Collateral Liquidation, Inc. v. Palm

On January 28,1925, defendant Victor Palm executed a promissory note payable on or before three years from date to the order of Robert Oakman in the sum of $2,250. He also gave as collateral security a real-estate mortgage subject to a first mortgage in favor of a bank. The first mortgage was foreclosed in 1934 and the property sold for less than the indebtedness secured thereby. The second mortgage securing the note to Oakman lost its value as collateral security. Payments, including one on August 22, 1932,. were made, reducing the balance still due on the note to $573.37. Plaintiff became…