First National Bank v. Guyton

—Guyton gave three promissory nptes to Carter personally and executed to Carter personally a mortgage to secure the payment of the note. Carter transferred one of the nptes to each of three different banks, Carter being the president of each bank. Subsequently to the transfer of the notes, Carter personally released a portion of the mortgage in favor of second mortgagees of Guyton. The court gave priority to the second mortgagees over the holders of the notes transferred by Carter and the holders of the notes appealed.

When a note secured by mortgage is transferred the mortgage follows the…