Kowatch v. Home Building & Loan Ass'n

Opinion by

Baldrige, J.,

The appellants herein filed a bill in equity which contained the following averments:

On March 29, 1923, the appellants executed a mortgage and bond in the penal sum of $2,400, in favor of the defendant association. They became delinquent in the payment of the installments, interest and premiums, and on July 23, 1925, executed an additional mortgage and bond in the penal sum of $600. The greater part of the proceeds of this second loan was applied to payments in arrear on the first mortgage. The assessment and collection of the premiums and fines were illegal in that…