Federal Reserve Bk. of S. F. v. Hansbrough

This is an action to foreclose a mortgage. The defense is a claim that the mortgage indebtedness sued upon has been canceled by agreement; the consideration for the agreement of cancelation relied upon being an assignment to the mortgagee of an interest in certain judgments. The rights of the parties herein are determined entirely by the construction and legal effect to be given a contract executed between the parties subsequent to the mortgage.

We shall briefly relate the circumstances out of which the misunderstanding and controversy arises. The note for $7,915.00, and mortgage in question,…