146 Iowa 25 | Iowa | 1910
The defendant borrowed $4,000 of plaintiff, his wife’s mother, and executed his promissory note therefor, bearing interest at five percent per annum, dated March 4, 1907, and payable on or before five years thereafter. To secure payment, he executed a mortgage on forty acres of land, therein stipulating that:
Said mortgagor shall, while any part of said principal or interest remains unpaid, pay all taxes on said mortgaged premises before they become delinquent, and he shall keep the buildings thereon insured to the satisfaction of the mortgagee, and the policy payable 'in case' of loss to the holder hereof as his interest may then appear, and in case of his failure to comply with either of these provisions the holder hereof may, at his option, cause such taxes to be paid and insurance to be effected, and may thereon add the amount so paid by him to the sum next falling due and shall have the above rate of interest- thereon from the time of payment until repaid. It is provided that if said mortgagor shall fail to pay the installment^ of principal and interest as they fall due or neglect or refuse to pay the taxes or effect the insurance as above provided for for more than thirty days, then the holder hereof may, at his option, without giving notice, consider the principal and interest, and the amount paid by him for taxes, and insurance on said premises, due and payable, and. may, without delay, proceed to foreclose this mortgage.
The defendant had procured a policy of insurance for $2,800 on buildings from the Prairie Farmers’ Mutual Insurance Company in 1903, conditioned that, if the subject of insurance be or become incumbered unless
In that case it was also held that, after the indebtedness had fully matured, any subsequent tender of the interest will not defeat the action. Here the parties had expressly agreed that the mortgagee might, at her option, upon the neglect to effect the insurance as provided, consider the principal and interest due, and might without delay begin proceedings to foreclose the mortgage, and we know of no reason why such a stipulation should not be enforced. In 1 Jones on Mortgages, section 78, it is said that the condition of the' mortgage that the mortgagee shall keep the buildings upon the mortgaged premises insured against fire in a certain sum for the benefit of the mortgagee is a usual condition of a mortgage, and that the breach of such condition is “as effectual in giving the mortgagee a right to enforce his mortgage as is a breach of the condition to pay an installment of interest or principal or the whole debt.” To the same effect, see Walker v. Cockey, 38 Md. 75.
The decree will be modified in the respects found to be erroneous, and, as so modified, is affirmed.