Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson

Exercise 17

Gregory Erkins executed a promissory note to Ameriquest Mortgage Co. (Ameriquest), secured by a mortgage on his house. Ameriquest assigned the note and mortgage to New York Trust Co., N.A. (New York). Elkins made the payments for two years and then defaulted. He sued New York to stop foreclosure proceedings, alleging that Ameriquest had engaged in tortuous behavior when the loan was taken out. If New York paid value for the note and had no knowledge of any allegedly tortuous behavior, should this defense be successful?