President & Co. of the Mahaiwe Bank v. Culver
New York Court of Appeals
One Backus Culver was indebted to the plaintiff, upon notes discounted by the bank, to the amount of $4,000. He applied to the bank for an extension of his indebtedness, and proposed as security to give a bond and mortgage on his farm in Amenia. This the plaintiff declined to accept without a covenant of security that the farm was worth enough to pay the mortgage offered. There were at the time incumbrances on the farm,—one mortgage for $10,000, and others.
Read the full summary
One Backus Culver was indebted to the plaintiff, upon notes discounted by the bank, to the amount of $4,000. He applied to the bank for an extension of his indebtedness, and proposed as security to give a bond and mortgage on his farm in Amenia. This the plaintiff declined to accept without a covenant of security that the farm was worth enough to pay the mortgage offered. There were at the time incumbrances on the farm,—one mortgage for $10,000, and others. Culver gave a covenant to the plaintiff, signed by the defendant, his son, by which the defendant covenanted with the plaintiff for the…
1Opinion of the Court
The only questions raised in this case are in regard to the construction of the covenant of the defendant; and if the construction contended for by the defendant is the correct one, whether the title to the farm of Backus Culver was defective. The covenant contained two provisions: one that the farm would if the title of Backus Culver to it was good, sell for enough to cover the prior mortgages and the one due to the bank, and the other that if upon foreclosure of either of the mortgages there should be a deficiency in the amount applicable to the plaintiff's mortgage he, the defendant, would…
2Cited by3 opinions
- Hayes v. . NourseNew York Court of Appeals · 1889
- Brown v. Mayor of New YorkNew York Supreme Court · 1874
- McDonald v. Mayor of New YorkNew York Supreme Court · 1874