Exchange Bank & Trust v. Gibbons

The only question presented by this appeal is that of priority between a mortgage executed by J. M. Gibbons to the appellee McHen-ry and a later mortgage executed by Gibbons to the appellant bank. The chancellor held that the earlier mortgage had not lost its original priority. The decree awarded McHenry a first lien on the land and directed the foreclosure of both mortgages.

On March 25, 1947, Gibbons and his wife executed a mortgage to McHenry to secure three notes totaling $1,180, the last note being due March 17, 1950. No payments on this debt were ever made by Gibbons, but the due date of…