Vail and Vail vs. Foster

Summary

The New York Court of Appeals affirmed the lower court's decree that the plaintiffs were entitled to the bond and mortgage given by the principal debtor to the surety and could foreclose them to satisfy the purchase price. The court held that taking a third‑person's note does not create an equitable lien on the land, but the creditor retains the right to any collateral securities the principal debtor gave to the surety.