Farmers' State Bank v. Van Houten

Defendant, Van Houten, was indebted to James River Bank on a note for $2,400, due March I, 1922, with interest at 10 per cent, which was secured by a chattel mortgage. In September, 1922, by a written agreement, defendant authorized and directed the mortgagee to sell the property at public auction without formal foreclosure, in order to avoid the expense and loss incident to foreclosure, and apply the proceeds on the mortgage debt, accounting to Van Houten for the surplus, if any. This same egreement was considered in James River Bank v. Hansen, 51 S. D. 13, 211 N. W. 976. Pursuant to this…