Citizens Security Bank of Bixby v. Courtney

BRIGHTMIRE, Presiding Judge.

The question raised here is whether the trial court correctly applied the equitable doctrine of merger in finding that plaintiff bank’s first mortgage lien was extinguished by the acquisition of a quitclaim deed to the mortgaged property from the mortgagor.

I

On March 17,1972 John Courtney and his wife obtained a $29,100 development loan from the Citizens Security Bank of Bixby, Oklahoma and gave a mortgage on the undeveloped site to secure their promissory note. Following completion of some construction the Courtneys defaulted on the note as well as on a couple of…