Rutherford v. Edward L. Eyre & Co.

It is the plaintiffs' position that in view of the recitals in the mortgages that "the total principal indebtedness secured by this mortgage shall not exceed the sum of $7,600.00", the mortgages were extinguished when $15,200.00 had been advanced and paid, and that any further advances were unsecured, notwithstanding that in the end a balance of some $5,000.00 was still owing by them to the holder of their notes. The defendants contend that this balance, being within the limitation, was secured. The plaintiffs offer no explanation of the purpose and effect of the collateral agreements, other…