42 Neb. 740 | Neb. | 1894
On the 22d day of June, 1891, the Farmers & Drovers Bank of Battle Creek issued to John F. Teidgen a certificate of deposit in the usual form for $5,000, payable September 1, 1891, and bearing interest at eight per cent per annum. On the 9th day of July following said Teidgen, as vice president of said bank, for the purpose of securing the said certificate of deposit executed a mortgage whereby, in behalf of the bank, he conveyed to himself a lot in the village of Battle Creek, owned and occupied by said bank as a place of business, and in which B. Meyel, the cashier, also joined. On the 15th day of the same month the said bank was by this court adjudged to be insolvent and the defendant Edgecombe named as receiver to wind up its business under the direction of the court. On the 11th day of March, 1892, this proceeding was commenced by the plaintiffs, assignees of Teidgen, in the district court of Madison county, to foreclose the mortgage above mentioned. A decree having been allowed by the district court in accordance with the prayer of the petition, the cause was removed into this court upon the appeal of the receiver.
The numerous propositions discussed by counsel in the briefs submitted are included in the one inquiry, viz., is
Q,. State in full and in detail the circumstances under which you deposited the sum of $5,000 with said bank, and whether said bank ever gave you security for the payment of the same; and if so, the character of said security, and whether the amount due on said certificate has ever been paid.
A. At the time I deposited that money, Ben. Meyel, the cashier, came to me at my house while the president was not at home. The president was in Lincoln, Nebraska, and wanted me to advance the bank $5,000. I did not have the money, but drew a sight draft on Ingwersen Bros., and they paid it. The draft was for that sum. Ben. Meyel, the cashier, told me that the bank wanted $5,000 for a couple of months. * * * During that time they agreed to give me a mortgage on the building for $5,000 and have done it. It then run on and Ingwersen Bros, wanted their money, and I assigned the mortgage and certificate of deposit to them and told them to foreclose whenever they pleased. The cashier wrote the mortgage*743 and I signed it as vice president because the president was not there, he being in Lincoln, Nebraska. I don’t know whether the cashier signed the mortgage or not. The mortgage covered the bank building. No part of the certificate of deposit has ever been paid to me. * * *
Q,. State whether or not the cashier, or other officers .of the bank, said anything about giving you a mortgage to cover said certificate of deposit at the time you deposited the $5,000 in the bank; and if so, what was said in regard to it and who said it?
A. The cashier did, if anything should go wrong.
Q. Did the cashier or other stockholder of the bank afterward say anything to you about giving a mortgage, and if so what?
A. I don’t remember what they said, only I got the mortgage. ■
Meyel, the cashier, testified for the plaintiffs as follows:
Q. What was said by you to Teidgen in regard to giving security for this loan?
A. Why I told him at the time we would secure him with the bank building in case the bank should get- tight «or embarrassed so that they was going to close it up.
Q. Now, then, on this day when he advanced this loan, he was not to have security unless the bank should after-wards become embarrassed?
A. No; if the bank was in good sound condition we wouldn’t give him the security and would not want to have it recorded.
Q. Your talk with John Teidgen was to depend upon whether, afterwards, there was danger of the bank going into the hands of a receiver?
A. The bank was in condition then to go into the receiver’s hands. When I borrowed the money the understanding was he was to get security.
Q. But isn’t it a fact if everything went right he was not to have security?
A. Yes.
Reversed and remanded.