Bellows Falls Trust Co. v. Gibbs

Supreme Court of Vermont

Bellows Falls Trust Co. v. Gibbs

534 A.2d 210, 148 Vt. 633, 1987 Vt. LEXIS 518

CourtSupreme Court of Vermont

DecidedSeptember 8, 1987

Docket85-333

StatusPublished

Cited by6 cases

This text of 534 A.2d 210 (Bellows Falls Trust Co. v. Gibbs) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Bellows Falls Trust Co. v. Gibbs, 534 A.2d 210, 148 Vt. 633, 1987 Vt. LEXIS 518 (Vt. 1987).

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Opinion

27 V.S.A. § 141(b) provides that “[w]hen a mortgagee takes an accruing mortgage, the only, debt which shall be secured thereby or become a lien upon the property described therein shall be the debt described in the mortgage and existing at the time of its execution, and any subsequent direct indebtedness of the mortgagor to such mortgagee; . . . .” (Emphasis added). The subsequent indebtedness here was incurred by only one of the mortgagors, see 1 V.S.A. § 175, and thus could not become a lien upon the nonconsenting mortgagor’s interest in the property.

In Vermont, tenants by the entirety are viewed as being individually vested, under a legal fiction, with title to the whole estate. Preston v. Chabot, 138 Vt. 170, 174, 412 A.2d 930, 932 (1980). Neither spouse has a share which can be disposed of or encumbered without the joinder of the other spouse. Id. Therefore, we conclude that the note executed on July 10, 1980 was not secured by either Mr. Gibbs’ or Mrs. Gibbs’ interest in the property at issue.

Reversed.

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27 V.S.A. § 141(b) provides that “[w]hen a mortgagee takes an accruing mortgage, the only, debt which shall be secured thereby or become a lien upon the property described therein shall be the debt described in the mortgage and existing at the time of its execution, and any subsequent direct indebtedness of the mortgagor to such mortgagee; . . . .” (Emphasis added). The subsequent indebtedness here was incurred by only one of the mortgagors, see 1 V.S.A. § 175, and thus could not become a lien upon the nonconsenting mortgagor’s interest in the property.

In Vermont, tenants by the entirety are viewed as being individually vested, under a legal fiction, with title to the whole estate. Preston v. Chabot, 138 Vt. 170, 174, 412 A.2d 930, 932 (1980). Neither spouse has a share which can be disposed of or encumbered without the joinder of the other spouse. Id. Therefore, we conclude that the note executed on July 10, 1980 was not secured by either Mr. Gibbs’ or Mrs. Gibbs’ interest in the property at issue.

Reversed.

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Bluebook (online)

534 A.2d 210, 148 Vt. 633, 1987 Vt. LEXIS 518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bellows-falls-trust-co-v-gibbs-vt-1987.

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