Tahoe National Bank v. Phillips

*14Opinion

TOBRINER, J.

Defendant Beulah F. Phillips appeals from a judgment of the El Dorado County Superior Court that holds that an instrument entitled, “Assignment of Rents and Agreement Not to Sell or Encumber Real Property” (hereinafter referred to as “the assignment”) was intended to be an equitable mortgage, and decrees its foreclosure.

We conclude that this judgment must be reversed. Plaintiff bank, which occupied the more powerful bargaining position and deliberately chose to use a standardized form providing for the assignment of rents and a covenant against conveyances, cannot be…