Hirsch v. Northwestern Mutual Life Insurance
Hirsch v. Northwestern Mutual Life Insurance
Opinion of the Court
None of the rulings announced in the head-notes will be enlarged upon, except the third and fourth.
The anomalous character of the deed to secure debt was commented upon in Shumate v. McLendon, 120 Ga. 396, 399-401 (48 S. E. 10). It was there observed that it seems to be peculiar to the law of this State, and that “its legal status has been fixed by judicial decisions considering alone the nature of the instrument, and, in many cases, paying little or no regard to analogies.” Contrary to the rule at common law, mortgages in this State pass no title. Code, § 67-101. Therein lies the chief distinction between a mortgage and a security deed. The one is a lien; the other passes title. Powell on Actions for Land, § 386; Williamson v. Orient Insurance Co., 100 Ga. 791 (28 S. E. 914), and cit.; Ashley v. Cook, 109 Ga. 653, 655 (supra), and cit. Apparently our first legislative enactment on the subject is the act approved December 12, 1871 (Acts 1871, pp. 44-45). That act, among other things, provided in effect that when any person conveys real property to secure any debt, such conveyance shall pass the title, “and shall be held by the courts of this State to be an absolute conveyance, with the right reserved by the vendor to have said property reconveyed to him upon the payment of the debt or debts intended to be secured, agreeable to the terms of the contract, and not a mortgage.” That act, however, made no provision for the creditor to sell the property in payment of his debt. The following year our lawmakers amended the act of December 12, 1871, by adding “that when any judgment shall be rendered in any of the courts of this State upon my note or other evidence of debt, which such conveyance of realty was made and intended to secure, it shall and may be lawful for the vendee to make and file and have recorded in the
In 1894 (Acts 1894, p. 100) was passed an act the title whereof was "An act to provide for the levy and sale of property where the defendant in fi. fa. has an interest therein but does not hold the legal title thereto, and to provide for the distribution of the proceeds arising from such sale; and for other purposes.” It made no reference to the act of 1871 or the act of 1872, supra. It is codified as section 67-1501; and instead of the language of the act of 1872, "when any judgment shall be rendered . . upon any note or other evidence of debt which such conveyance of realty was made and intended to secure,” the language of the Code is, "and the purchase-money or secured debt has been reduced to judgment,” with a further provision that after a sale "the proceeds shall be applied to the payment of such judgment.” The act of 1872, supra, in our opinion contemplated a judgment in personam; for it was to be a judgment “upon any note or other evidence of debt.” We are strengthened in this view by the proviso, "that said judgment shall take lien upon the land prior to any other judgment or incumbrance against the defendant.” (Italics ours.) Since that portion of the act of 1872 has never been expressly repealed, although omitted from the Code, we conclude that it would not be correct to hold that in codifying the act of 1894 (Code, § 67-1501) the words therein, “and the purchase-money or secured debt has been reduced to judgment,” means other than a judgment on the debt, i. e., a personal judgment against the defendant for the amount of the debt. The language is consistent with this view. Indeed this position is strengthened by a reference to the latter part of the section, to wit, "and thereupon the same may be levied upon and sold as other property of said defendant, and the proceeds shall be applied to the payment of such judgment.”
Judgment reversed.
Reference
- Full Case Name
- HIRSCH v. NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
- Status
- Published