U.S. Supreme Judge
1. A stipulation in a Farm financing home loan that, in the event of suit to foreclose, the mortgagor shall spend a reasonable lawyer’s charge to get set of the judge, was appropriate underneath the Federal Farm financing work if appropriate underneath the state rules. P. 292 U. S. 54 .
2. The purpose of the Farm financing operate is make it easy for producers, by mortgaging her lands, to obtain debts at inexpensive, which reason is usually to be observed in deciding something a fair lawyer’s cost in a property foreclosure proceeding. P. 292 U. S. 57 .
Certiorari, 290 U.S. 620, to review the affirmance of a decree foreclosing a farm financing home loan wherein the test courtroom had would not apply a stipulation for a legal professional’s http://paydayloanstexas.net/cities/jasper fee.
U.S. Supreme Legal
Government Land-bank of Berkeley v. Warner
CERTIORARI INTO THE GREAT COURTROOM OF ARIZONA
1. A stipulation in a Farm Loan home loan that, in case there are suit to foreclose, the mortgagor shall pay an acceptable lawyer’s cost become set from the courtroom, are appropriate beneath the government Farm financing Act if legitimate under the state law. P. 292 U. S. 54 .
2. the intention of the Farm mortgage work is to permit growers, by mortgaging their unique lands, to get loans at low priced, and also this objective will be noticed in deciding understanding a reasonable attorney’s cost in a property foreclosure proceeding. P. 292 U. S. 57 .
Certiorari, 290 U.S. 620, to examine the affirmance of a decree foreclosing a farm loan home loan in which the test legal have would not implement a stipulation for an attorney’s charge.
MR. JUSTICE BUTLER delivered the thoughts of judge.
Participants gave petitioner home financing to their farm countries in Arizona to protect a loan of $7,200 made in accordance with all the Farm Loan Act. [Footnote 1] The home loan supplies that, in case of fit to foreclose, the mortgagors shall spend a reasonable attorneys’s fee to be fixed of the court. And that clause is valid under Arizona laws. [Footnote 2] The consumers having didn’t spend per her promise, petitioner delivered this fit to foreclose the home loan and prayed that an attorney’s cost of $125 be contained in the wisdom. Respondents objected into allowance of every quantity on account of that item, the test judge sustained their contention, therefore the great court kept that a portion of the decree upon the ground that assortment of such a charge was prohibited by soon after section of § 31: “No land-bank . . . shall recharge or get any cost, percentage, bonus, surprise, or other factor perhaps not herein especially authorized.” 12 U.S.C. § 983.
That development is not suffered. The Act establishes cooperation between borrowers on farm mortgage loans and dealers into the securities guaranteed by them. The necessity, through the financial provision, that a mortgagor shall keep the expense put-upon the bank by his standard is reasonable, plus harmony with this idea.
For the absence of an ordinary expression compared to that influence, may possibly not end up being conducted that Congress meant to put-upon nondefaulting consumers any part of the expense of property foreclosure of mortgage loans produced by other people. The work will not prescribe legal proceeding for foreclosures, but indicates that state statutes should be regulate. Part 30 guides the land-bank administrator to examine the laws of each condition also to report, on top of other things, whether, in the viewpoint, these are typically particularly to safeguard against reduction in case of default. 12 U.S.Code, § 971. It provides that, if examination shall show that the guidelines of any dont pay for adequate security, the Farm credit score rating Administration may declare mortgages on secure because State ineligible. Rule, § 972. Additionally the petition because of this writ suggests that, except in a few States in which neighborhood legislation prohibits these types of contracts, all the mortgages used from the government secure Finance companies consist of stipulations for lawyer’s fees for property foreclosure. [Footnote 3] out of this it seems that officials charged by-law with all the administration in the finance companies have always construed the Act to allow condition laws to regulate. Our very own attention will not be also known as to your situation where that building has-been asked. It’s eligible to great lbs. Us v. Mo. Pac. R. Co., 278 U. S. 269 , 278 U. S. 280 .
