U.S. Supreme Court
Richards v. Holmes, 59 U.S. 18 How. 143 143 (1855)
Richards v. Holmes
59 U.S. (18 How.) 143
Where there was a deed of trust to secure the payment of a note which had two years to run, and the trustee was empowered to sell in case any default should be made in payment of any part of the debt and interest, the trustee could sell the property if the interest for the first year was not paid when due.
It was not necessary that the trust deed should describe the interest as being annual. The trustee had power to adjourn the sale from time to time, if duly advertised, and it should seem to him necessary in order to secure a fair price.
The creditor for whose benefit the sale was made had a right to request the auctioneer to make a bid for him, if fairly used.
Assignors who did not endorse the note, but assigned it by deed and covenanted that it should be first paid out of the proceeds of sale of the property conveyed in the deed of trust, cannot be held personally responsible.
The covenant in the assignment was only that the note assigned should have a preference.
The case is stated in the opinion of the court. chanroblesvirtualawlibrary