Citizens Savings Bank & Trust Co. v. White

In the note sued on — -executed by James W. "White and Mary E. White to Sauls & Lamb — there is the clause, “This note is secured by mortgage on real estate in Craven County.” By proper endorsement of the payees the plaintiff became a holder of the note in due course; but as the mortgage was not transferred or assigned the legal title to the mortgaged property remained in the mortgagees. In these circumstances the plaintiff held the note without notice of any infirmity in it or any defect in the title of the payees, and in the absence of an agreement to the contrary the security followed the…