Opinion ID: 1241225
Heading Depth: 1
Heading Rank: 4

Heading: right to accelerate the debt because of defaults

Text: The principal question we must consider is whether the trial court erred in ruling that there was no default on which a foreclosure could be based. Black's Law Dictionary, 5th Ed. 1979, defines default as an omission of what ought to be done; an omission or failure to perform a legal duty. Foothill contends that the following omissions existed and were defaults within the provisions of the loan agreement: [4] (1) failure to make the payment due September 1, 1979; (2) failure to make timely payment of 1979 taxes; (3) failure to keep the property insured to cover the entire mortgage amount; (4) failure to pay assessments against the property; and (5) failure to satisfy or secure the release of the two judgment liens against the property. The Mikkelsons do not appear to deny that they failed in some respects to do what was required of them under the agreement. Their position appears to be that such failures were either waived by the bank or were of such an unsubstantial nature, particularly in view of the existence of the pledge of the $10,000.00 certificate of deposit, that foreclosure of the mortgage was unjustified. The trial judge found that the 1979 taxes were not delinquent but implicitly found that the insurance was not for the proper amount, although that fact was known to the bank. He also found that the bank knew of the first judgment but made no mention of the second judgment. He made no special mention of the assessments except to order that they be paid. He also ordered the Mikkelsons to make the September payment, together with all late charges. It appears that he likewise must have considered the omissions unsubstantial although he referred only to the September payment, considering it de minimis because the bank held the $10,000.00 certificate of deposit as security which could have been used to cover the deficiency. We are not convinced that Foothill's contentions one, two and three are sustained by the evidence but believe that four and five are sustained and that defaults existed on December 6, 1979, justifying the institution of foreclosure proceedings.