62 S.W.2d 52 | Tenn. | 1933
The bill herein was filed to recover a deficiency decree on a note secured by mortgage on real property which has been foreclosed.
In this cause the mortgagor sold the property to a third party, who assumed the mortgage debt, and to whom, after maturity, an extension of time in writing on the back of the note was granted, without the knowledge or consent of the defendant mortgagor.
It is conceded that in Atlantic Life Ins. Co. v. Carter,
Subsequent to the decision in Atlantic Life Ins. Co. v.Carter, the Supreme Court of Minnesota, in Jefferson CountyBank v. Erickson,
It is further contended that the extension of time of payment constituted an alteration of the instrument, within the purview of the Uniform Act, that discharged the defendant. Such was the holding by the Supreme Court of Louisiana in Isaac v. VanHoose,
Finally, it is said that the cases of Atlantic Life InsuranceCompany v. Carter, supra, and Wright v. Bank ofChattanooga,
This cause was determined by the Chancellor prior to the decision in the Atlantic Life Insurance Company case, and he dismissed the bill.
For the reasons stated herein, the decree of the Chancellor will be reversed, and a decree entered in this Court in favor of complainant for the balance due on the note. *451