Baker v. Citizens' State Bank

The Coffee Creek State Bank failed, and C. E. Baker was duly appointed and qualified as its receiver in February, 1924, at which time the Citizens’ State Bank of St. Peter, Minnesota, held numerous promissory notes belonging to the Coffee Creek bank, as security for the repayment of borrowed money, and a second group of notes which had been tendered it as payment for certain Liberty bonds loaned to the Coffee Creek bank and tender refused.

The receiver determined, from an examination of the books in his possession, that the collateral was pledged only as security for the repayment of $1,000…