Bermes v. Kelley

The inquiry here presented is whether a first or a second mortgagee is entitled to receive money which has been collected by a receiver in foreclosure as rents of the mortgaged premises.

Both mortgages contain the usual clause pledging the rents, issues and profits of the mortgaged premises. The second mortgagee filed a bill to foreclose his mortgage and procured from the court an order appointing a foreclosure receiver to collect the rents. In that suit and proceeding the first mortgagee was not a party. Subsequently the first mortgagee filed its bill to foreclose, making the second mortgagee…