Seattle Ass'n of Credit Men v. Bank of California

Millard, J. —

On January 16, 1931, the Multachrom Tubelight, Inc., a domestic corporation, of which Henry J. Lowdon was president, borrowed thirty-five hundred dollars, on its thirty-day promissory note, from the Bank of California, National Association. Contemporaneous with the making of the loan, the bank obtained from the borrower a written general loan and collateral agreement obligating the borrower to assign to the bank invoices or accounts receivable as they came into existence. That agreement, so far as material, reads as follows:

“In order to obtain loans from and otherwise to deal…