Drake v. Moore

LINDLEY, District Judge.

Plaintiff, as receiver of the First National Bank of Monticello, sues defendant upon a defaulted promissory note for $3,000 and interest. Defendant contends that there was no consideration for the instrument.

In March, 1932, the president of the bank announced to defendant’s father that the. institution’s capital had been reduced in such an amount as to make an existing loan to the father of $20,000 excessive in the sum of $2,000. The president testified that he said to the father that he must either pay $2,000 upon the latter’s indebtedness or secure its reduction by…