135 Misc. 391 | N.Y. Sup. Ct. | 1930
The mortgage sought to be foreclosed contains this clause: “ That in each, every and any case where, pursuant to the provisions of paragraph ‘ Ninth ’ of this mortgage the whole of the principal sum shall become due at the option of the mortgagee, the mortgagee may, at its option elect that a part and not the whole of the principal sum secured by this mortgage shall be due and payable, such election to be made by written notice. If the mortgagee makes such election and declares a part of the principal sum due and payable, it shall in the notice herein provided for, state the amount of principal secured by this mortgage due and payable by virtue of such declaration and may foreclose this mortgage for the amount so declared due; upon such sale in such
The plaintiff has called $10,000 of this mortgage, as taxes have remained unpaid for a longer period than the terms of the mortgage provide. He seeks a judgment which shall provide that the sale be held “ subject to the continuing Hen in the amount of $333,100, of the mortgage partially foreclosed herein, with interest on said sum at the rate of six per cent per annum from the date of sale.”
The referee’s report upon computing shows principal sum due $10,000 and interest op the entire mortgage, amounting to $8,749.05, making a total of $18,749.05 for which the plaintiff asks “ a partial foreclosure,” subject to a continuing Hen of $333,100 and interest. The referee also reports that the original mortgage was for $365,000. and that the principal had been reduced by payments to the sum of $343,100 and that the premises consisted of one parcel, an elevator apartment house.
The attorney for the plaintiff claims authority for the action and the form of judgment by reason of an amendment to section 1086 of the Civil Practice Act, which he. drew himself and had enacted, by Laws of 1927, chapter 683. This section was amended as to title to read as follows, “ Sale when mortgage debt is not all due,” and by adding the following to the section, viz., “ or may, at the option of the mortgagee, direct that the whole property be sold to satisfy the debt then due with the costs of the action and expenses of the sale, subject to the continuing Hen of the mortgage for the amount of the debt not then due and unpaid according to its terms.” The section of the Civil Practice Act appears under the general heading “ action to foreclose a mortgage ” (being art. 65).
The Real Property Law was not amended and has not been