Iowa State Savings Bank v. Young

The plaintiff-appellant, hereinafter referred to as the Bank, held two notes against the defendant Young, one in the principal sum of $3000 and the other in the principal sum of $1600, both secured by mortgage on real estate. None of the money loaned by the Bank to Young had been used in the purchase of the stock of merchandise sold. The notes were due and unpaid at the time the suit was brought.

The defendant Young was the owner of a stock of groceries at Glenwood, Iowa. The business had formerly been operated by the defendant Davis, and when Davis sold to Young, Davis retained the meat…