U.S. Supreme Judge
1. A stipulation in a Farm Loan home loan that, in case of suit to foreclose, the mortgagor shall pay an acceptable lawyer’s charge is solved because of the court, is actually appropriate in government Farm mortgage work if legitimate in county laws. P. 292 U. S. 54 .
2. The purpose of the Farm mortgage operate will be make it easy for farmers, by mortgaging their unique places, to get loans at low-cost, which purpose is to be observed in identifying what is a fair attorneys’s charge in a foreclosure proceeding. P. 292 U. S. 57 .
Certiorari, 290 U.S. 620, to review the affirmance of a decree foreclosing a farm financing mortgage where the trial legal had refused to enforce a stipulation for an attorney’s charge.
U.S. Great Courtroom
Federal Land-bank of Berkeley v. Warner
CERTIORARI TOWARDS GREAT JUDGE OF ARIZONA
1. A stipulation in a Farm Loan home loan that, in the eventuality of suit to foreclose, the mortgagor shall pay an acceptable attorney’s charge is solved by courtroom, are good within the government Farm mortgage operate if appropriate underneath the county legislation. P. 292 U. S. 54 .
2. the intention of the Farm mortgage work is enable producers, by mortgaging their unique places, to acquire financial loans at low priced, and this objective is usually to be seen in determining what exactly is a fair attorney’s charge in a foreclosure proceeding. P. 292 U. S. 57 .
Certiorari, 290 U.S. 620, to review the affirmance of a decree foreclosing a farm financing home loan when the demo courtroom got would not apply a stipulation for a legal professional’s charge.
MR. FAIRNESS BUTLER delivered the opinion of this judge.
Respondents gave petitioner home financing to their farm places in Arizona to protected a loan of $7,200 built in conformity aided by the Farm financing work. [Footnote 1] The home loan provides that, if there is fit to foreclose, the mortgagors shall pay a reasonable attorney’s charge to be set because of the court. And this clause are appropriate under Arizona law. [Footnote 2] The borrowers having did not pay per their particular guarantee, petitioner produced this fit to foreclose the home loan and prayed that a legal professional’s charge of $125 be within the judgment. Participants objected towards allowance of every quantity due to that items, the test legal suffered her assertion, while the great court kept that the main decree upon the bottom that number of this type of a fee was forbidden from the appropriate section of § 31: try the website “No land-bank . . . shall cost or receive any cost, fee, extra, present, or other factor perhaps not here especially authorized.” 12 U.S.C. § 983.
That development are not sustained. The work creates assistance between borrowers on farm mortgages and traders from inside the ties protected by them. The necessity, in the shape of the financial supply, that a mortgagor shall bear the expense put-upon the financial institution by his default try reasonable, as well as in balance with that idea.
Inside absence of an ordinary expression compared to that results, it might not feel used that Congress intended to put upon nondefaulting individuals any an element of the expense of foreclosure of mortgage loans made by other people. The operate cannot recommend process for foreclosure, but indicates that state regulations are to regulate. Point 30 directs the land-bank administrator to examine the rules of each county in order to document, on top of other things, whether, in his opinion, these are typically including to safeguard against loss in circumstances of standard. 12 U.S.Code, § 971. It provides that, if evaluation shall demonstrate that the laws and regulations of any you should never afford sufficient shelter, the Farm credit score rating management may declare mortgage loans on land because State ineligible. Code, § 972. And also the petition with this writ indicates that, except in some reports where neighborhood laws prohibits these types of deals, most of the mortgage loans used by the government Land Financial institutions contain conditions for attorney’s charge for foreclosures. [Footnote 3] with this it seems that officers billed by law utilizing the government regarding the banking companies have always construed the work to permit county laws to control. Our very own attention has not been also known as to almost any instance for which that building has become interrogate. Truly eligible for big body weight. United states of america v. Mo. Pac. R. Co., 278 U. S. 269 , 278 U. S. 280 .