Aunt Moira lent $25,000 to her nephew Alan as a down payment for a house.Aunt Moira prepared a document on her own,which set out the terms of payment.The document was never executed,but was turned over to Aunt Moira's solicitor with instructions to "do whatever was supposed to be done." The solicitor drew up a promissory note,which stated that it created a charge on the land until paid,and gave it to Aunt Moira.Alan signed the note,and paid in accordance with the terms of "the mortgage." Some years later,Alan approached a bank for more extensive financing.Alan filled out a comprehensive standard form statement of his assets and liabilities at the bank's request.Advise the bank as to its position.

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The Answer of Aunt Moira lent $25,000 to her nephew Alan as a down payment for a house.Aunt Moira prepared a document on her own,which set out the terms of payment.The document was never executed,but was turned over to Aunt Moira's solicitor with instructions to "do whatever was supposed to be done." The solicitor drew up a promissory note,which stated that it created a charge on the land until paid,and gave it to Aunt Moira.Alan signed the note,and paid in accordance with the terms of "the mortgage." Some years later,Alan approached a bank for more extensive financing.Alan filled out a comprehensive standard form statement of his assets and liabilities at the bank's request.Advise the bank as to its position.

Aunt Moira Lent $25,000 to Her Nephew Alan as a Down