Farnham v. Goldberg

Defendants, the mortgagors, appeal from a judgment for the foreclosure of a real estate mortgage. The only issue is whether they are entitled to credit on the mortgage indebtedness for $700 which they paid to John A. Lane (a mortgage loan broker now bankrupt— for other cases involving him, see McCart v. Schreiber, 176 Minn. 496, 223 N. W. 779) supposing him to have authority from plaintiff as mortgagee to collect or accept payment of the money.

The mortgage and note were executed and became effective August 15, 1923. The $2,500 loan matured five years from date, but with the obligation on…