Question 520. - When a bank takes, as security for an advance, an assignment of moneys payable under an agreement for sale of land, and, owing to misinterpretation of facts by the vendor as to the quality, etc., of the land, the purchaser, in an action, is released from the agreement, in what position is the bank placed in regard to the security?

Answer. - An assignment of moneys under an agreement for sale of lands not being a negotiable instrument, the assignee (in this case the bank) cannot take any higher, or better, position than the assignor (in this case the vendor). When the purchaser was released as regards the vendor, he was released as regards the bank.