Kresos v. White
In Kresos v. White, 47 Ariz. 175, 54 P.2d 800 (1936), defaulted mortgagors appealed from a deficiency judgment entered against them after a foreclosure, arguing that a law enacted after the mortgage was executed precluded the deficiency judgment. 47 Ariz. at 176-77, 54 P.2d at 801.
The court found that the rights of the parties vested at the time the contract was made and that the law precluding the deficiency judgment impaired the contract.
The court reasoned that the mortgagee had paid the funds when the mortgage was executed and so the rights and obligations arose at that time. Id. at 178-79, 54 P.2d at 802.
The rights involved were the mortgagee's right to be repaid and the mortgagors' obligation to repay the debt. The subsequently enacted statute impaired the contract because it alleviated the mortgagors' obligation on the contract to repay the debt. Id. at 179, 54 P.2d at 802.