People ex rel. 342 East 57th Street Corp. v. Miller

I do not agree that the rents received from the mortgagor by the Metropolitan Life Insurance Company became its absolute property either in law or in equity. They were paid to the Metropolitan as further security for the mortgage to be used at its option only for the payment of taxes or the interest on the mortgage, or both. For any surplus that remains after payment of the taxes and any arrears of interest the Metropolitan must account.

The owner who has paid excessive taxes is entitled to the refund even after he has parted with title to the property. (Tax Law, § 296.) The taxes on which the…