State v. Wiley
Supreme Court of Iowa
Appeal from Allamakee District Gourt. This action .is brought to recover the interest due upon a note given for money borrowed of the School Fund. The defendants who answer and appeal were sureties.
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Appeal from Allamakee District Gourt. This action .is brought to recover the interest due upon a note given for money borrowed of the School Fund. The defendants who answer and appeal were sureties. In their answer they set up the following matters of defense: That at the time they signed the note, the borrower and Fund Commissioner assured them that the law in relation to the property mortgaged by their principal, had in all respects been complied with; that said property had been properly appraised, and the security in real estate had been given, by reason of which representations they were…
1Opinion of the CourtWright, J.
Upon several grounds, we think this demurrer was properly sustained.
It was as much the duty of appellants, for their own protection, as of the Fund Commissioner, to see that the loan was secured by mortgage on unencumbered real property. A failure on the part of the officer, in taking such security, to comply with the requirements of the statute, would not, in the absence of fraud, release them from their liability. Nor would a failure to have the property appraised, affect the validity of the mortgage. There is no pretense that defendants did not know the value of the property mortgaged, but…
2Cited by1 opinion
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