Toole-Tietzen & Co. v. Colorado River Development Co.

Plaintiff is the holder, by assignment, of a mortgage given by defendant Colorado River Development Company to secure payment of two promissory notes, each in the sum of $37,500, dated December 30, 1927, payable three years after date, with interest at six per cent, per annum, payable semiannually. There was also a chattel mortgage covering personal property situated on the land mortgaged, given as additional security for the same debt. The property involved is ranch land, consisting of approximately 22,-000 acres, located in the county of Riverside, Cal. The mortgage first referred to contained the provision that upon default in the payment of any interest due, the total debt should, at the option of the holder» of the mortgage, become immediately due and payable. In December, 1929, default was made in the payment of interest amounting to $2,-250. Plaintiff seasonably gave notice of its election to declare the whole debt due and payable, and thereafter, on February 1,1930, filed this action to secure foreclosure of its mortgages, and at the same time prayed for the appointment of a receiver.

It was made to appear at the time plaintiff presented its application in the latter…