Week 3 Management 597 Assignment
Professor: Vanessa Cross
May 24, 2013
Week 3 management assignment Page 1 of 4
Week 3 management assignment
Reference to Another Agreement Holly Hill Acres, Ltd. (Holly Hill), purchased land from Rogers and Blythe. As part of its consideration, Holly Hill gave Rogers and Blythe a promissory note and purchase money mortgage. The note read, in part, this note with interest is secured by a mortgage on real estate made by the maker in favor of said payee. The terms of said mortgage are by reference made a part hereof. Rogers and Blythe assigned this note and mortgage to Charter Bank of Gainesville (Charter Bank) as security in order to obtain a loan from the bank. Within a few months, Rogers and Blythe defaulted on their obligation to Charter Bank. Charter Bank sued to recover on Holly Hills note and mortgage. Does the reference to the mortgage in the note cause it to be nonnegotiable? Holly Hill Acres, Ltd. v. Charter Bank of Gainesville, 314 So.2d 209, Web 1975 Fla.App. Lexis 13715 (Court of Appeal of Florida)
In this particular case Charter was assignee of a promissory note and purchase money mortgage executed and delivered by Holly Hills. The other defendants assigned the promissory note and mortgage to Charter to secure their own note. Charter sued Holly Hills and other defendants alleging default on their notes.
The lower court held Charter as the holder in due course of the note executed by Holly Hills and entered summary final judgment against Holly Hills.
The court on appeal found that the note was non-negotiable because it incorporated the terms of...