Rice Growers' Credit Corp. v. Walker

Hart, C. J.,

(after stating the facts). The chancery court erred in its finding and decree. ■ The law is well settled that, where a creditor receives from his debtor the note or bill of a third person, the presumption is that he takes it by way of security. Bank of Hatfield v. Bruce, 164 Ark. 576, 262 S. W. 665; Hume v. Indiana Nat. Life Ins. Co., 155 Ark. 466, 245 S. W. 19.

The record shows that appellant had made advances to appellee with which to make a rice crop and took a mortgage on the crop to secure the payment of the indebtedness. Appellee sold the crop and delivered to appellant an…