Opinion ID: 1818600
Heading Depth: 1
Heading Rank: 6

Heading: The second deed of trust is void for lack of consideration.

Text: ¶ 19. Ballard argues that the second deed of trust is void for lack of consideration and thus cannot stand on its own. See Catlett v. Bacon, 33 Miss. 269 (Miss. 1857) (Mississippi courts have declared mortgages void, invalid, and unenforceable for want of consideration); Jackson v. Holt, 192 Miss. 702, 6 So.2d 915 (1942) (want of consideration has been referred to as a want of equity, and Mississippi courts have characterized such an agreement or deed of trust as nudum pactum ). To the contrary, the Bank contends that sufficient consideration was given. ¶ 20. It has long been the rule in Mississippi that an extension of time to pay an existing note is sufficient consideration for a subsequent deed of trust. See, e.g., Jones Supply Co. v. Ishee, 249 Miss. 515, 163 So.2d 470, 473 (1964). Furthermore, it cannot be argued that antecedent debt, even that of someone other than the grantor, fails to provide sufficient consideration. The Restatement (Third) of Property Mortgages states that (c) [a] mortgage that secures a performance of a preexisting legal obligation is enforceable. Restatement (Third) of Property Mortgages § 1.2(c) (1997). This Court has quoted the Restatement with approval in determining mortgagors' obligations under deeds of trust. See Shutze v. Credithrift of America, Inc., 607 So.2d 55 (Miss.1992). ¶ 21. In addition to the Restatement, this Court also has looked to the Uniform Commercial Code for guidance. The Mississippi Uniform Commercial Code explicitly provides that [a]n instrument is issued or transferred for value if ... [it] is issued or transferred as payment of, or as security for, an antecedent claim against any person, whether or not the claim is due.... Miss.Code Ann. § 75-3-303(a) (Rev.2002). ¶ 22. The chancellor concluded that the second deed of trust was supported by legally sufficient consideration and thus could stand on its own. We find that the chancellor's determination was correct and should be affirmed. The notes in the instant case represent antecedent debt, as each note was issued to Moody by Commercial Bank prior to Ballard's execution of the second deed of trust. [4] As the second deed of trust can stand alone, it can be used to foreclose on Ballard's property, absent fraud or misrepresentation.