HSBC Bank USA, N.A. v. Rolando Perez, Juan G. Guerra, Esperanza Medina, LaSalle, Bank, N.A., and U.S. Bank, N.A.

As a result of a fraudulent scheme, two banks took possession of nearly identical promissory notes secured by the same mortgage. The underlying transaction contemplated just one note. After payments stopped, both banks sought to foreclose. The question before us asks which bank may proceed?

To resolve the dispute, the circuit court applied section 701.02, Florida Statutes (2008), the recording statute for mortgage assignments. We conclude that the Uniform Commercial Code, and not the recording statute, controls this case. Under the Code, the bank that first perfected its interest in a note and…