Manufacturers And Traders Trust Co. v. First National Bank

113 So.2d 869 (1959)

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Nature of the Case

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Facts

Schinstock borrowed $25,000 from National Bank (P) and executed an unsecured note. The note was renewed on three occasions and was in default on May 1, 1957. P sued on July 18, 1957. On August 20, 1957, they executed another renewal note with P secured by a second mortgage on their property. That new note was due and payable in 90 days. Manufacturers (D) obtained a judgment in federal court against Schinstock on August 20, 1957, and it was recorded on August 28, 1957. P’s mortgage was recorded on August 23, 1957. The issue before the court was whether P’s note and mortgage was supported by consideration. The lower court gave priority to P’s mortgage, and D appealed.