McKean

This was an action brought by plaintiff against defendant to recover judgment for four hundred dollars alleged to have been deposited with the defendant by John Sehwickert as a general and ordinary deposit, payable on demand to said Sehwickert or assigns. The complaint averred an assignment by Sehwickert to plaintiff. For answer defendant showed that at the time of the deposit Sehwickert was indebted to it upon certain promissory notes secured by mortgage; that under the terms of the notes they were due, and that defendant had applied the money in reduction of Schwickerffs indebtedness before the assignment by Sehwickert to plaintiff, and before any demand by plaintiff had been made upon it. Judgment passed for plaintiff, and defendant appealed.

The question thus presented is that of the right of the holder of a debt secured by mortgage to apply in reduction or cancellation of the debt a claim due by the holder to the debtor; and the determination of this question necessarily involves a considera *335 tion of tbe scope and meaning of section 736 of tbe Code of Civil Procedure, wbicb declares that “there shall be but one action for the recovery of any debt, or the enforcement of…