Sellars v. FIRST COLONIAL CORPORATION

Littlejohn, Justice:

At issue is which of two mortgagees is entitled to $2,684.82 representing receivership monies collected during foreclosure proceedings.

Both plaintiff William E. Sellars, Trustee (Sellars), first mortgagee, and defendant The First National Bank of South Carolina (First National), second mortgagee, acquired a lien on property owned by The First Colonial Corporation, the mortgagor. Both mortgages provided the mortgagee the right, upon default of the mortgagor, to have a receiver appointed to collect rents and profits from the property h> be applied toward payment of the debt.…