80 Iowa 112 | Iowa | 1890
— The record shows that on the twenty-second day of June, 1881, the defendant Mary E. Aikin made a contract with T. C. Gilpin for the purchase of eighty acres of land. She paid Gilpin two hundred dollars in cash, and for the balance of the purchase money she gave him her four promissory notes payable at different dates. The last note became due July 1, 1884. The whole consideration agreed to be paid for the land was $1,168.50. Gilpin executed to
It appears from the evidence in the case that T. C. Gilpin is an attorney and loan broker, and that he had been placing loans upon real estate for the mortgagee, Johnson, who is a resident of the state of New York. This loan from Johnson was negotiated in the usual way, and the money realized from the loan was paid directly to Gilpin as a part of the purchase money of the land. Aikin made his loan to pay the balance of the purchase money, and the money was paid to Gilpin. If Mary E. Aikin had borrowed the money of the mortgagees as an independent transaction, and without reference to her indebtedness for the land, and executed the mortgages, it may be that the judgment would be a prior lien. But the borrowing of the money and the making of the deed and mortgages were all parts of the same transaction. The fact is, Mrs. Aikin did not receive any of the money. It was applied directly to the payment of the purchase money. If the mortgages, had been given to Gilpin, there can be no question that they would have been liens prior to the judgment; and it is a well-settle equitable rule that,
Affieme».