Coursey v. Fairchild

McINERNEY, Justice:

The mortgagor (borrower) gave a deed to minerals underlying a portion of mortgaged premises to mortgagee (lender) as additional consideration for lender’s agreement to extend payment on an existing mortgage indebtedness and to accept a renewal note secured by a new mortgage. The question to be decided here is whether this deed was subject to cancellation, on redemption of the land from the lien of the new mortgage, because the mineral conveyance fell within the prohibition of 42 O.S.1961, §§ 10 and 11.

Borrowers, the Fairchilds, are owners of 718 acres of land which were…