48 Minn. 9 | Minn. | 1892
By the terms of the mortgage it. was agreed that the buildings upon the premises should be kept insured for the benefit of the mortgagee, and this agreement was complied with; the policy issued by plaintiff insurance company containing the usual clause in such cases, that the amount of the loss, if any, should be paid to the mortgagee to the extent of her interest. It was also stipulated that, unless written consent was indorsed upon the policy, it should become void upon a sale, transfer, or conveyance of the property by the insured mortgagor. There were further stipulations and conditions in the policy which, as part of the contract of insurance, must be given full force and effect, unless we are to make a new contract for the insurer and insured. These were that, as to the interest of the mortgagee in the policy, it should not be invalidated by any act of the mortgagor or owner of the property; and also that should the company, claiming that as to the mortgagor or owner all liability had ceased to exist, pay to the mortgagee any sum for loss under the policy, it should, to the extent of the payment, but subordinate to any claim of the mortgagee for an unpaid balance, be subrogated to the rights of the latter under any or all securities held by her for the payment of the debt. Or, a most important provision in this case, the company might, at its option, pay to the mortgagee the whole amount of the debt, and receive a transfer and assignment thereof, together with all securities held by her for its payment. These provisions and conditions of the contract do not seem ambiguous. As to the mortgagor, and as to his grantee, the company owed no duty or obligation upon the sale and conveyance of the premises by the
Judgment affirmed.
(Opinion published 50 N. W. Rep. 922.)