First National State Bank of New Jersey v. Barker

By its decision the majority has held in effect that the mere existence of a creditor life insurance policy ipso facto gives rise to extinguishment of the debt secured by a mortgage upon the death of the mortgagor-insured. Such a decision is erroneous.

In opposition to this foreclosure proceeding under executory process brought by the mortgagee, the surviving widow successfully obtained a preliminary injunction of the seizure and sale, without furnishing bond and, therefore, pursuant to Code of Civil Procedure Article 2753, which enumerates five exclusive grounds for such injunctive relief.…