Page:North Dakota Reports (vol. 3).pdf/202

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162
NORTH DAKOTA REPORTS.

and under the allegations the lien of the mortgage was entirely destroyed when tender of the last payment was made. Immediately upon the refusal thereof,—which was well known to respondent,—she might have brought her action in equity against appellant, and compelled a satisfaction of the mortgage of record. This right she failed to exercise. The subsequent sale under the foreclosure was made to the mortgagee, who, if such were the fact, had full knowledge that the lien of the mortgage had been extinguished by tender of the full amount due thereon, and that the power of sale contained therein was no longer operative. Under these circumstances, nothing passed to the mortgagee by virtue of such sale. A sheriff's deed to appellant, based upon such sale, would be of no effect to divest respondent's title. She was in possession, and no action by appellant could disturb that possession. Further, she had actual knowledge of the foreclosure proceedings three months before the time for redemption expired. The appellant continued to hold the certificate until the expiration of the redemption period, and was, according to the com- plaint, “about to apply for a sheriff's deed of said premises, by virtue of said pretended foreclosure and sale.” At any time during the three months that she had knowledge of the sale, and prior to the expiration of the time for redemption, an application to the proper court would have resulted in a perpetual injunction against the execution of the deed. After the execution of the deed, she might have maintained an action to remove the apparent cloud created thereby. There is no allegation that appellant was threatening or intending to transfer the certificate or convey the land after receiving the deed. Without intimating whether or not it would have been in the power of appellant to prejudice respondent's rights by any such transfer to a bona fide purchaser, it is sufficient to say that in either case the filing of a lis pendens would have afforded her complete protection. The same testimony that would establish, in the case at bar, that the money sought to be recovered was paid upon an unjust claim, would have enabled respondent to succeed in cither of the actions above