Germania Building & Loan Ass'n v. B. Fraenkel Realty Co.
New Jersey Court of Chancery
Heard .on bills, answers and cross-bills and replications and proofs. These two cases (consolidated for the purpose of hearing) are foreclosures of two advance money mortgages given to a building and. loan association by a realty company, one of its shareholders, on procuring the loans, and the principal question is whether a certain order given by the realty company on thie association for $1,165, which order was paid by the association, can properly he charged as an…
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Heard .on bills, answers and cross-bills and replications and proofs. These two cases (consolidated for the purpose of hearing) are foreclosures of two advance money mortgages given to a building and. loan association by a realty company, one of its shareholders, on procuring the loans, and the principal question is whether a certain order given by the realty company on thie association for $1,165, which order was paid by the association, can properly he charged as an advance under the mortgages. The propriety of the payment and the validity of the order is disputed by the answers and…
1Opinion of the Court
Emery, V. C.
(after statement of facts and issues).
Mortgages to secure future advances are valid, but where it is entirely optional with the mortgagee, whether to. make future advances or not, advances made after notice of a subsequent encumbrance or transfer are not chargeable. Heintze v. Bentley, 34 N. J. Eq. (7 Stew.) 562, 566 (Court of Errors and Appeals, 1881). This case at bar raises the different question as to the rights of conflicting claimants under the mortgagor where, on the *59delivery of the mortgages the advance was not optional. On the facts above stated, and in view of the…
2Cited by6 opinions
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- LINCOLN FED'L S. & L. ASS'N v. Platt Homes, Inc.New Jersey Superior Court Appellate Division · 1982
- Rosenthal & Rosenthal, Inc. v. Vanessa BenunNew Jersey Superior Court Appellate Division · 2015
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