214 N.W. 485 | Iowa | 1927
One Carpenter owned a farm of 240 acres in *1378 Poweshiek County. The appellee held a mortgage on said premises for the principal sum of $24,000. The mortgage was in default, and there is no question of the appellee's right to a foreclosure of the same against the real estate. In October of 1925, Carpenter and his wife executed to the appellant bank a quitclaim deed to said real estate, and shortly thereafter held a public sale upon said premises, and then removed to Dakota, taking a carload of personal property. The mortgage contained the following clause:
"It is further agreed that the rents, issues and profits of said property are also pledged as security for the payment of the indebtedness above mentioned; and upon the maturing of said indebtedness, whether occasioned by lapse of time or by the occurrence of any of the defaults above mentioned, the mortgagee or its assigns, shall be at once entitled to the possession of the mortgaged property, and any court having jurisdiction in any suit to foreclose this mortgage shall have the power and right to appoint a receiver to collect the said rents, issues and profits arising from said property during such foreclosure suit, and during the year allowed by law for redemption after judicial sale, and apply the net profits thereof after deducting all costs of such proceedings, upon the indebtedness secured hereby."
By an amendment to the petition it is alleged that the buildings and improvements on said premises have not been kept in good repair; that there is danger that waste will be committed; that the mortgagors Carpenter have no property in the state of Iowa, and have removed from the jurisdiction of the courts of this state; that the taxes are delinquent; that the whereabouts of Carpenter are unknown to the plaintiff (appellee). Appellants' brief contains the following frank statement:
"The appellant concedes that the showing made by the mortgagee discloses that the value of the mortgaged premises is not any more than sufficient to pay the mortgage debt, and that the security is, in fact, inadequate."
The sole question involved in this appeal is whether or not, upon the record made, the court erred in appointing a receiver. Appellants' contention is that, so far as the record shows, Carpenter may be the owner of other land or personal property, *1379 and that the proof of insolvency was not sufficient to justify the appointment of a receiver.
Even where the rents and profits are pledged as security for the mortgage indebtedness, and the mortgage provides by its terms for the appointment of a receiver in the event of foreclosure, it is the general rule that the appointment of a receiver rests within the sound discretion of the court, to determine whether such appointment is necessary and proper, under all the circumstances. Young v. Stewart,
The decree of the trial court is in all respects — Affirmed.
EVANS, C.J., and STEVENS, VERMILION, and KINDIG, JJ., concur. *1380