Exchange Trust Co. v. Oklahoma State Bank of Ada

259 P. 589, 126 Okla. 193, 1927 Okla. LEXIS 113
CourtSupreme Court of Oklahoma
DecidedJune 28, 1927
Docket17202
StatusPublished
Cited by9 cases

This text of 259 P. 589 (Exchange Trust Co. v. Oklahoma State Bank of Ada) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Exchange Trust Co. v. Oklahoma State Bank of Ada, 259 P. 589, 126 Okla. 193, 1927 Okla. LEXIS 113 (Okla. 1927).

Opinion

MONK, C.

The Exchange Trust Company was plaintiff below, is plaintiff in error here, and will hereinafter be referred to as' the Exchange. The Oklahoma State Bank was defendant and cross-petitioner below, is defendant in error here, and will hereinafter be referred to as the Bank.

This is an appeal oy the Exchange from an order of the district court, vacating an order made at a prior term appointing a receiver. The ord'er appealed from, in addition to vacating the order appointing a receiver and discharging the receiver, directed that the funds held by him as such receiver be paid to the Bank.

The following statement is necessary to an understanding of the questions presented on appeal:

On March 11, 1924, the Exchange filed its action in the district court of Pontotoc county, Okla., against C. W. Floyd and Rosa Floyd, the Bank, and other parties, seeking judgment upon two promissory notes and foreclosure of a second mortgage. The mortgage contains the following clause:

“But if the first party, th'eir heirs or assigns, shall iffake default in the payment of any note or notes at maturity, or any interest thereon when due, * * * thereupon this mortgage shall become absolute and the owner of sai¡d indebtedness may immediately cause the mortgage to be foreclosed in the manner prescribed by law, appraisement waived, and. shall be entitled to have a receiver appointed to take charge of the premises, to rent the same and receive and collect the rents, issues and royalties thereof, under direction of the court, and any amount so collected by such receiver shall b'e applied under direction of the court to the payment of any judgment rendered, or amount found due upon foreclosure of thi's mortgage.”

*195 This mortgage was filed for record and recorded on June 2, 1920, in Book 30, at page 429.

The petition contained an allegation that under the mortgage the Exchange was entitled to receive the rents and profits from the land after default, and that the mortgaged premises were probably insufficient in value to pay any judgment which the Exchange might recover; that unless a receiver were appointed to take possession of the property, preserve the same and collect the rents and profits, the plaintiff would suffer irreparable injury; and the petition prayed for the appointment of a receiver.

To this petition the defendants C. W. and Rosa Eloyd filed their answer, and the Bank its answer and cross-petition, asking judgment against the Floyds; and on June 22, 1925, final judgment was rendered in the cause in favor of the Exchange and against the defendants Floyds in the sum of $1,-205.17.

The court, also, upon the cross-petition of the Bank, gave judgment in its favor against the Floyds in the sum of $1,693.38; decreed the Exchange to have a second and the Bank a third lien, and directed the property described in the mortgage to be sold subject to a first mortgage upon the property in the sum of $8,000.

On August 17, 1925, on application of the Exchange, the district court appointed R. E. Carpenter as receiver, “over one-half of the rents arising from the 1925 crops raised upon the premis'es 'described in the petition of plaintiff.” The order appointing receiver was made at the April, 1925, term of the court, which expired, on the 30th day of September, 1925.

On the hearing for appointment of a receiver, it was testified that the indebtedness on the first and second mortgage was $10,649, and in addition to that, delinquent taxes in the sum of $935; that both first" and second mortgages bore six per cent.; that- the second mortgage carried an attorney’s fee of $185; and that the second mortgage had been in default since December, 1923. The aggregate mortgage indebtedness to the Exchange was $11,584.

In support of the application for the appointment of the receiv'er, the following testimony appears;

W. T. Melton said he had known the land for the last 17 years; was familiar with the reasonable cash market value, and that it would not exceed $40 an acre, between $30 and $40, “something like $8,-000”; that the land adjoining the mortgaged premises sold for $35 an acre.

Charles Auten testified he was in the-real estate business; was “pretty well” acquainted with the mortgaged premises; that: $35 an acre would be a “pretty fair value-for it.”

' L. P. Carpenter testified that he was inspector for the Exchange Trust Company,, and acquainted with values of lands in that' vicinity; that he had been over the land the day before; that it was not worth “over $35” an acre, “between $30 and; $40.”

In the hearing of the Bank’s petition to-vacate the appointment of receiver, C. W. Floyd after describing the land, improvements, and the cost o’f making some of the improvements, testified that .the land was worth $65 or $70 an acre; that in 1925 a cotton croj) was raised on the land by Messrs. Young & Burns; that at -the time of the witnesses’ testimony, Burns had half the rent and had given the other half to Carpenter (the receiver) in the sum of $200.

L. A. Braly testified that he was a real estate man, familiar with the value of the mortgaged premises, and that they were worth $10,000.

J. R. Floyd (a defendant under the cross-petition of the defendant Rollow Hardware Company, in the main action, and served by summons issued by said company), testified that the mortgaged premises were worth $65 an acre.

On October 8, 1925, the Bank fil'ed its petition to discharge the receiver, and for an order directing the payment of the monies collected by him in satisfaction of the Bank’s mortgage.

The petition of the Bank, exclusive of caption, signature and indorsements, is as follows:

“Now comes Oklahoma State Bank of Ada, Okla., one of the defendants in the above-entitled cause, and respectfully shows that on August 17, 1925, a receiver was appointed over one-half of the rents for the year 1925 for crops raised on the premises by said defendant, C. W. Floyd, as described in petition of plaintiff; that the property upon which foreclosure had been brought is entirely adequate and sufficient to satisfy the judgment of plaintiff; that your petitioner has a mortgage on the crops for which receiver has been appointed, and •that it furnished the money to raise this crop and the appointment of said receiver *196 and the application of the rents to satisfy the claim in judgment of the plaintiffs will work hardship and irreparable injury to the defendant.
“Wherefore, premises considered, your petitioner asks that said receiver be discharged or that an order be made requiring said receiver to pay the money he has collected on the premises in satisfaction of defendant’s mortgage, and for such other and. further relief as it may be entitled to, and will ever pray.”

No summons was issued or served upon the Exchange after the filing of said petition, but the Bank served the following notice upon th'e Exchange:

“You are notified that the petition for discharge of receiver in this case will be filed and taken up as soon as same can be reached. Dated this.the 7th day of October, ]925.”

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Cite This Page — Counsel Stack

Bluebook (online)
259 P. 589, 126 Okla. 193, 1927 Okla. LEXIS 113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exchange-trust-co-v-oklahoma-state-bank-of-ada-okla-1927.