Page:North Dakota Reports (vol. 48).pdf/96

 THE ROLETTE COUNTY BANK of St. John, N. Dak., a corporation, and FRED E. HARRIS, its receiver, Appellant, v. JOSEPHINE HANLYN, formerly JOSEPHINE HOWE, THOMAS J. CLIFFORD, G. L. PETERSON, FARMERS NATIONAL BANK of Hendricks, Minn., a corporation, WILLIAM H. ALLEN, and all other persons unknown, claiming any estate or interest in or lien or incumbrance upon the property described in the complaint, Respondents.

Mortgages—recording acts apply to executory contracts, mortgages and assignments.

C., the owner of certain land, contracted to sell it to Mrs. H., the latter giving notes for the purchase price. The contract was recorded. C. transferred one of the notes to the plaintiff and subsequently deeded the land to the H. bank. The H. bank obtained a quit-claim deed from Mrs. H., and subsequently sold the land to A. who paid full value for it. It is held:

1. Following Shelly v. Mikkelson, 5 N. D. 22, 63 N. W. 210; Henniges v. Paschke, 9 N. D. 489; Simonson v. Wenzel, 27 N. D. 638, 147 N. W. 804, the recording acts in this state apply to executory contracts for the sale of land, to mortgages, and to assignments of mortgages.

Mortgages—claim of purchaser of note failing to record assignments of mortgage inferior to subsequent purchaser in good faith without notice.

2. A purchaser of a note secured by a mortgage upon an equitable interest in land acquires an equitable interest in the mortgage; but, following Henniges v. Paschke, supra, upon failure to take and record an assignment of the security his claim ig inferior to that of a subsequent purchaser of the land in good faith and for value without notice.

Vendor and purchaser—purchaser may rely upon public records to determine existence of mortgage liens.

3. One purchasing real property may rely upon the public records to determine the existence of mortgage liens, and where such a lien is discharged of record by the person or persons having prima facie authority to discharge it a subsequent purchaser of the property is not bound to inquire as to whether negotiable, secured notes are outstanding in the hands of assignees where there is no record of such assignments.