after stating the case, delivered the opinion of the court.
These first mortgage bonds matured January 1, 1920, and there was no provision in them nor in the mortgage that they should become due or could be declared due before that date; nor were there any allegations in the bill upon which to predicate a finding or decree to that effect.
The mortgage provided that in case of entry by the trustee for nonpayment of interest, or of principal at maturity, the income and revenue should .be applied to the payment of such. interest and the residue to the payment of the principal; and that, if the property went to sale, the net proceeds should be applied “to the ratable payment of principal and the then accrued interest of all the said bonds, whether -the principal be then due or not; ” but if, in case of entry or of proceedings to sell for default in payment of interest before the boners should become due, and before the sale should be made, the interest in arrears should be paid and satisfied, together -with all costs*,expenses, etc., that then the proceedings should be discontinued and possession of the mortgaged premises restored as if default or entry had not occurred. While, therefore, the intention is clear that the bonds were not to become due before the specified date of maturity, the proceeds of sale, after the satisfaction of the accrued amount, were properly applied upon the
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outstanding liability.
Chicago & Vincennes Railroad Co.
v. Fosdick,
Neither in the pleadings nor in the reports of the special master, nor in any part of the record, can we discover the basis for the statement: “ The court therefore finds that there is due from said defendant, The Ohio Central Eailroad Company, to the complainant as trustee'for the holders of said bonds secured by said first, main line mortgage, upon each of said bonds, the sum of eight hundred and two and sixty-eight and one-third one-hundredths dollars ($802.68^).” Certainly, as $197.31f had been realized on each bond, $802.68£ remained to be paid, but only according to the tenor of the bond.
There are no allegations in the bill as to when the income bonds matured, nor is a copy of the second mortgage given.
The deficiency decree says that “the court-further finds that no fund has come under the control of this court from which any payment can be made upon the three thousand main line income bonds in the bill of complaint set forth, and that no payments of any kind have been made upon any of said income bonds. Wherefore the court finds that there is due from the defendant, The Ohio Central Eailroad Company, to the complainant, as trustees of the holders of said income bonds, upon each of' said bonds, the sum of one thousand ($1000) dollars.”
But the conclusion does not follow that because no payment had been made on the income bonds, therefore they had matured; and unless they had matured by lapse of time, or otherwise as provided, the amount could not be decreed to be due.
The bill was taken as confessed, but that fact did not in itself justify giving complainant more than it claimed. In
Thomson
v.
Wooster,
Under the 18th rule in equity, where the bill is taken pro oonfesso, the cause is proceeded in ex parte, “ and the matter of the bill may be decreed by the court;” and hence if a decree be passed not confined to the matter of the.bill,, it may be attacked on appeal for that reason.
By the 92d rule it is provided that in suits in equity for the foreclosure of-mortgages, “a decree may be rendered for any balance that may be found due to the complainant over and above the proceeds of the sale-or sales.” Assuming that a deficiency decree might be rendered in the absence: of a specific prayer for that relief, nevertheless the case made by the bill ixiqst show that the amount is dfre, for otherwise it cannot properly be found so. This rule does not authorize the Circuit Courts to find a balance due because partial extinguishment baS -been effected by a sale, if, as matter of fact, the indebtedness is not then payable.
The bill here did not seek relief as to the second mortgage, which is only referred to as a subordinate lien, nor did it claim that anything except interest was due upon the first mortgage. It sought the establishment and enforcement of the first mortgage lien and the foreclosure of the equity of redemption. The amount realized paid the outstanding interest and a part of the principal. Under such circumstances, and upon these pleadings, this deficiency decree, which is a judgment for the recovery of so much money, with execution, was im-providently entered.
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Without discussing the extent of the franchises authorized to be sold under the mortgage, we are of opinion that this appeal was properly taken in the name of the defendant company.
Willamette Manufacturing Company
v.
Bank of British
Columbia,
The deficiency decree of June 1887, is reversed at appellee?s costs, and the cause rememded* with directions to proceed therein as may be just and equitable.
