Jones v. Hernando Bank

The Hernando Bank sued Jones for $3,298.11 alleged to be the balance due, with attorneys’ fees, upon an original indebtedness of $10,000, bearing eight percent interest. This indebtedness was represented by two notes in the respective amounts of $7,400 and $2,600'.

In order to take up these obligations, Jones filed on November 9, 1933, an application with the Federal Land Bank for a loan of $12,500. Subsequently such application was approved for $5,000 with the understanding that the outstanding indebtedness to the Hernando Bank would be scaled down by it to $2,350,»such balance to bear six…