Milikin v. Murphy

Hawkins, Justice.

1. Where, as here, a deed to secure debt contained what is commonly referred to as an “open end” or “dragnet” clause that “This deed shall further be security for any other debt, demand or claim of the. Association [the grantee], against the first party [the grantor] whether now existing or hereafter incurred,” a transferee or assignee of such security deed would not be authorized to tack on an indebtedness which was owing by a third person or corporation to the grantor in such deed, and which had been transferred by the grantor to the assignee of the deed, and to exercise…