Middlekauff v. Bell

Citations

• 111 Kan. 206
• 207 P. 184
• 1922 Kan. LEXIS 205

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Note and Mortgage — Note Indorsed — Mortgage Assigned — Assignment Not Recorded — Second Mortgage Executed — Priority of Liens. In October, 1910, a mortgagor gave a real-estate mortgage to secure a negotiable promissory note for $2,000, due in six months, and the mortgage was duly recorded. In November, 1911, the note was indorsed and delivered, and the mortgage was assigned by written assignment, duly acknowledged, to the plaintiff. In 1914, the mortgagor offered the land to an investment company as security for a loan. An abstract of title disclosed the mortgage of 1910. The investment company inquired of the mortgagee, and was told the debt had been paid and a release would be executed. No release was executed, and the investment company closed the loan, taking as security a mortgage for $4,300. In an action to foreclose the plaintiff’s mortgage, the investment company was awarded a first lien. Held, the judgment was erroneous.</p>