First National Bank v. Pearce

*409The opinion of the court was delivered by

Johnston, C. J.:

S. C. Pearce executed a promissory note for $300, payable to C. A. Rathbun one year after date, and at the same time gave a mortgage on real estate to secure the payment of the note. Rathbun transferred the note and mortgage to the First National Bank of Hutchinson, but no record of the assignment or transfer was made.

Pearce, having no knowledge of the assignment, paid the indebtedness to Rathbun, except $20 of the interest. When the bank insisted on the payment of the note Pearce answered that he had previously paid the mortgage debt…