Crowe v. Covington count on Banking Co. charm from Kenton routine judge; Common Law and Equity unit.
Product Information
Advice
Rodney G. Bryson, Judge.
Sawyer A. Smith for appellant.
Rouse, Cost Adams for appellee.
VIEW OF THIS COURT BY JUDGE RATLIFF
Really appellant, J.M. Crowe, got the owner of 5/20 (1/4) for the stock associated with the Barrington Woods Realty Company, a corporation, hereinafter called the realty company. On March 22, 1922, the realty providers lent of appellee, The Covington confidence and Banking team, hereinafter known as lender, the sum of $13,000 evidenced by thirteen $1,000 records payable on or before 3 years after big date, and protected same by a first financial on the residential property associated with realty team. Before the financing got consummated, besides the mortgage on homes, the stockholders in the realty business, including appellant, performed and brought to the lender the following writing:
«This Arrangement Witnesseth:
«That, Whereas, The Barrington forest Realty providers, an enterprise under the laws regarding the State of Kentucky, was desirous of getting through the Covington Savings financial and Trust business, of Covington, Kentucky, a loan into the amount of $13,000.00, mentioned loan as guaranteed by home financing about belongings of said Realty organization in Kenton district, Kentucky, and
«Whereas, the said Covington discount Bank and depend on Company was prepared to generate said mortgage, given all the stockholders of said Realty Company agree on paper toward execution of home loan securing said loan, and additional agree to indemnify mentioned economy lender and count on business against any reduction, expense or expenses by factor regarding the making of said mortgage;
«today, consequently, in consideration in the making of said financing by stated discount Bank and Trust providers to stated Realty Company, the undersigned, are every stockholders of said Realty Company, would hereby consent with the execution of said home loan and further agree to secure the stated The Covington economy Bank and depend on business safe and harmless from any loss, cost or expenses which will happen by cause of granting of said mortgage, said promise being in amount towards the holdings of a few stockholders in said Realty team, the following:
Whenever the records developed on March 22, 1925, they were perhaps not settled or restored and it seems that absolutely nothing got finished regarding topic until on or about March 25, 1929, of which time, without any involvement or activity on the part of appellant, one other stockholders regarding the realty team additionally the bank made money regarding the notes accomplished in 1922 as well as other issues. Caused by the settlement was actually that realty business accomplished toward bank ten $1,000 newer records because of and payable three-years from go out, or March 25, 1932, and terminated or marked settled the existing records, together with financial that was distributed by the realty company to lock in the outdated notes symbolizing the 1922 $13,000 mortgage premiered from the financial from inside the margin in the mortgage publication in which it had been recorded in the workplace of the Kenton district courtroom clerk, therefore the realty providers accomplished into bank a fresh financial on its property to secure the repayment with the $10,000 latest notes executed March 25, 1929, which financial had been properly recorded during the region court clerk’s company.
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As soon as the ten $1,000 records executed on March 25, 1929, matured on March 25, 1932, no effort was made because of the bank to get the records by foreclosure process in the mortgage or else and apparently absolutely nothing got complete regarding the material until 1938 as soon as the bank sued the realty business to gather the $10,000 mortgage manufactured in March, 1929, in order to foreclose the financial performed of the realty organization to secure the repayment of the identical. Wisdom ended up being made and only the lender together with mortgaged residential property ordered marketed to meet the judgment, interest and value, etc., which was complete, but during that time the assets associated with the realty team were inadequate in order to meet the wisdom together with lender recognized best a little section of its debt, leaving an equilibrium of $8,900 unpaid. In 1940 the financial institution introduced this course of action up against the appellant claiming that $10,000 financing made by it with the realty company in 1929 was only a renewal or expansion associated with the earliest $13,000 loan manufactured in 1922 and sought for to recuperate of appellant 5/20 or 1/4 for the $8,900, or $2,225, shortage which had been appellant’s proportionate express of this original $13,000 loan built in 1922 in writing finalized by appellant in 1922 associated with the first loan.
