Bank of Prattville v. Colonial Bank

HOUSTON, Justice.

Colonial Bank sought a declaratory judgment against Bank of Prattville to obtain funds to satisfy the principal owed on a debt secured by a second mortgage held by Colonial Bank on property that had been sold in a foreclosure sale, prejudgment interest, and attorney fees, from funds recovered by Bank of Prattville in a mortgage foreclosure sale. William T. DeRamus III, a cosigner of the note to Colonial Bank that was secured by Colonial Bank’s second mortgage, was permitted to intervene. The trial court, relying on general principles of the law of assignment, 1 entered a…