O'CONNOR
O'Connor v. Richmond Savings & Loan Ass'n
Opinion
Opinion
Agee, J.
On September 17, 1959 building contractor Albert R. Muth and Sons borrowed a total of $176,450 from Richmond Savings and Loan Association. The loan was evidenced by 17 promissory notes, ranging in amounts from $9,750 to $10,900, and each note was secured by a separate deed of trust on one of 17 adjoining lots on 5th Street, in Vallejo. Single family dwellings were to he built by Muth on each óf the lots, as provided in-17 separate “Building Loan Agreements],” executed contemporaneously with the notes and deeds of trust. .
Clause 5 of each deed of trust provided that, if the trustor (Muth) should fail to perform the acts provided for therein, the beneficiary (lender) could “do the same in such manner and to such extent” as it “may deem necessary to protect the security,” i.e., the property subject to the loan.
In exercising this power, the beneficiary was expressly authorized to “enter upon said property for such purposes” and “pay necessary expenses, employ counsel and pay his reasonable fees.” (Italics added.)
Clause 7 requires the trustor “To pay immp.ffiatp.1y upon demand all sums expended under the terms of this Deed of Trust by Beneficiary. ...”