Crowe v. Covington confidence financial Co. Appeal from Kenton routine courtroom; Common Law and money Division.
Crowe v. Covington confidence financial Co. Appeal from Kenton routine courtroom; Common Law and money Division.
Crowe v. Covington <a href="https://rapidloan.net/installment-loans-va/">2600 installment loans Virginia</a> confidence financial Co. Appeal from Kenton routine courtroom; Common Law and money Division.

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Rodney G. Bryson, Assess.

Sawyer A. Smith for appellant.

Rouse, Terms Adams for appellee.

OPINION OF THIS COURT BY JUDGE RATLIFF

The appellant, J.M. Crowe, ended up being the master of 5/20 (1/4) for the inventory associated with Barrington forest Realty providers, a corporation, hereinafter called the realty team. On March 22, 1922, the realty team borrowed of appellee, The Covington rely on and Banking providers, hereinafter known as bank, the sum $13,000 confirmed by thirteen $1,000 records payable on or before 3 years after big date, and protected exact same by a first financial regarding residential property with the realty business. Before the financing is consummated, in addition to the financial in the home, the stockholders regarding the realty providers, such as appellant, executed and delivered to the lender here writing:

"This Contract Witnesseth:

"That, while, The Barrington forest Realty business, an agency within the legislation from the condition of Kentucky, are desirous of obtaining from Covington economy financial and depend on Company, of Covington, Kentucky, that loan inside the amount of $13,000.00, said loan become guaranteed by a home loan on home of said Realty organization in Kenton district, Kentucky, and

"Whereas, the said Covington economy Bank and believe team is happy to making stated financing, given most of the stockholders of said Realty Company agree on paper towards execution of financial securing mentioned loan, and further consent to indemnify mentioned Savings Bank and count on business against any loss, cost or costs by factor of the generating of said mortgage;

"Now, consequently, in consideration associated with generating of said mortgage by mentioned Savings Bank and confidence providers to stated Realty providers, the undersigned, becoming all of the stockholders of said Realty Company, create hereby consent to your performance of said financial and additional say yes to support the said The Covington economy financial and depend on team as well as ordinary from any reduction, expense or expenditure that could develop by reasons of approving of said mortgage, stated guarantee in proportion with the holdings of the a few stockholders in said Realty providers, as follows:

As soon as the notes matured on March 22, 1925, these were perhaps not compensated or renewed and obviously little is completed towards material until on or about March 25, 1929, at which opportunity, without having any engagement or actions for appellant, another stockholders associated with the realty team while the financial made money in regard to the records accomplished in 1922 and various other issues. The consequence of the payment is that realty organization executed for the financial ten $1,000 brand new notes due and payable 36 months from time, or March 25, 1932, and cancelled or noted paid the old records, additionally the home loan which had been distributed by the realty providers to protect the existing records representing the 1922 $13,000 loan premiered of the financial in the margin regarding the financial book in which it was taped in the workplace on the Kenton county legal clerk, and also the realty providers executed to the financial a fresh home loan on the residential property to lock in the payment regarding the $10,000 newer notes accomplished March 25, 1929, which mortgage ended up being properly tape-recorded from inside the region courtroom clerk's company.

As soon as the ten $1,000 records accomplished on March 25, 1929, matured on March 25, 1932, no efforts was developed by bank to get the notes by property foreclosure legal proceeding about home loan or else and it seems that little is done about the point until 1938 as soon as the bank prosecuted the realty providers to collect the $10,000 financing made in March, 1929, and to foreclose the financial performed by realty team to secure the cost of the same. Wisdom ended up being made and only the bank in addition to mortgaged belongings ordered sold in order to meet the wisdom, interest and value, etc., which had been complete, but at that time the possessions of this realty organization happened to be insufficient in order to meet the judgment plus the financial understood just a small part of its debt, making an equilibrium of $8,900 unpaid. In 1940 the bank brought this action against the appellant claiming that the $10,000 loan made by it to the realty company in 1929 was only a renewal or extension of the original $13,000 loan made in 1922 and sought to recover of appellant 5/20 or 1/4 of the $8,900, or $2,225, deficit which was appellant's proportionate share of the original $13,000 loan made in 1922 under the writing signed by appellant in 1922 in connection with the original loan.

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