Wilson Brothers v. Cooey

On 18 January 1965, Holiday Barn, Inc. (the Barn) took title to an unimproved lot fronting 180 feet on the Hagerstown-Smithsburg Pike with a depth of 150 feet, theretofore owned by Holiday Acres, Inc. Immediately thereafter the Barn mortgaged the lot to Colonial Estates, Inc. (Colonial), to secure a loan of $110,000. On the same day, Colonial assigned the mortgage to Farmers and Mechanics National Bank of Frederick (Farmers and Mechanics), and on the following day borrowed $71,200 from the bank. On 11 February 1965, Colonial borrowed an additional $31,000 from Farmers and Mechanics, thus…