19 A.2d 137 | Pa. | 1941
On the distribution of the proceeds of the judicial sale of mortgaged property, the first and second mortgagees differed as to the date to which the appellant first mortgagee should receive interest, the fund not being sufficient to pay both creditors in full. The mortgaged *82
property had been sold, clear of liens, in a receivership proceeding, by an order of November 10, 1934, approving an agreement of sale for a sum payable in installments beginning March, 1935, with interest at 6%. The final payment was made September 1, 1936. When the receiver's account came in, a question was whether, as the first mortgagee contended, both mortgages covered the same property or whether, as the second mortgagee contended, its mortgage covered property in addition to that described in the first mortgage. The decision on that point was reviewed in an opinion reported in
The learned court below referred to the rule in cases of sheriff's sales, that interest on liens discharged thereby ceases on the day of sale: Bachdell's Appeal,
The argument of appellant, first mortgagee, recognizes that the rule in the classes of sales referred to above is as the learned court understood it to be, but contends that the holder of a mortgage lien is in a different class from the judgment or other creditors mentioned, and should have the benefit of a different rule. It rests this contention on the proposition that the interest on the mortgage is owing by contract. InWatson v. McManus,
The order of distribution is affirmed.