Manufacturers and Traders Trust Co. v. First National Bank
Florida District Court of Appeal
113 So. 2d 869 (Fla. D.C.A. 1959)
Relevant factsFree
The Shinstocks defaulted on a $25,000 loan from First National Bank (plaintiff) but remortgaged their property the same day in exchange for a 90-day repayment extension; Manufacturers and Traders Trust Co. (defendant) obtained a judgment against the Shinstocks that same day, but the bank's second mortgage was recorded first (August 23) and the judgment recorded later (August 28), with the bank having no actual or constructive knowledge of the judgment lien when it extended the loan.
IssueFree
Whether, when a creditor issues a second mortgage of real property in exchange for extending the time to pay a preexisting debt, the mortgage constitutes a purchase for value.