Beeler v. American Trust Co.

The evidence in this case is insufficient, in my opinion, to uphold the trial court’s finding that defendant, with a deed of trust on real property worth over $135,000 securing an indebtedness of $81,232.90, entered into an agreement to reduce the indebtedness to $60,000 and to accept an inarticulated mortgage in place of its deed of trust.

*30Since a mortgage secures an obligation it cannot be proved that a conveyance is intended as a mortgage if there is no liability “independent of the conveyance and contract of conveyance, which the grantee can enforce against the grantor.” (4 Pomeroy, Equity…