Merchants National Bank v. Demere

Simmons, Justice.

Gadsden, the cashier of the Merchants National Bank, desiring to borrow $10,000, induced Demere to apply to the bank in his own name for a loan of that amount, it being privately understood between Gadsden and Demere that the money, when obtained, should be turned over to him (Gadsden), for Gadsden’s own use and benefit, and that he should furnish certain stocks and bonds to be put up in Demere’s name as collateral security to the bank on Demere’s note for the loan. The loan was granted, and the money turned over by Demere to Gadsden, Demere giving his note therefor, dated…