Wayne National Bank v. National Bank of LaGrange

The defendant makes the point that it has an equitable claim to the insurance fund, to the extent of the indebtedness due it, by reason of the provision in its mortgage that the mortgagor would insure the buildings for its benefit; and to support this position the defendant cites Wheeler v. Factors’ and Traders’ Insurance Co., 101 U. S. (11 Otto), 439, 25 L. Ed., 1055.

We understand tbe principle to be that as a rule a mortgagee has no right to tbe benefit of a policy taken by tbe mortgagor, in tbe absence of an agreement to this effect, unless tbe policy is assigned to him; but where the…