B. C. Bynum Mercantile Co. v. First National Bank
Supreme Court of Alabama
Appeal from Clay Chancery Court. Heard before Hon. W. W. Whiteside. Bill by the First National Bank of Anniston against B. C. Bynum Mercantile Company and others to enforce its- rights as the assignee of a certain mortgage and a certain lease contract, together with the notes of the mortgagee and lessee given to secure the same. From a decree overruling demurrers to the bill, defendants appeal.
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Appeal from Clay Chancery Court. Heard before Hon. W. W. Whiteside. Bill by the First National Bank of Anniston against B. C. Bynum Mercantile Company and others to enforce its- rights as the assignee of a certain mortgage and a certain lease contract, together with the notes of the mortgagee and lessee given to secure the same. From a decree overruling demurrers to the bill, defendants appeal. The complainant loaned $3,000 to the Bynum Mercantile Company, and the note of the company was contemporaneously indorsed by B. C. Bynum and others as part of the original consideration. Afterwards,…
1Opinion of the CourtSomerville, J.
It is well settled by the authorities that a mortgage or pledge given as security for the pre-existing debt of the mortgagor or pledgor is valid and binding upon that consideration alone, and requires no new or additional consideration to support it.—Tur*284ner v. McFee, 61 Ala. 468; Spencer v. Sloan, 108 Ind. 183, 9 N. E. 150, 58 Am. Rep. 35; National Bank v. Dakin, 54 Kan. 656, 39 Pac. 180, 45 Am. St. Rep. 299; Jewett v. Warren, 12 Mass. 300, 7 Am. Dec. 74; Jones on Pledges, § 107; 31 Cyc. 795, 796, notes 20 and 21.
It is equally well settled that such a mortgage or pledge by a stranger to the…
2Cases cited8 opinions
- Holland v. BarnesSupreme Court of Alabama · 1875
- Jewett v. WarrenMassachusetts Supreme Judicial Court · 1815
- Jackson's Adm'r v. JacksonSupreme Court of Alabama · 1845
- Turner v. McFeeSupreme Court of Alabama · 1878
- Spencer v. SloanIndiana Supreme Court · 1886
3 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- Floyd v. RamboSupreme Court of Alabama · 1948
- United States Fidelity & Guaranty Co. v. First Nat. Bank of LincolnSupreme Court of Alabama · 1932
- Rankin v. First Nat. Bank of AlabamaSupreme Court of Alabama · 1983
- Wise v. StateSupreme Court of Alabama · 1922
- Merchants Bank v. HeadSupreme Court of Alabama · 2014
8 more not listed; retrieve them via the Exa API.