Security Tire and Rubber Company v. Hlass

Conley Byrd, Justice.

Appellant Security Tire and Rubber Co., Inc. on April 25, 1967, took four notes from appellee Stephen E. Hlass secured by the following security agreement:

“I Steve E. Hlass do hereby assign the customer accounts receivables and the Company owned inventory of Stephens Tire Company, 2517 Alma Highway, Van Burén, Arkansas to the Security Tire and Rubber Company, Inc. of Richmond, Virginia, as collateral for four notes Nos. 1, 2, 3 and 4 in the amount of $9,092.00.”

On May 9, Stephen Hlass gave his check for $2,273.00 in payment of the first note which was dishonored because…