Holt v. Penacook Savings Bank
Supreme Court of New Hampshire
Bill in Equity, to charge the defendants with the payment of a promissory note, on. which a surety had received a mortgage of indemnity, now held and foreclosed by thfe defendants. Facts found by the court. April 11, 1873, the firm of C. & J. C. Gage gave the plaintiff their promissory note, payable to him or order, and signed by Isaac K. Gage as surety.
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Bill in Equity, to charge the defendants with the payment of a promissory note, on. which a surety had received a mortgage of indemnity, now held and foreclosed by thfe defendants. Facts found by the court. April 11, 1873, the firm of C. & J. C. Gage gave the plaintiff their promissory note, payable to him or order, and signed by Isaac K. Gage as surety. May 19, 1877, John C. Gage, one of the firm, gave to Isaac K. a mortgage of several tracts of land, recorded May 22, 1877, to indemnify and save him harmless from loss by reason of his having become surety or indorser upon the notes mentioned…
1Opinion of the CourtSmith, J.
A mortgage taken by a surety from the principal for the security of the debt creates a trust and equitable lien for the creditor ; and chancery will compel the execution of the trust for the benefit of the creditor. Savings Bank v. Herrick, 62 N. H. 174, and authorities cited. It is no defence to the equitable claim of the creditor that his personal remedy by an action at law against the surety is barred by the statute of limitations; the debt remains in force, and the lien is not discharged until the debt is paid. The creditor has a double remedy, one upon the mortgage to recover the land,…
2Cases cited5 opinions
- Homer v. Savings BankSupreme Court of Connecticut · 1829
- Jones v. Quinnipiack BankSupreme Court of Connecticut · 1860
- Thrall v. SpencerSupreme Court of Connecticut · 1844
- Clark v. ElyNew York Court of Chancery · 1844
- Sumner v. BachelderSupreme Judicial Court of Maine · 1849
3Cited by3 opinions
- Bosse v. Wolverine InsuranceSupreme Court of New Hampshire · 1936
- Barton v. CroydonSupreme Court of New Hampshire · 1885
- White v. Fernald-Woodward Co.Supreme Court of New Hampshire · 1910