Security Bank v. Chiapuzio

Plaintiff brought this action on a promissory note and to foreclose its security interest in a vendor’s interest under a land sale contract, which had been assigned to it in 1982 by defendant Henry Bunnell, the original vendor, to secure payment of the note, which he had co-signed. Defendant Chiapuzio (defendant) purchased the encumbered vendor’s interest from Bunnell in 1984 and claims to own that interest free and clear of plaintiffs security interest to the extent that he gave value without knowledge of the prior encumbrance to plaintiff. The trial court granted plaintiffs motion for…