Blackpipe State Bank v. Grass

On February 20; 1951 John Morsett owed the plaintiff bank $8,989.98 secured by a chattel mortgage on livestock, farm machinery and other personal property; the loan was past due and under secured; one bank officer described it as “static”; the State Banking Department had criticized the loan and told the bank to get it off the books. As a result of some conversations Morsett gave a bill of sale of all the mortgaged property to the defendant Grass, who then executed a note and chattel mortgage to the bank for $8,990; this mortgage listed verbatim Morsett’s property as shown in the bill of sale…