Beloate v. New England Securities Co.

• Decision Date: 20 October 1924
• Docket Number: (No. 177.)
• Citation: 265 S.W. 83
• Parties: BELOATE et al. v. NEW ENGLAND SECURITIES CO. et al.
• Court: Arkansas Supreme Court

265 S.W. 83

BELOATE et al. v. NEW ENGLAND SECURITIES CO. et al.

(No. 177.)

Supreme Court of Arkansas.

October 20, 1924.

Appeal from Lawrence Chancery Court; Lyman F. Reeder, Chancellor.

Suit by New England Securities Company and another against W. E. Beloate and another to foreclose a trust deed. From a decree of foreclosure and sale, defendants appeal. Affirmed.

E. H. Tharp, of Walnut Ridge, for appellants.

Ponder & Gibson, of Walnut Ridge, for appellees.

McCULLOCH, C. J.

This is an action to foreclose a mortgage, or deed of trust, on real estate. The land in controversy was owned by T. J. Draper and his wife, Anna, and on January 1, 1919, they borrowed the sum of $2,100 from appellee New England Securities Company, and executed a note for the same, due and payable five years after date, with interest coupons payable annually. They also executed a deed of trust to appellee T. C. Alexander, conveying the land in controversy, as security for the debt. Prior to the commencement of this action the Drapers sold and conveyed the land to appellant W. E. Beloate, the latter assuming, as a part of the consideration for the conveyance, to pay off the mortgage. The action was instituted by the New England Securities Company and T. C. Alexander, trustee, against Beloate and the Drapers.

It is alleged in the complaint that the New England Securities Company is the owner of the note with interest coupons, that default had been made in paying some of the coupons when due, and that the lands in controversy had been sold for taxes, and that the same had been redeemed by the New England Securities Company, the sum of $357.02 being paid out in effecting the redemption. The notes and deed of trust contained an accelerating clause providing that all of the debt should be declared due on default in the payment of any interest coupon.

On January 24, 1919, the New England Securities Company assigned the debt to Mrs. Mary E. Wells Cady by indorsement, and by a separate written assignment, in which the assignor undertook to "look after the collection of the interest as it falls due, and the principal at maturity, and to remit same; to keep insurance in force for and on behalf of the holder thereof according to the provisions of the deed of trust securing the bond; to make an annual examination of the tax books and to report any delinquencies; and to advise the holder hereof of the status of the borrower and the condition of the security whenever deemed necessary, hereby guaranteeing the deed of trust securing this bond to be a first and valid lien upon the premises described therein." Appellant Beloate filed an answer in which he denied that the New England Securities Company was the owner of the debt, and denied the right of the company to declare maturity of the same, or to pay the taxes on the land and assert a...