140 Mich. 468 | Mich. | 1905
The defendants were engaged in the banking business at Colon, St. Joseph county, Mich., and had been so engaged for many years prior to the transaction here involved, and they resided there during all the years covered by the transactions between themselves and the complainant Marc W. Connor. They did business under the name of the Exchange Bank of Colon. Complainant Connor for many years resided in St. Joseph county, Mich, (from 1839 to 1887), and was for a time engaged in buying wheat for the defendants, and in closing up their wheat business Mr. Connor was found to be owing to de
“$2500.00. Los Angeles, California, Oct. 18,1889.
“ One year after date for value received, we promise to pay Edwin R. Hill and Thomas J. Hill, or order, at the Exchange Bank of Colon, Michigan, the sum of Twenty-five hundred dollars ($2,500.00) with interest at the rate of eight (8) per cent, per annum from date until paid, interest payable annually, and if not so paid, to be compounded annually and bear the same rate of interest as the principal, and should the interest not be paid annually, then the whole sum of principal and interest shall become immediately due and payable at the option of the holder ofQthis note. Should suit be commenced to enforce the payment of this note, we agree to pay an additional sum of one (1) per cent, on principal as attorney fees in such suit. Principal and interest payable in gold coin of the U. S.
“ Marc W. Connor.
“ Mary Annette Connor.”
After the institution of the proceedings for foreclosure' by advertisement, which were afterwards conceded to he invalid, the complainant Connor tendered the amount due on the note and mortgage, computing interest in accordance with the Michigan rule, which defendants refused to receive, insisting upon compound interest, under the California rule, and proceeded with said foreclosure, and on the 2d day of October, 1902, the premises were sold to the defendants E. R. and T. J. Hill, and a deed to them recorded with the register of deeds. Thereupon complainants filed their bill of complaint for an accounting as to the amount due, considering the tender, for the discharge of the mortgage, for the avoiding of the sheriff’s deed*
We think the holding of the trial court was clearly correct. No contract came into existence until the note and mortgage, transmitted by the California Bank, as the agent of complainant Connor, were received in Michigan and accepted in Michigan by the defendants. The contract was to be performed by the payment of the money at the defendants’ bank in Michigan. The performance of the contract was secured by a mortgage upon Michigan real estate. Part of the consideration of the note was the discharge as paid of a $500 Michigan note. And the books of the defendants showed that for two years and eleven months they computed the interest in accordance with the Michigan rule.
The decree is affirmed, with costs to complainants.