Question 531. - A bank demands security for an existing loan, which the debtor agrees to give if a further loan is made to him. This is agreed to, and he gives a mortgage to secure the whole amount. Would such a mortgage be valid, or, if invalid as to the new portion of the loan, would it be valid to the extent of the previous advance?

Answer. - The courts would probably hold the mortgage to be valid to the extent of the original loan, but not good as to the new loan.