Cherry Cotton Mills, Inc. v. United States

MADDEN, Judge.

The plaintiff in 1936 made an application to The First National Bank of Florence, Florence, Alabama, for a loan of $110,000, to be evidenced by a note secured by certain collateral, with the understanding that the bank would request the Reconstruction Finance Corporation to agree to purchase a participation in the note. As a result of the negotiations, as set forth at length in the special findings of fact, the plaintiff executed a note for $110,000, with interest at 5 percent per annum and mortgaged certain securities therefor. The bank made the loan secured by the mortgage and…