7 S.E.2d 178 | Ga. | 1940
1. The evidence in the present cases shows that the plaintiff's father had no title to the property in question on the date of his death. It follows that she took no title thereto as an heir.
2. Where the grantor in a security deed makes a valid assignment of a policy of insurance on his life to the grantee as further security for the debt and dies, the application of a sufficient amount of the proceeds of the policy to cover the debt extinguishes it and renders the security deed functus officio. A purported transfer of the security deed to certain persons named in the policy as beneficiaries is without legal effect.
3. The plaintiff showed no title to or interest in the property in question. This being true, the judge did not err in directing the verdict in favor of the defendant.
1. The plaintiff's action is based upon the premise that she held title to one-eighth undivided interest in the land at the time Mrs. Burch, acting as her guardian, executed the deed thereto in favor of William E. Burch. Her claim of title to or interest in the land appears to be twofold. First, that she and the individual defendants inherited the property from J. B. Burch who died in June, 1925, and, second, that in July, 1925, she and said defendants paid off a certain security deed which had been executed by the deceased to the Penn Mutual Life Insurance Company (hereinafter referred to as the insurance company), and by proper transfer became the joint legal owners thereof. These claims, however, are controverted by the facts disclosed. It appears that J. B. Burch, the father of plaintiff, owned the land and in 1919 conveyed it to the insurance company to secure a loan. Thereafter in May, 1924, he conveyed it by warranty deed to Roger Burch. In July of the same year Roger Burch conveyed it to Mrs. Jennie Burch, who in turn on January 14, 1926, conveyed it to William E. Burch. These deeds were duly recorded and their genuineness and validity are not questioned. It accordingly affirmatively appears that John B. Burch at the date of his death held no title to or interest in the land which could have descended to plaintiff as an heir. An owner of property may, after the execution of a security deed, convey his equity of redemption to a third person, and upon doing so he has no further title or interest therein. Chason v. O'Neal,
2. The plaintiff's remaining claim of title to or interest in the property is under a purported transfer by the insurance company to her and the individual defendants of the security deed executed to it by the deceased. In this connection it appears that plaintiff's father was the holder of an insurance policy issued by the insurance company, which was in excess of the amount due under the security deed. The plaintiff and the individual defendants were named in the policy as the beneficiaries, but the insured had executed an assignment of the policy to the insurance company as further security for the debt. After the death of the insured the insurance company issued a check in the amount of the policy payable *609 to the beneficiaries, which was indorsed to the insurance company (Mrs. Burch acting for the plaintiff as her guardian) for the purpose of paying off the loan due it by the deceased. The insurance company retained out of the check the amount due on the loan and paid the beneficiaries the difference. Five days thereafter the insurance company assigned the security deed to plaintiff and the individual defendants.
A policy of life insurance is a chose in action and assignable by the insured as security for a debt under Code, §§ 56-903, 85-1803, prior to his death. Steele v. Gatlin,
The result of what has been ruled above is that the judge directed the only legal verdict that could have been had in the case. Since these rulings dispose of the case, it is unnecessary for us to determine what would have been the rights of the plaintiff had she been the lawful transferee of the security deed executed by the deceased to the insurance company, and whether those rights would embrace the character of relief sought in the petition.
Judgment affirmed on the main bill of exceptions. Cross-billdismissed. All the Justices concur.