City of Aurora v. Cobb

21 Ind. 492
CourtIndiana Supreme Court
DecidedNovember 15, 1863
StatusPublished
Cited by21 cases

This text of 21 Ind. 492 (City of Aurora v. Cobb) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Aurora v. Cobb, 21 Ind. 492 (Ind. 1863).

Opinion

Perkins, J.

This suit, commenced in the Dearborn, and taken, by change of venue, to the Union Circuit Court, was instituted for the foreclosure of a mortgage, alleged to have been executed to secure the performance of the condition of a certain bond, reading as follows:

“Know all men by these presents, that we, John Cobb and Oliver P. Cobb, of the county of Dearborn, and State of Indiana, are held and firmly bound unto the city of Aurora, in the penal sum of 60,000 dollars, for the payment of which, well and truly to he made and done, we bind ourselves, our heirs, executors, administrators, and assigns, jointly and sev[494]*494©rally, by these presents. Sealed with our seals, and dated this third day of June, in the year of our Lord one thousand eight hundred and fifty-three:
“The condition of the above obligation is such that: "Whereas the city of Aurora has executed to the Ohio and Mississippi Railroad Company thirty bonds of said city of Aurora, dated the first day of January, in the year 1853, and numbered from one to thirty, for 1,000 dollars each, payable twenty-five years from date, bearing interest at the rate of six per cent. per annum, payable annually, on the first day of January, at the North River Bank, in the city of New York, which said bonds were executed by the city of Aurora to said railroad company, in part payment of a subscription of 50,000 dollars to the capital stock of said railroad company, made by said city of Aurora, by order of the city council of the city of Aurora, in which said bonds there is a stipulation, that the holders of said bonds should have a lien on the stock of said city, in said company, for which said bonds were received in payment; and that the holders of said bonds might exchange the same for a like amount of said stock at any time before the first declaration of a cash dividend, and be substituted as stock holders in place of said city, upon the surrender of any portion of said bonds; and whereas, the city of Aurora, in pursuance of an order of her city council, passed on the 3d day of June, 1853, has this day executed to the said John Cobb and Oliver B. Cobb a contract or deed, conveying, assigning and transferring to said John Cobb and Oliver P. Cobb all the right, title, interest and claim of said city of Aurora, in and to 30,000 dollars of the said stock subscribed by her in said railroad company, and represented by her said thirty bonds of said city, for 1,000 dollars each, and numbering from one to thirty, and dated and conditioned as aforesaid, with full right and authority on the part of said John Cóbb and Oliver P. Cobb to receive the eight per centum inter[495]*495est in stock, upon said 30,000 dollars of stock, represented by tbe aforesaid bonds, until said company shall make a declaration of a cash dividend by said company, unless the holders of said bonds shall substitute themselves as stock holders, in the place of said city, by surrendering said bonds before the first declaration of a cash dividend; that the said John Cobb and Oliver P. Cobb should become the assignees and owners, absolutely, of the 30,000 dollars of the stock represented by said bonds, with full right and authority to receive the dividends, profits and advantages arising from the ownership of said stock, which contract was executed on behalf of said city to the said John Cobb and Oliver P. Cobb, in consideration that the said John Cobb and Oliver P. Cobb would assume all the obligations and liabilities on the part of said city of jtyirora, on account of the principal and interest of the aforesaid bonds, and indemnify her against the principal and interest of said bonds by this bond, and by mortgage on real estate in the city of Aurora, a description of which is contained in a mortgage executed by the said John Cobb and Oliver P. Cobb, and their wives, to the city of Aurora, and bearing even date with these presents, and in consideration that the said John Cobb and Oliver P. Cobb would give to said city a lien upon said 30,000 dollars of stock in case the holders of said bonds should not substitute themselves as stock holders before a declaration of a cash dividend as aforesaid: Now, if the said John Cobb and Oliver P. Cobb shall well and truly pay, or cause to be paid, all the interest that may accrue on said bonds, numbered from one to thirty inclusive, for which the said city of Aurora may in any way be liable, according to the tenor and effect of said bonds, and save the city of Aurora harmless on account of the interest accruing upon said bonds as aforesaid; and in case the holders of said bonds shall fail to surrender said bonds, and substitute themselves as stock holders as to all or any portion of said bonds, [496]*496before a declaration of cash dividends: If the said John Cobb and Oliver P. Cobb shall and do pay the principal and interest of said bonds that may not have been surrendered as aforesaid, and save said city of Aurora harmless on account of the principal and interest of said bonds, then this obligation to be void, else to remain in full force and virtue in law.
“ "Witness, &c., the day and year first above written.
“Oliver, P. Cobb, [seal].
“John Cobb, [seal].”

Breaches of non-payment, &c., were assigned, and 3,500 dollars claimed as damages.

The condition of the mortgage, sought to be foreclosed, is as follows : “Provided, always, and these presents are expressly upon this condition: that, whereas, the said John Cobb and Oliver P. Cobb have executed to the city of Aurora their bond, in the penal sum of 60,000 dollars, bearing even date with these presents, and conditioned, among other things, that the said John Cobb and Oliver P. Cobb should pay the principal and interest of thirty bonds, executed by the city of Aurora to the Ohio and Mississippi Railroad Company, for 1,000 dollars each, in payment of stock in said railroad company, this day sold and assigned by said city of Aurora to the said John Cobb and Oliver P. Cobb, and save the said city of Aurora harmless on account of the principal and interest of said thirty bonds aforesaid, for 1,000 each, and numbered from one to thirty inclusive. Now, if the said John Cobb and Oliver P. Cobb shall well and truly pay, or cause to be paid, the principal and interest of said thirty bonds for 1,000 dollars each, and numbered from one to thirty, according to the tenor and effect of their bond aforesaid, executed by them to the city of Aurora, and save said city harmless on account of the principal and interest of said thirty bonds of said city of Aurora, for 1,000 dollars each, and numbered as aforesaid, [497]*497and shall well and truly keep and perform all the conditions ., and covenants on their part to be kept and perfoi’med in and by said bond, executed by them to said city of Aurora, in the penal sum of 60,000 dollars as aforesaid, then this obligation to be void, otherwise to remain in full force and virtue in law.”

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Bluebook (online)
21 Ind. 492, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-aurora-v-cobb-ind-1863.