23 Nov Federal land-bank of Berkeley v. Warner, 292 U.S. 53 (1934). Government Land-bank of Berkeley v. Warner
U.S. Great Legal
1. A stipulation in a Farm financing financial that, in the eventuality of match to foreclose, the mortgagor shall spend a fair lawyer’s charge to be set because of the legal, was appropriate according to the Federal Farm mortgage operate if valid in county legislation. P. 292 U. S. 54 .
2. the goal of the Farm Loan operate is always to allow farmers, by mortgaging their lands, to get financing at low-cost, and that objective is going to be observed in determining something an acceptable attorneys’s cost in a property foreclosure proceeding. P. 292 U. S. 57 .
Certiorari, 290 U.S. 620, to examine the affirmance of a decree foreclosing a farm loan home loan where trial judge had refused to enforce a stipulation for legal counsel’s cost.
U.S. Supreme Judge
Federal Land-bank of Berkeley v. Warner
CERTIORARI TOWARDS SUPREME JUDGE OF ARIZONA
1. A stipulation in a Farm Loan Mortgage that, if there is fit to foreclose, the mortgagor shall shell out a reasonable lawyer’s fee as fixed because of the legal, try good in government Farm Loan operate if legitimate within the county legislation. P. 292 U. S. 54 .
2. The purpose of the Farm financing work should equip farmers, by mortgaging their countries, to get financing at low-cost, and this function is usually to be noticed in identifying what exactly is an acceptable lawyer’s fee in a foreclosures proceeding. P. 292 U. S. 57 .
Certiorari, 290 U.S. 620, to review the affirmance of a decree foreclosing a farm loan mortgage where the demo courtroom have refused to impose a stipulation for an attorney’s charge.
MR. FAIRNESS BUTLER delivered the opinion associated with the courtroom.
Participants gave petitioner a mortgage to their farm places in Arizona to protected that loan of $7,200 made in accordance utilizing the Farm Loan operate. [Footnote 1] The mortgage supplies that, in case of fit to foreclose, the mortgagors shall spend a fair attorney’s charge to be repaired of the judge. And that condition was legitimate under Arizona law. [Footnote 2] The borrowers having did not spend based on their own promise, petitioner delivered this suit to foreclose the financial and prayed that legal counsel’s fee of $125 be included in the wisdom. Respondents objected towards allowance of any amount due to that items, the test court sustained their assertion, plus the supreme courtroom upheld that a portion of the decree upon the bottom that assortment of this type of a fee is actually forbidden because of the following section of § 31: “No land bank . . . shall recharge or receive any cost, fee, incentive, gifts, and other factor not here especially licensed.” 12 U.S.C. § 983.
That building are not sustained. The operate determines collaboration between individuals on farm mortgages and dealers when you look at the ties protected by them. The necessity, through the home loan provision, that a mortgagor shall bear the trouble put upon the financial institution by their default was sensible, and also in harmony thereupon concept.
In absence of an ordinary appearance to this result, it might not be used that Congress designed to put-upon nondefaulting borrowers any an element of the expense of property foreclosure of mortgage loans made by other people. The work will not recommend legal proceeding for foreclosure, but indicates that county laws are to regulate. Area 30 guides the land-bank administrator to examine the rules of each county also to report, among other things, whether, in his thoughts, these are generally such as for example to safeguard against loss in circumstances of standard. 12 U.S.Code, § 971. It gives you that, if exam shall demonstrate that the legislation of any try not to afford sufficient security, the Farm Credit government may declare mortgages on secure for the reason that county ineligible. Rule, § 972. Additionally the petition for this writ suggests that, except in some States where regional legislation prohibits such contracts, all mortgage loans used of the government secure Banking institutions include stipulations for lawyer’s costs for foreclosures. [Footnote 3] with this it would appear that officials energized by-law making use of government for the finance companies have always construed the operate to permit state legislation to control. All of our focus hasn’t been known as to virtually any instance whereby that building is asked. It is qualified for big pounds. Us v. Mo. Pac. R. Co., 278 U. S. 269 , 278 U. S. 280 .