Henry v. Davis & Clark
New York Court of Chancery
THE bill stated, that the defendant, Z)., executed to the plaintiff, on the 8th of February, 1809, a bond and mortgage, to secure the payment of 1065 dollars and 3 cents, on the 1st of June, 1821, with interest.
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THE bill stated, that the defendant, Z)., executed to the plaintiff, on the 8th of February, 1809, a bond and mortgage, to secure the payment of 1065 dollars and 3 cents, on the 1st of June, 1821, with interest. That on the 16th of February, 1820, the plaintiff, being indebted to the defendant C., in 225 dollars, assigned over the bond and mortgage, by way of pledge or security for the payment of the last sum, to the defendant, C., on the 1st of October, 1820. The assignment was absolute in terms; but it was the agreement of the parties, that the assignment was to be considered by way of…
1Opinion of the Court
The Chancellor.
It is clearly established, by the answer and the proofs, that the bond and mortgage were assigned by the plaintiff to the defendant C., by way of mortgage, to secure the payment of225 dollars by a given day; and any agreement that the assignment was to be an absolute sale, without redemption, upon default of payment on the day, was nnconscientious, oppressive, illegal, and void. The equity of redemption still existed in the plaintiff, notwithstanding any such agreement. There is no principle in equity better settled, than that every contract for the security of a debt, by the…
2Cited by22 opinions
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- Ray's Adm'r v. WombleSupreme Court of Alabama · 1876
- Holden Land & Live Stock Co. v. Inter-State Trading Co.Supreme Court of Kansas · 1912
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