First Nat. Bank of Quincy v. Guyton
| Decision Date | 06 July 1916 |
| Citation | 72 So. 460,72 Fla. 43 |
| Parties | FIRST NAT. BANK OF QUINCY et al. v. GUYTON et al. FORMAN et al. v. FIRST NAT. BANK OF QUINCY et al. |
| Court | Florida Supreme Court |
On Petition for Rehearing, August 9, 1916.
Appeal from Circuit Court, Jackson County; D. J. Jones, Judge.
Suit by the First National Bank of Quincy and others against Moses Guyton, Jr., and others, and a cross-bill by defendants George M. Forman and others against the First National Bank of Quincy and others. From a decree, complainants and cross-complaining respondents appeal. Reversed.
Syllabus by the Court
When a note secured by mortgage is transferred, the mortgage follows the note as an incident thereto, and the transferor of the note ordinarily has no more right or authority to release the mortgage than he has to cancel the note after the note is transferred.
Paul Carter, of Marianna, for appellants.
Wm. B Farley, of Marianna, for appellees.
Guyton gave three promissory notes to Carter personally and executed to Carter personally a mortgage to secure the payment of the note. Carter transferred one of the notes to each of three different banks, Carter being the president of each bank. Subsequently to the transfer of the notes, Carter personally released a portion of the mortgage in favor of second mortgagees of Guyton. The court gave priority to the second mortgagees over the holders of the notes transferred by Carter and the holders of the notes appealed.
When a note secured by mortgage is transferred, the mortgage follows the note as an incident thereto, and the transferor of the note ordinarily has no more right or authority to release the mortgage than he has to cancel the note after the note is transferred. See Scott v. Taylor, 63 Fla. 612, 58 So. 30; Taylor v. American National Bank of Pensacola Fla., 63 Fla. 631, 57 So. 678, Ann. Cas. 1914A, 309; Northrup v. Reese, 68 Fla. 451, 67 So. 136, L. R. A. 1915F, 554.
In securing or accepting a release of a portion of a prior mortgage in their favor the second mortgagees should ascertain the authority of the original prior mortgagee to make the release, since if the notes which the mortgage secured had passed to another, the mortgage rights had also passed as an incident to the debt, and an effective release of the mortgage could not be made by the original mortgagee. Carter had no authority to release the mortgage after he had transferred the notes, and his release does not affect...
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OneWest Bank, FSB v. Palmero
...It was unnecessary because Florida law has always held that the mortgage follows the note.") (citing First Nat'l Bank of Quincy v. Guyton, 72 Fla. 43, 44, 72 So. 460, 460 (1916) ; U.S. Bank, NA v. Glicken, 228 So.3d 1194, 1196 (Fla. 5th DCA 2017) ). "It is elementary, absent contrary contra......
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Forman v. First Nat. Bank
...Burgess mortgage and the two judgments. In holding thus the chancellor strictly followed this court in the two cases of First National Bank of Quincy v. Guyton, supra, Boley v. Daniel, 72 Fla. 121, 72 So. 644, L. R. A. 1917A, 734. In the case of Boley v. Daniel, supra, this court, consideri......
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Holmes v. Dunning
... ... follows the note. First National Bank of Quincy v. Guyton ... et al., 72 Fla. 43, ... ...
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HSBC Bank United States, Nat'l Ass'n v. Buset
...It was unnecessary because Florida law has always held that the mortgage follows the note. See, e.g., First Nat. Bank of Quincy v. Guyton, 72 Fla. 43, 72 So. 460, 460 (1916) (noting that "when a note secured by mortgage is transferred, the mortgage follows the note as an incident thereto");......