Lahey v. Hackley Union National Bank

Plaintiff William P. Lahey was the owner of the Federal Square Building property in Muskegon, Michigan, subject to a first mortgage of $8,000. On February 10, 1931, in order to secure the payment of an indebtedness in the sum of $2,100 to the Hackley Union National Bank, Lahey deeded the property to the bank, receiving in return a land contract for the repurchase of the property for $2,100 and interest. All parties recognized the land contract as a mortgage. On October 23, 1931, approximately three months before the above obligation was to become due, Lahey contracted with defendant Bolhuis…