Buchanan v. International Bank

Citations

• 78 Ill. 500

Syllabus

<p>1. Recording laws—as notice of incumbrance. Although a party purchasing notes secured by deed of trust upon real estate has no actual notice of a prior incumbrance, yet if it is upon the record-at that time, and at the time the deed of trust was executed, he will be bound to take notice of such prior incumbrance, and its legal effect, and whatever rights he acquires by sale under his deed of trust, will be subject thereto.</p> <p>2. Deed oe trust—effect of a conveyance of the equity of redemption to party secured, after he parts with the notes. If a party, giving a deed of trust to secure the payment of notes to another, after the latter has parted with the notes for a valuable consideration, conveys the premises to the original holder of the notes, it will be subject to the trust deed, and all persons claiming under the latter will occupy no better position.</p> <p>3. Collateral security—when held for other indebtedness than that for which it is specially pledged. If a party executes an agreement to secure past and future loans, by which all collaterals given and thereafter to be given to secure the payment of specific notes for money loaned to him, are to apply generally to all notes held at any time by the party loaning, notes afterwards pledged for a special loan will not only be a security for the particular loan then made, but for the payment of all notes held by the lender, regardless of the manner in which they are secured, or their date.</p> <p>4. In such a case, so far as future advances are made, the contract is in the nature of a mortgage, and will be binding between the parties for any and all advances made prior to the time of third parties acquiring an interest in the collaterals pledged.</p> <p>5. Consideration—generally. Any act which is beneficial to one party, or a disadvantage to the other, is a sufficient consideration to support a contract.</p> <p>6. Security—pa/rty may rely upon several, and enforce either. A party loaning money under a gen