Prouty v. Price
New York Supreme Court
APPEAL by the defendants from a judgment entered upon the report of a referee in an action brought to foreclose a mortgage. The facts appear in the opinion of the court.
1Opinion of the Court
By the Court,
Welles, J.
It is settled by authority which is obligatory upon this court, that where one person holds a mortgage- on real estate, to secure the payment of money owing to him by the mortgagor, and before the payment of the money secured by the mortgage, the mortgagee becomes indebted to the mortgagor, on book account, a junior incumbrancer, whether general or specific, upon the mortgaged premises, has the right to have such indebtedness due from the mortgagee to the mortgagor, applied in extinguishment of the mortgage debt; and that this right of the junior incumbrancer is…
2Cited by2 opinions
- King v. Milford National BankNew York Supreme Court · 1938
- Holcomb v. CampbellNew York Supreme Court · 1886