Sylvester Motor & Tractor Co. v. Farmers Bank

Sognier, Judge.

Tillman Dean purchased a tractor from an International Harvester dealer, Faircloth International, Inc. (Faircloth) and gave a security agreement and bill of sale to Production Credit Association as security for a loan of the purchase price. Four days after the sale Faircloth borrowed the tractor from Dean for demonstration purposes; unknown to Dean, Faircloth transferred the tractor to appellant (Sylvester), another International Harvester dealer, without informing appellant the tractor had been sold to Dean. Subsequently, Production Credit Association transferred the security…