mort. 278-9. It follows the appellants were bound to apply the moneys received…
2Cases cited2 opinions
- Huckabee v. MaySupreme Court of Alabama · 1848
- Hitchcock v. LukensSupreme Court of Alabama · 1838
3Cited by16 opinions
- W. A. H. Church, Inc. v. HolmesCourt of Appeals for the D.C. Circuit · 1931
- Tompkins v. DrennenSupreme Court of Alabama · 1891
- Levystein v. WhitmanSupreme Court of Alabama · 1877
- Farmers' Sav. Bank v. MurphreeSupreme Court of Alabama · 1917
- Mobley v. Brundidge Banking Co., Inc.Supreme Court of Alabama · 1977
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