Peoples State Bank v. First National Bank

The evidence discloses that the plaintiff, at the time it took the deed from the widow and heirs and surrendered the notes and cancelled the mortgages, had no actual knowledge of the existence of the mortgage given to the defendant bank, but the latter mortgage was on record and plaintiff is, of course, chargeable with constructive notice of its existence. We think the evidence shows that the value of the property conveyed to the plaintiff was and is substantially less than the amount of plaintiff’s two mortgages, but the defendant -bank has introduced evidence tending to show that the value…