Citizens National Bank v. Williams

Citations

• 100 Kan. 140
• 163 P. 647
• 1917 Kan. LEXIS 282

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Mortgage — Mortgagee Trustee for Third Person — Mortgage Released by Mortgagee — Release Binds Cestui que Trust in Favor of Innocent Purchaser. Where a mortgage is executed by the owner of land to secure a note payable to the mortgagee, and also to secure a note to another person who is not named as a mortgagee, and the condition of the mortgage is stated to s be the payment to the mortgagee of the entire indebtedness secured, and the mortgagee is authorized to declare all the indebtedness due in case of a default, and to pay off any other incumbrances and add the amount to the mortgage lien, the instrument is to be construed as a mortgage to the mortgagee for his own benefit, and as a trustee for the other creditor, and a recorded release executed by such mortgagee, purporting to eifect a full discharge of the mortgage, will protect a buyer, who has bought the land in reliance thereon, against the claim of the other creditor, although his note has not in fact been paid to any one.</p>