First National Bank of Tama v. Lynch

The plaintiff and appellant, the First National Bank of Tama, is the holder of an unsatisfied judgment against W. W. Lynch, who is the owner of 80 acres of land in Poweshiek County. On November 9,1923, W. W. Lynch executed a note for $8,864, payable to the appellee, J. M. Lynch, his brother, and secured the same by a second mortgage on the land. The action is to set aside this mortgage as having been executed in fraud of creditors.

The controlling principles of law are well settled. A creditor, acting in good faith, may take security from his debtor, or secure payment of his debt, although he…