Federal Land Bank of Omaha v. Ditto

Prior to January 24, 1925, the defendant A. J. Ditto was the owner of 80 acres in Guthrie county. This land was incumbered with a first mortgage of $5,000, and a second mortgage, to R. H. Lacy, of $4,325. On that date Ditto borrowed $7,000 from plaintiff, giving a note and mortgage on the land; and paid the $5,000 mortgage and reduced the Lacy indebtedness to $2,625, giving a mortgage to Lacy which was junior and inferior to plaintiff’s mortgage. The mortgage to plaintiff, dated January 24, 1925, was in the usual form and contained an acceleration clause, and was due and payable in…