H. O. Maraman to Mercantile Trust - Loan Mortgage

This agreement between Heny O. Maraman and Henry J. Barns of Mt. Washington involved their joint venture into developing and improving the water power of Salt River along the stretch of the river bordering Shepherdsville that Maraman had purchased from Wilhite Carpenter. Maraman then mortgaged his two farms to the Mercantile Trust Company of the City of New York to obtain a $5000 loan to complete the work on his mill dam, as shown below. To increase his investment, Maraman consolidated his various debts into one mortgage to R. J. Meyler. Maraman was unable to meet his obligations, and the property mortgaged to the Trust Company was foreclosed, with the company receiving it through their trustee.

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Bullitt County Deed Book U, Pages 402-408

This indenture made this second day of August, A.D. 1875 between Henry O. Maraman and Elmira E. Maraman his wife of the first part, Louis Fitzgerald, Trustee of the second part, and the Mercantile Trust Company of the City of New York, a corporation organized under the laws of the State of New York, of the third part.

Witnesseth that whereas the said Henry O. Maraman is justly indebted to the said party of the third part in the principal sum of $5000 lawful money of the United States of America this day loaned the said Henry O. Maraman by the said Mercantile Trust Company, evidenced by five certain coupon mortgage bonds numbered from 977 to 981 inclusive, each for the principal sum of $1000, all bearing even date herewith, and payable five years after the date thereof, with interest thereon at the rate of 7% per annum to the said Mercantile Trust Company or bearer as if the same be registered then to the registered holder thereof, at the office of the said Mercantile Trust Company in the city of New York, State of New York, the said interest to be paid semi-annually on the first day of February and the first day of August in each year until said principal sum matures, and both principal and interest to bear 10% interest per annum after maturity.

The said semi-annual installments of interest are further evidenced by 50 interest coupons, 10 coupons being attached to each of said $1000 bonds, each of said coupons attached to the $1000 bonds being for the sum of $35, all bearing even date with the bond to which it is attached, payable to the said Mercantile Trust Company or bearer or registered holder thereof at the office of said company as follows, viz: five of them on the first day of February and five of them on the first day of August in each year until the said bonds mature; said coupons to bear interest at the rate of 10% per annum after default and the payment thereof according to the terms thereof.

In the said bonds it is stipulated and agreed that if default be made in the payment of any of said installments of interest and such default shall continue three days, then at the election of the legal holder of said bonds or of any of them the principle of said bonds shall at once become due and payable, anything therein contained to the contrary not withstanding, said election to be made at any time after the expiration of three days without notice.

And whereas the said five bonds for the said sum of $5000 were executed by the said Henry O. Maraman to secure a loan of that amount this day made by the said third-party to the said Henry O. Maraman, upon which said amount the said Henry O. Marman has agreed to pay interest at the rate of 10% per annum, of which said interest 7% for the term of five years from the first day of August 1875 is secured to be paid by the said coupons as heretofore set fourth, and 3% thereof for the said term of five years from the said first day of August 1875 has been discounted, and the same less the discount thereon paid at the time of the execution of these presents, and the entire interest on the said principal sum of $4421.00 up to the 23rd day of August 1875 this day adjusted and paid.

Now therefore in consideration of the premises and for the better securing the prompt payment of said bonds and of said several coupons and the interest of thereon as therein specified according to the tenor and effect and the true intent and meaning thereof, and for the purpose also of securing the faithful performance of the covenants, agreements, and stipulations hereinafter contained, and in further consideration of one dollar by the said second party paid, the receipt whereof is hereby acknowledged, the said Henry O. Maraman and Elmira E. Maraman his wife have and do by these presents grant, bargain, sell and convey unto the said Louis Fitzgerald, trustee, party of the second part, the following described real estate, lying and being in the city of __, county of Bullitt and state of Kentucky, and all the right, title, interest and claim which the said Henry O. Maraman and Elmira E. Maraman his wife have in and to the same and every part thereof known designated and described as follows, to wit.

A certain tract or parcel of land bound as as follows: beginning at two willows on the bank of Salt River upper corner to J. B. English, thence up Salt River with its meanders 122 poles to a stake corner to Robert Simmons' heirs, thence South 22° East 150 poles to the Bardstown Road and same course in all 330 poles to gum and red oak, thence South 71° West 48 poles to a beech, South 18° East 124 poles to a white oak stump with a walnut in it, thence South 19 1/2° East 160 poles with an old burned fence to a white oak blazed, thence, with another burned fence South 78 1/2° West 27 poles to three chestnut oaks, N. Crigler's old corner, thence with said line of Crigler's South 55° West about 106 poles to three pines in Bowman's line of 1000 acres, thence with said line North 64° West 98 poles to a stake in the Elizabethtown Road corner to the Curd tract, thence with the road and Curd's line to a stake in the road, thence with Bright's line North 51 1/2° East 80 poles to Bright's corner, chestnut oak and red oak, thence with another line North 48° West 29 poles to a white oak, thence North 15 1/4 poles to a pile stone between a hickory and black oak stumps corner to Hatzell, thence with his line North 70° East 100 poles to a stake about 10 feet Eastwardly from an elm, thence North 1° East 65 2/3 poles to a maple and red oak, thence North 76 1/2° West 56 poles to a stake in Honey's line, thence with the same North 13° East 15 1/4° poles to a stake corner to Hatzell and W. Carpenter, thence with Carpenter's line North 6° East 36 3/4 poles to a stake, North 64 1/2° West 61 1/2 poles to a cedar post, thence North 25 1/2° East 38 1/2 poles to a cedar post on the South side of the Bardstown Road, Carpenter's corner, thence North 89 1/4° West 32 1/5 poles to a stake on the North side of said road corner to James B. English, thence with his line North 7° West 96 poles to the beginning, containing 569 acres.

Also 106 1/4 acres on Salt River in Bullitt County, Kentucky, being the same purchased at chancery sale under judgment of the Bullitt Circuit Court in the name of Francis Maraman's administrators vs his heirs and creditors, and conveyed to H. O. Maraman by Wesley Phelps, special commissioner, and bounded as follows.

Beginning at a stake on the bank of Salt River, being North 88° West 10 poles from an elm on the bank of Salt River, being the beginning corner to Frank Maraman's 738 acres allotted to him in the first Maraman division, thence with the line of land dated by said F. Maraman to Wilhite Carpenter for 35 1/2 acres South 38 1/2° West 160 poles to a stone, a corner to 112 1/2 acres deed by said Maraman to James Moore, thence with said line South 61° West 129/4 poles to a stake near a forked red oak, formerly a corner to Frank Maraman's (dec'd) children, also a corner to Martha A. Maraman's dower as shown on Will Book F, page 322, thence with said dower line North 5° East 168 poles to a forked elm on the bank of Salt River, thence up the river with its meanders 7 feet above low water mark to the beginning.

To have to hold the above described premises with all the appurtenances thereunto belonging to the said Louis Fitzgerald, trustee, party of the second part, or his successor in trust, forever with covenant of general warranty.

In trust nevertheless and for the uses and purposes hereinafter set forth, the said parties of the first part for themselves, their heirs, executors and administrators and assigns, hereby covenant and agree to and with the said party of the second part and his successor in trust that they will and truly pay or caused to be paid the said principle sum of money with the interest thereon mentioned in said bonds and coupons according to the tenor and effect thereof, and will keep and perform all the conditions, stipulations and agreements therein contained; that they will keep any building, out-houses excepted, situate or which may be hereafter erected upon said premises, insured in some good and responsible fire insurance company against loss or damage by fire and at least the sum of $1500; and will cause the policy or policies of insurance thereon to be properly assigned or made payable to the said second party or his successors in trust, and will deliver said policies and all receipts for the renewal premiums thereon to Messrs Roe & Lyon, agents for the said party of the second part (the selection of the insurance company to be made by said party of the second part or his successors in trust if he's so elects). And further that if default be made in the payment of any of said coupons and such default shall continue three days, or if said real estate shall be sold or offered for sale for any tax lien, assessment or debt of any kind, or if the said parties of the first part shall fail to keep said buildings insured against loss or damage by fire to the extent or in the manner heretofore provided, then in either of said events, the principal sum of said bonds from thenceforth shall at the election of said party of the second part or his successor in office or the holder or holders of said bonds at once be and become due and payable together with all arrearages of interest thereon. And further that if default be made in the payment of any tax lien or assessment, or in keeping in force the policies of insurance upon the said premises then the said party of the second part or his successor in trust may at his or their option pay or cause to be paid such tax, lien or assessment, or cause said fire insurance to be affected upon the said premises so that the less if any shall be payable thereunder to the said second party or his successor in trust, and the money so paid together with interest thereon at the rate of 10% per annum shall be a lien upon the said property, and secured by this instrument, though the same shall be collectable without subjecting said premises to the satisfaction thereof, and that if legal proceedings are resorted to for the collection of the principal or interest of said bonds or of any of them or of any part of thereof or of any claim secured to be paid by these presents, the party so bringing suit shall recover in addition to ordinary costs a reasonable attorney's fee, the amount thereof to be determined by the court and the same shall be secured by this instrument.

And further the said Henry O. Maraman and Elmira E. Maraman his wife, parties of the first part, for the consideration above named hereby expressly waive and release jointly and separately for themselves, their heirs and assigns, all and every right and benefit as well in law as in equity to which they or any of them may be entitled in and to the premises aforesaid, by virtue of any and all homestead and exemption laws, or any laws now in force or which may hereafter be enacted, having as their object the exemption of property, real or personal, from execution; this grant to include any potential right of dower which any party hereto may have in said premises.

And the said Henry O. Maraman and Elmira E. Maraman his wife for themselves, their heirs and assigns, do hereby covenant, bargain and agree to and with the said party of the second part and his successors in trust that Henry O. Maraman [is] well seized of the premises above described, as of a good, perfect and indefensible state of inheritance in fee simple, and that the same are free and clear from all other and former grants, mortgages, liens, assessments, and encumbrances of any nature or description, and that if there exist any such grant, claim, lien, or encumbrance that is prior or superior to this deed, then the said principal sum of $5000 and all arrearages of interest thereon shall at the election of the said second party or his successor's interest become due and payable and may be collected at any time after 10 days notice.

And further that if the said party of the second part shall at any time become unable or refuse to exercise the trust herein created, that the said party of the third part may select and appoint his successor or without consultation without notice to the said first parties, prior to making such appointment. A reconveyance of said premises shall be made by the said party of the second part or his successor in trust to the said Henry O. Maraman, his heirs or assigns at the expense of said first parties on full payment of the indebtedness aforesaid at the time and place when and where the same shall become due and payable, and the full and exact performance of all the covenants agreements and stipulations made herein by the said parties of the first part.

In testimony whereof the said Henry O. Maraman and Elmira E. Maraman his wife have hereunto set their hands and seals this 2nd day of August 1875. (signed) Henry O. Maraman, Elmira E. Maraman

State of Kentucky, Bullitt County, Sct. I E. W. Hall, Clerk of the Bullitt County Court, certify that on the 25th day of August 1875 the foregoing deed was produced to me in my office and acknowledged and delivered by Henry O. Maraman and Elmira E. Maraman his wife, parties thereto, to be their act and deed, and on the same day at 11:00 AM was lodged in my office and ordered to be recorded. Whereupon I have duly recorded the same together with the certificate in my office. Given under my hand this 26 day of August 1875. E. W. Hall, Clerk.

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