Page:Federal Reporter, 1st Series, Volume 4.djvu/281

 CONNEGTICUT HTIT. LIFB mS. CO. V. SCAMUOK. S67 �jointly with others, to any such insurance company, for the purpose of facilitating the collection by Scammon of any insurance money intended to be placed back on the mortgaged premises, should not be eonstrued as a collection of the money by complainant under the conditions of the mortgage, wherein it was provided that complainant might coUect and apply such insurance money upon the indebtedness secured to be paid thereby, but should be regarded as merely enabling Scammon to coUect such insurance money; and it was ex- pressly provided that this money was not to be so applied, and that the mortgage should remain a lien on the premises for the fuU amount of the principal sum mentioned in the bond, with ' interest, as if said insurance money had never been collected. It was also agreed that in case the insurance money should not be expended in rebuilding, within six months from the date of the agreement, then said agreement of waiver should have no eflPect, but that the right of Scam- mon to use and expend the same should thereupon cease, and that complainant should have the right to draw from the bank where the same was deposited, upon its own check, said insurance money, or so much thereof as had not then been actually expended, and apply the same in payment, pro tanto, of the indebtedness secured by the mortgage. �Thereupon complainant, by its secretary, by indorsement on the draft for $15,000 received from the fire insurance com- pany, made the same payable to J. Y. Scammon, or order, who designated the Marine Company of Chicago as the bank- ing office in which the insurance money should be deposited, and delivered the same back to Scammon so indorsed, and the proceeds of the draft were then received by Scammon and deposited with the Marine Company. Thereafter the money thus realized on account of the insurance, and so deposited, was drawn out by the defendant Scammon on his own checks or drafts, and not in pursuance of the aforesaid agreement between him and complainant ; but new structures were not ereeted on the mortgaged premises, and the proceeds of insurance were not used by Scammon for that purpose as contemplated by the agreement. Purther mate- ����