Bank of Mobile v. Tishomingo Savings Institution

Mississippi Supreme Court
Bank of Mobile v. Tishomingo Savings Institution, 62 Miss. 250 (Miss. 1884)
Cooper

Bank of Mobile v. Tishomingo Savings Institution

Opinion of the Court

Cooper, J.,

delivered the opinion of the court.

So far as we are advised, no other State save Pennsylvania has decided that a failure to record a written defeasance, which is separate from the instrument by which the estate has been conveyed, will nullify the record of the absolute conveyance so that the land may be subjected to sale by the creditors of the grantor who holds the unrecorded defeasance.

We decline to adopt the views of the courts of that State, not only as opposed to the overwhelming weight of authority, but also because we think the rule announced in that State clearly wrong.

We also decline to follow those decisions which declare that a mortgage in the form of an absolute conveyance is per se and conclusive evidence of a fraudulent intent on the part of the grantor and grantee. It is a circumstance to be considered in determining the question of fraud, and entitled to such weight as other circumstances surrounding the transaction may indicate ought fairly to be given to it.

An examination of the facts of the case now before us has satisfied us beyond all reasonable doubt that the dealings between McIntosh and Taylor were altogether fair, that no creditor has been defrauded nor was intended to be.

The decree is affirmed.

Reference

Cited By
1 case
Status
Published
Syllabus
1. Mortgage. Absolute deed recorded. Defeasance unrecorded. Judgment creditor. The failure of the grantor in an absolute deed of conveyance which has been recorded to have a separate defeasance executed by his grantee also recorded, does not give to such instruments the character of an unrecorded mortgage and entitle a judgment creditor of such grantor having no actual notice thereof, to subject to his judgment the property thus conveyed. 2. Same. Inform of absolute deed. As evidence of fraud. An absolute conveyance intended to operate only as a mortgage is not conclusive evidence of an intention on the part of the grantor and grantee to defraud the creditors of the former, but is a fact to be considered in determining the question of fraud, and entitled to such weight as the surrounding circumstances may indicate.